Puerto Rico's FDIC-insured banks are well capitalized but the Federal Deposit Insurance Corp stands ready to act if one should become insolvent, according to a letter sent to Congressman Sean Duffy, chairman of a Financial Services subcommittee who had inquired about their health.
"Our committee has jurisdiction over banks ... and we have been working on the safety and soundness concerns of Puerto Rico banks," said Duffy, who is separately working on a proposal to look for solutions to Puerto Rico's problems with possible ideas including using a financial control board.
Duffy, a Republican from Wisconsin, also said he is working on broader ideas for a draft proposal to address solutions for Puerto Rico.
Ideas could include a financial control board, an idea proposed in June by Republican Congressman Jeffrey Duncan, and Duffy is examining the possible impact of lifting the Jones shipping Act.
The Jones Act requires ships carrying goods from one U.S. port to another to be built in the United States.
He did not rule out supporting extending Chapter 9 bankruptcy protection for Puerto Rico entities, currently a Democrat-supported proposal, but would like to see it part of wider reforms.
"We have to come up with solutions that help the Puerto Rico people," said Duffy. "It's incumbent upon Republicans to engage on this issue."