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Ripping 'Greedy Wall Street Vulture Funds' Profiting From Misery, Warren and Sanders Introduce Bill to Cancel Puerto Rico's Debt


#1

Ripping 'Greedy Wall Street Vulture Funds' Profiting From Misery, Warren and Sanders Introduce Bill to Cancel Puerto Rico's Debt

Jake Johnson, staff writer

As advocacy groups urgently warn that Wall Street firms are moving to capitalize on Puerto Rico's plight in the aftermath of Hurricane Maria by extracting debt payments and pushing for the privatization of public services, Sen. Bernie Sanders (I-Vt.) joined Sen.


#2

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.


#3

Puerto Rico should boldly and proudly default.

Wall St vultures took a risk when they loaned. Now they need to be reminded that risks don’t always pay off.


#4

Please explain how, without this bill (which has no chance of passing in todays congress), you’re proposed action will not hand everything over to the greedy vultures. I’m not a finance person, so what am I missing ?


#5

Have Sanders and Warren endorsed Cynthia Nixon yet?


#6

Could Puerto Rico (Britain, Greece) follow Spain’s example?

“Unless the heartless eurocrats cancelled its foreign debts immediately, Greece should revert to the drachma, devalue, default and buccaneer its way forward as an independent country – just as Britain could and would.”


#7

I agree, except that people are so desperate for basic goods and services that it is a fearful thing to do. Besides, the governor and much of the political elite in Puerto Rico are very much in the pockets of the oligarchs and Wall St.

My guess is you’re going to see a Greek-type “bailout” with the Dims playing the role of Syriza. The oligarchs need a semi-functioning Puerto Rico because much drug production is there, along with other low-wage industries. Then of course there are the illegal drug trade and tourism (which is owned by mainland U.S.-based elites).


#8

The vultures can take the infrastructure they wrote into the loans as collateral.

I’m sure they’ll be happy owning an energy grid, water treatment plants, roads, and schools.


#9

That’s what I thought. So not helpful at all to the PR people as the vultures keep turning the screws and raising the fees for their infrastructure.


#10

Helpful in the sense that the debt burden is removed.

One third of its treasury payments go to servicing that debt, which is rated ‘junk.’