{"id":3722,"date":"2016-09-06T18:29:28","date_gmt":"2016-09-06T23:29:28","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/?p=3722"},"modified":"2022-03-10T16:37:24","modified_gmt":"2022-03-10T22:37:24","slug":"president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/","title":{"rendered":"President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis"},"content":{"rendered":"<p>\t\t\t\tThe White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. The appointees, named by President Obama, include: Jose Ramon Gonzalez (Federal Home Loan Bank of NY CEO\/President), Arthur Gonzalez (Ex-bankruptcy Judge), Ana Matosantos (Ex-California Dept. of Finance Director), Carlos Garcia (Ex-Puerto Rico Government Development Bank president and CEO\/Founder of BayBoston Managers LLC), Jose Carrion III (Puerto Rico insurance executive), Andrew Biggs (Scholar) and David Skeel (University of Pennsylvania Law Professor). Three of these board member are Democrats, four are Republicans. The eighth member of the board is Puerto Rico\u2019s governor Alejandro Garcia Padilla. He is an automatic member because of his position but does not have a vote.<\/p>\n<p>The creation of the federal control board was part of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The legislation was passed by the U.S. Congress to help the U.S. territory with its financial woes. Puerto Rico has been defaulting on its debt payments that have been due. Just last week, the Government Development Bank of Puerto did not pay almost $10 million of interest that was due on it outstanding bonds. According to a recent report by the ReFund America Project, which has been investigating the U.S. territory\u2019s debt, approximately $1.6 billion of the island\u2019s debt are the fees earned by Wall Street firms, such as <a href=\"https:\/\/www.investorlawyers.com\/citigroup-background-information.html\">Citigroup (C)<\/a>, <a href=\"https:\/\/www.investorlawyers.com\/ubs-painewebber-background-information.html\">UBS (UBS)<\/a>, Barclays Capital (BARC), and Goldman Sachs (GS). Even worse, the ReFund America Project said that about $323 million of the money paid to Wall Street firms was for \u201cscoop and toss\u201d deals involving UBS as the main underwriter.<\/p>\n<p>The report also stated that close to half of the $134 million in debt Puerto Rico and its public corporations have issued over the last 16 years is refunding debt. Puerto Rico\u2019s financials purportedly show that the territory had been putting out new refunding bonds to pay back bonds that had been issued earlier. The use of refunding bonds to delay current debt payments for later is what is involved in \u201cscoop and toss\u201d financing.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/#more-3722\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. The appointees, named by President Obama, include: Jose Ramon Gonzalez (Federal Home Loan Bank of NY CEO\/President), Arthur Gonzalez (Ex-bankruptcy Judge), Ana Matosantos (Ex-California Dept. of Finance Director), Carlos Garcia (Ex-Puerto Rico [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3922,4039,1],"tags":[],"class_list":["post-3722","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds","category-puerto-rico-bond-funds","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis &#8212; Investor Lawyers Blog &#8212; September 6, 2016<\/title>\n<meta name=\"description\" content=\"The White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. The appointees, named &#8212; September 6, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis &#8212; Investor Lawyers Blog &#8212; September 6, 2016\" \/>\n<meta name=\"twitter:description\" content=\"The White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. The appointees, named &#8212; September 6, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis &#8212; Investor Lawyers Blog &#8212; September 6, 2016","description":"The White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. The appointees, named &#8212; September 6, 2016","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/","twitter_card":"summary_large_image","twitter_title":"President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis &#8212; Investor Lawyers Blog &#8212; September 6, 2016","twitter_description":"The White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. The appointees, named &#8212; September 6, 2016","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis","datePublished":"2016-09-06T23:29:28+00:00","dateModified":"2022-03-10T22:37:24+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/"},"wordCount":629,"articleSection":["Municipal Bonds","Puerto Rico Bond Funds"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/","url":"https:\/\/www.investorlawyers.com\/blog\/president-obama-appoints-federal-control-board-members-deal-puerto-ricos-debt-crisis\/","name":"President Obama Appoints Federal Control Board Members to Deal With Puerto Rico\u2019s Debt Crisis &#8212; Investor Lawyers Blog &#8212; September 6, 2016","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2016-09-06T23:29:28+00:00","dateModified":"2022-03-10T22:37:24+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The White House has appointed seven people to the Fiscal Control Board tasked with helping Puerto Rico deal with its $70B of debt. 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