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Popular to record $55M charge after arbitration loss

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Popular to record $55M charge after arbitration loss

An arbitration panel denied one of 's claimsregarding a commercial loss-share agreement with the FDIC.

The FDIC-assisted transaction for in 2010 wassaid to have guaranteed compensation from the regulator for 80% of the boughtassets' losses — up to a certain amount. Banco Popular's denied claim was forreimbursement of about $55 million.

The unfavorable result from the review board will cause to record a pretax charge of $55 million for the quarter ended Sept. 30. Therewill also be a corresponding decrease in the bank's FDIC indemnification asset.

CEO Richard Carrión said the company will "continue toactively assert [its] rights under the commercial loss share agreement."