A pair of Wall Street investment firms is challenging Puerto Rico's new law allowing some public agencies to restructure their debt, saying that it violates the U.S. Constitution, the Wall Street Journal reported today. Funds managed by Franklin Templeton Investments and OppenheimerFunds Inc. asked the U.S.
Puerto Rico in Distress
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Puerto Rico Governor Alejandro Garcia Padilla unveiled a bankruptcy-like process for some public corporations to restructure their debts yesterday in a fresh bid to shore up the U.S. territory's deteriorating finances, Reuters reported yesterday.
The Department of Justice said that GE Capital Retail Bank, a division of General Electric, excluded tens of thousands of Spanish-speaking credit card customers from a debt-reduction program it ran for two years, a pattern of discrimination that will cost the bank $169 million in fines, the Washington Post reported today.
Puerto Rico’s fiscal agent has hired another well-known restructuring law firm, raising the specter that the financially troubled island is preparing to revamp its finances, the New York Times DealBook blog reported yesterday. The Government Development Bank for Puerto Rico, which oversees all of the commonwealth’s debt deals, said it had hired Cleary Gottlieb Steen & Hamilton.