Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Popular CEO Says He Was ‘Not Involved’ in Loans to Board Members

Don't Miss Out —
Follow us on:

April 20 (Bloomberg) -- Popular Inc. Chief Executive Officer Richard Carrion said today he was “not involved” in approving delinquent or troubled loans made to some board directors.

“They were made with the approval of the board of directors. I was certainly not involved in that approval,” Carrion, who’s also the bank’s chairman, said today on a conference call following the San Juan-based lender’s first-quarter results.

Carrion, 59, who’s been Popular’s CEO for almost two decades and sits on the board of the Federal Reserve Bank of New York, is seeking to help the bank recover from losses on soured home loans and repay $935 million to the U.S. government after a 2008 bailout.

His sister and two of his nephews, one of whom is also a Popular director, have delinquent property loans to the lender, according to a regulatory filing. The bank has also restructured the loans of another director, the board’s head of corporate governance, and classifies his debts as “troubled,” the filing shows.

“In the past few years, things have not worked out exactly as we expected in Puerto Rico,” Carrion said in response to an analyst’s question. “We expect that these loans at this current level will get paid.”

Popular reported first-quarter net income that more than quadrupled to $48.4 million, or 5 cents a share, from last year. It rose 3.9 percent to $1.89 at 4:30 p.m. in New York trading. The shares gained 36 percent this year.

‘Internal Procedures’

“All related party transactions are subject to internal procedures and banking laws and regulations that require they be made on market terms and conditions,” said Teruca Rullan, a spokeswoman for Popular, in a statement e-mailed earlier this week.

Any transaction involving directors and their “related business interests must be approved in advance by the board of directors, which is overwhelmingly comprised of independent directors,” she said, declining to comment further on behalf of Carrion’s family members and the directors.

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.