Bloomberg – Popular Inc. (BPOP), the Puerto Rican bank that owes $935 million to the U.S. government, has surged 30 percent this year as more customers pay their debts on time. Popular has attracted hedge funds wagering on a rebound, including Valinor Management LLC and Paulson & Co., its two largest shareholders, according to data compiled by Bloomberg. The stock has risen 62 percent to $1.81 from a two-year low on Dec. 19, even as the bank grapples with a Puerto Rican recession that began in 2006.
Losses on the bank’s subprime mortgages and commercial and construction loans surged during the financial crisis and regulators had to inject bailout funds from the Troubled Asset Relief Program in November 2008.
