Thursday, September 1, 2016

The Empire Takes Control:Puerto Rico’s Oversight Panel is Here

The Obama administration named seven people to serve on a financial control board overseeing the restructuring of Puerto Rico’s debt burden,.

The three Democrats and four Republicans were chosen by the White House from a list provided by congressional leaders from both parties, with President Barack Obama consulting with Democrats.

The board was created as part of legislation signed into law by Obama in June that shields the island from bondholder lawsuits as it works on a plan to repair its finances.

The Democrats on the panel are: Arthur Gonzalez, a senior fellow at New York University’s School of Law and former Chief Judge of the U.S. Bankruptcy Court for the Southern District of New York; Jose Ramon Gonzalez, president and chief executive officer of the Federal Home Loan Bank of New York; and Ana Matosantos, who served as California’s budget director from 2009 to 2013.

The Republicans are: Carlos Garcia, former president of Puerto Rico’s Government Development Bank and founder and chief executive officer of BayBoston Managers LLC, a minority-owned private equity firm; Andrew Biggs, a resident scholar at the American Enterprise Institute; David Skeel, a University of Pennsylvania law professor; and Jose Carrion III, co-founder of Carrion, Laffitte & Casellas Inc.

Puerto Rico’s government has a $69 billion debt burden.

The board has broad authority to approve budgets, privatisations and public sector lay-offs.


(Sources: Bloomberg, Financial Times)

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