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"If you saw $20 lying on the street would you pick it up? Of course you would, you are a proud card-carrying member of the Value Investor Club not some academic sitting in an efficient market ivory tower!

You want that free money? Then short Doral Financial (DRL) if you can get the borrow. This bank is a shuffling, leprous zombie and Buffy the FDIC-examiner is about to drive Mr. Pointy in the undead thing's heart."

This is how grumpy922 started his great EUBK short write-up in 2010. I simply changed the company to Doral. We have the same exact story here. DRL is likely to fail today and you can still short the stock. In fact, I just shorted 18K today for my PA. 

DRL is likely to fail today (Feb 27):

http://www.caribbeanbusinesspr.com/news/sources-fdic-to-take-over-doral-bank-feb.-27-104952.html

FBP has the upperhand to buy DRL but it's also likely that OFG buys pieces of DRL too:

http://www.caribbeanbusinesspr.com/prnt_ed/firstbank-with-upper-hand-in-fdics-doral-takeover-10941.html

Both FBP and DRL are bidding for DRL from the FDIC:

http://www.caribbeanbusinesspr.com/news/banks-bid-aggressively-for-doral-operations-105268.html

The FDIC gave DRL until Feb 27 to come up with a plan they approve. The FDIC has yet to approve a plan though:

http://www.caribbeanbusinesspr.com/news/fdic-closely-eyeing-doral-103767.html

It's Zero Hour for Doral:

http://www.elnuevodia.com/negocios/finanzas/nota/horaceroparadoral-2013120/

This bank is ripe with fraud. A mid level employee was just indicted for fraud:

http://www.fbi.gov/sanjuan/press-releases/2015/former-doral-employee-and-contractor-indicted-for-bank-fraud

Catalyst

FDIC takes it over tonight or next week at the latest.