 |
February 18, 2008 |
|
|
|
 |
R&G FINANCIAL: U.S. SEC Okays Final Settlement on Financials R&G Financial Corp. reported on Feb. 13, 2008, that the U.S. Securities and Exchange Commission approved a final settlement with the company, which resolves the SEC's investigation of the company in connection with its previously announced restatement of its financial statements. Reuters relates that the SEC had filed a complaint in the U.S. district Court of Manhattan, alleging that R&G inflated net income by US$180 million by improperly accounting for transactions in 2002, 2003, and 2004. SEC claimed that R&G Financial's board had subsequently made significant management changes, restated the company's financials and taken other remedial action, including entering into consent orders with the Federal Reserve and the Federal Deposit Insurance Corp. Under the settlement approved by the SEC, R&G Financial agreed, without admitting or denying any wrongdoing, to be enjoined from future violations of certain provisions of the securities laws. The SEC did not impose a financial penalty in connection with this settlement. The company has consented to the entry of a final judgment to implement the terms of the agreement. The U.S. District Court for the Southern District of New York must consent to the entry of the final judgment in order to consummate the settlement. Headquartered in San Juan, Puerto Rico, R&G Financial Corp. (PNK: RGFC.PK) -- http://www.rgonline.com/ -- is a financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage Corporation, Puerto Rico's second largest mortgage banker, R-G Investments Corporation, the company's Puerto Rico broker- dealer, and R-G Insurance Corporation, its Puerto Rico insurance agency. The company operates 37 bank branches in Puerto Rico, 36 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 44 mortgage offices in Puerto Rico, including 36 facilities located within R-G Premier Bank's banking branches. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2007, Fitch downgraded the long-term issuer default rating of R&G Financial Corporation to 'CCC' from 'BB-'. Further, R&G was placed on rating watch negative. In addition, the long-term IDR of R-G Premier Bank has been downgraded to 'B' from 'BB-'. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Latin America. To receive the Full TCR-LA please CLICK HERE.
