New Statement from Doral Legal Counsel Matthew D. McGill Regarding Doral Negotiations with Hacienda

SAN JUAN, Puerto Rico, Aug. 22, 2014

"Doral has not left the negotiations.  The Treasury Department attempted on Thursday to introduce into the negotiations so-called "business points" conceived by its new outside counsel, Foley & Lardner, that were contrary to the provisions of the agreement reached and sworn to by the parties in front of Judge Perez-Perez of the Court of the First Instance.  Foley & Lardner recently represented Doral in a related matter and that raises a conflict of interest.  It has a duty of loyalty to its client, Doral, from acting adversely to Doral.  For that reason, Doral sought guidance from Judge Perez-Perez as to how to proceed.  Judge Perez-Perez ruled that the parties will continue negotiations today under her supervision, without the participation of Foley & Lardner, and according to the terms previously agreed by the parties."

Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries Doral Bank, with operations on the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico. Doral Financial Corporation's common shares trade on the New York Stock Exchange under the symbol DRL. Additional information about the case of Doral Financial Corporation against the Government of Puerto Rico can be found at www.DoralPuertoRicoFacts.com.

SOURCE Doral Financial Corporation