The article mentions the journalist David Dayen who I follow and sends out a weekly update. He just sent out the following article by another journalist.
Cuomo Campaign Bolstered by Puerto Rico Bondholders Causing Austerity in the Territory : New York Gov. Andrew Cuomo is in Puerto Rico this week to help rebuilding efforts. But his reelection campaign has accepted five-figure donations from top financial executives whose firms’ demands have led to austerity measures there.
The democratic party stands strongly behind Cuomo. When is corruption going to be a bridge too far?
As New York Gov. Andrew Cuomo makes his fifth trip to Puerto Rico since Hurricane Maria devastated the island in September 2017, he is running a reelection campaign that has accepted large donations from billionaire financial executives whose firms are heavily invested in Puerto Rican bonds and are imposing stiff austerity measures there.
Since 2015, the Cuomo campaign has accepted close to $235,000 from several fund managers who currently hold or formerly held Puerto Rican bonds, and from their spouses, according to Sludge’s analysis. While that total is a small fraction of the roughly $35.1 million raised by the campaign during this election cycle, critics say it represents a conflict of interest for a governor who claims to have Puerto Rico’s best interests in mind.
In recent years, Wall Street vulture funds have bought up distressed debt in Puerto Rico, hoping to score big contracted payouts through legal settlements that force the island to pay them back. Austerity measures, created so that Puerto Rico can pay back its creditors, have hampered vital recovery efforts in the U.S. territory.
Puerto Rico’s unelected fiscal control board, created by Congress in 2016, released austerity plans in April that included a 10 percent average cut to Puerto Rico’s pension system, consolidation of state agencies, and cutting sick leave and vacation pay in half for government workers. In June, the board announced that it will eliminate a $25 million university scholarship fund and cut a $50 million annual fund for Hurricane Maria recovery.