Subsequent events	6 Months Ended
Jun. 30, 2011
Subsequent events	Note 31 – Subsequent events Subsequent events are events and transactions that occur after the balance sheet date but before financial statements are issued. The effects of subsequent events and transactions are recognized in the financial statements when they provide additional evidence about conditions that existed at the balance sheet date. The Corporation has evaluated events and transactions occurring subsequent to June 30, 2011. Such evaluation resulted in no adjustments in the consolidated financial statements for the quarter ended June 30, 2011. Certain Regulatory Matters On July 25, 2011 the Corporation and Banco Popular de Puerto Rico (“BPPR”) entered into a Memorandum of Understanding (the “Corporation/BPPR MOU”) with the Federal Reserve Bank of New York (the “FRB-NY”) and the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (the “Office of the Commissioner”). On July 25, 2011 Banco Popular North America (“BPNA”) entered into a Memorandum of Understanding (the “BPNA MOU” and collectively with the Corporation/BPPR MOU, the “MOUs”) with the FRB-NY and the New York State Banking Department (the “Banking Department”). The MOUs provide, among other things, for the Corporation and BPPR to take steps to improve their credit risk management practices, for BPNA to take steps to improve its asset quality, and for the Corporation, BPPR, and BPNA to develop strategic plans to improve earnings and to develop capital plans. The Corporation does not expect the capital plans to require the Corporation to maintain capital ratios in excess of those it currently has achieved. The MOUs require BPPR to obtain approval from the Office of the Commissioner and the Federal Reserve System prior to declaring or paying dividends or incurring, increasing or guaranteeing debt, require BPNA to obtain approval from the Banking Department and the Federal Reserve System prior to declaring or paying dividends, and require the Corporation to obtain approval from the Federal Reserve System prior to declaring or paying dividends, incurring, increasing or guaranteeing debt, or making any distributions on its Trust Preferred Securities or subordinated debt. In connection with the resumption of payment of monthly dividends on its Preferred Stock, in December 2010, the Corporation committed to the Federal Reserve System to fund the dividend payments out of newly-issued Common Stock issued to employees under the Corporation’s existing savings and investment plans or, if such issuances are insufficient, other common equity capital raised by the Corporation. It is currently anticipated that the Corporation will receive approval from the Federal Reserve System to make dividend payments on its Preferred Stock subject to the same commitments in the future, but there can be no assurance that such approvals will continue to be received. It is anticipated that sufficient Common Stock will be issued under those plans to cover the dividend payments. Subsequent to entering into the MOU the Corporation received approval from the Federal Reserve System to pay regularly scheduled dividends on its Preferred Stock and distributions on its Trust Preferred Securities through September 30, 2011. The Corporation has no current intention to seek approval to resume dividend payments on its Common Stock.

Note 31 – Subsequent events

Subsequent events are events and transactions that occur after the balance sheet date but before financial statements are issued. The effects of subsequent events and transactions are recognized in the financial statements when they provide additional evidence about conditions that existed at the balance sheet date. The Corporation has evaluated events and transactions occurring subsequent to June 30, 2011. Such evaluation resulted in no adjustments in the consolidated financial statements for the quarter ended June 30, 2011.

Certain Regulatory Matters

On July 25, 2011 the Corporation and Banco Popular de Puerto Rico (“BPPR”) entered into a Memorandum of Understanding (the “Corporation/BPPR MOU”) with the Federal Reserve Bank of New York (the “FRB-NY”) and the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (the “Office of the Commissioner”). On July 25, 2011 Banco Popular North America (“BPNA”) entered into a Memorandum of Understanding (the “BPNA MOU” and collectively with the Corporation/BPPR MOU, the “MOUs”) with the FRB-NY and the New York State Banking Department (the “Banking Department”). The MOUs provide, among other things, for the Corporation and BPPR to take steps to improve their credit risk management practices, for BPNA to take steps to improve its asset quality, and for the Corporation, BPPR, and BPNA to develop strategic plans to improve earnings and to develop capital plans. The Corporation does not expect the capital plans to require the Corporation to maintain capital ratios in excess of those it currently has achieved. The MOUs require BPPR to obtain approval from the Office of the Commissioner and the Federal Reserve System prior to declaring or paying dividends or incurring, increasing or guaranteeing debt, require BPNA to obtain approval from the Banking Department and the Federal Reserve System prior to declaring or paying dividends, and require the Corporation to obtain approval from the Federal Reserve System prior to declaring or paying dividends, incurring, increasing or guaranteeing debt, or making any distributions on its Trust Preferred Securities or subordinated debt.

In connection with the resumption of payment of monthly dividends on its Preferred Stock, in December 2010, the Corporation committed to the Federal Reserve System to fund the dividend payments out of newly-issued Common Stock issued to employees under the Corporation’s existing savings and investment plans or, if such issuances are insufficient, other common equity capital raised by the Corporation. It is currently anticipated that the Corporation will receive approval from the Federal Reserve System to make dividend payments on its Preferred Stock subject to the same commitments in the future, but there can be no assurance that such approvals will continue to be received. It is anticipated that sufficient Common Stock will be issued under those plans to cover the dividend payments.

Subsequent to entering into the MOU the Corporation received approval from the Federal Reserve System to pay regularly scheduled dividends on its Preferred Stock and distributions on its Trust Preferred Securities through September 30, 2011. The Corporation has no current intention to seek approval to resume dividend payments on its Common Stock.