Clinton says Puerto Rico should have access to U.S. bankruptcy laws

[Eugene]

Source: Reuters

US | Tue Jul 7, 2015 12:02pm EDT

Clinton says Puerto Rico should have access to U.S. bankruptcy laws

IOWA CITY, IOWA | BY AMANDA BECKER

U.S. Democratic presidential candidate Hillary Clinton said on Tuesday that Puerto Rico's public entities should be able to use U.S. bankruptcy laws to restructure some $72 billion in debt.

Puerto Rico's Governor Alejandro Garcia Padilla dropped a bombshell on holders of the U.S. territory's debt a week ago by saying that he wants to restructure debt and postpone bond payments. He also urged Washington to make changes to U.S. bankruptcy laws to include Puerto Rico.

Like U.S. states, Puerto Rico, a commonwealth, cannot file for bankruptcy protection. Unlike U.S. states, Puerto Rico's public entities, including municipalities, are not covered by U.S. Chapter 9 bankruptcy laws.

"The people of Puerto Rico are hurting right now under a weak economy that has been struggling for years," Clinton said in a statement given to Reuters.

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Read more: http://www.reuters.com/article/2015/07/07/us-usa-election-clinton-puertorico-idUSKCN0PH11920150707

[yeoman6987]

1. I don't see how they could

They don't pay federal taxes at all. Where would the money come from?

[FSogol]

2. Moot issue, they could be charged the costs of running the program similar to citizens in Chap

13.

You either allow them to restructure the debt or you bail them out. Since we don't have a spare $70+ billion, the better option is to allow them into bankruptcy protection.

[askew]

3. Nice of her to finally notice.

O'Malley called attention to this weeks ago. As usual, Hillary is just following. Wonder if she'll ever lead on anything.

[bigtree]

4. good for her

Martin O'Malley's statement on Puerto Rico from last week...




Gabriela Domenzain ?@GabiDomenzain
@washingtonpost: '#PuertoRico’s debt significant 2016 issue' @MartinOMalley aggressively embraced bankruptcy option: http://link.washingtonpost.com/view/549a22713b35d07f028dd3982snt8.5nl3/24c65838 …

Martin O’Malley aggressively embraced the bankruptcy option last Tuesday in a play for Hispanics, and the former Maryland governor earned tons of free media in the Spanish-language press for his stance. Hillary Clinton tweeted last week that, “Puerto Rico’s debt crisis is not theirs alone. For PR’s economy to grow & their people to thrive, they need real tools & real support.” Asked if that means she supports the right to Chapter 9, a spokesman for the former secretary of State declined to comment.

Clinton is trying to raise as much as she can from Wall Street executives who already eye her skeptically because of her leftward lurch to win the nomination. But, in 2008, she beat Barack Obama in the island’s June 1 primary after both traveled there for events. The Podesta Group, run by Democratic lobbyist Tony Podesta, has earned at least $1.15 million in the past two years lobbying on the Puerto Rican government’s behalf. Tony’s brother, John, is chairman of the Clinton campaign.

[FSogol]

7. +1 n/t

[Sancho]

5. We all know there is a lot of history, but if PR was a state, the budget would balance.

Virtually all state constitutions require it. A beautiful place.

[bigtree]

6. I've rarely witnessed such abject poverty as I did beyond the tourist side of town

...beyond the old fort.

It is a beautiful island though.