Simpson Thacher Represents Scotiabank in Connection with $5.6 Billion FDIC-Assisted Acquisition in Puerto Rico
05.03.10
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Simpson Thacher is representing The Bank of Nova Scotia in connection with the acquisition of the banking operations of R-G Premier Bank of Puerto Rico from the FDIC. On April 30, 2010, R-G Bank was closed by the regulators and its banking operations transferred to Scotiabank de Puerto Rico (Scotiabank’s Puerto Rico bank subsidiary). Under the terms of the transaction, Scotiabank de Puerto Rico acquired approximately $5.6 billion in assets and assumed $2.2 billion in deposits of R-G Bank. As part of the transaction, the FDIC and Scotiabank de Puerto Rico entered into a loss sharing agreement covering substantially all acquired loans. In addition, the FDIC provided secured financing to balance the acquired assets.
This transaction was part of a coordinated resolution by the FDIC of the three most troubled banks in Puerto Rico, holding nearly a quarter of total deposits on the island, in one of the FDIC’s most complicated resolution transactions since the beginning of the financial crisis.
The Simpson Thacher team includes Lee Meyerson, Anthony Vernace, Iksoo Kim and Solomon Bashi (M&A); Mark Chorazak (Bank Regulatory); Jim Buresh, Erik Hepler, Daniel Kay and Brian Korchin (Credit); and Krista McManus and Eric Berry (Real Estate).