A Liberal Bailout For Puerto Rico Takes Shape In A Conservative Congress

President Obama and Treasury Secretary Jack Lew have a handful of so-called “conservatives” to thank for advancing their signature Chapter 9 bailout bill for Puerto Rico through the Natural Resources Committee.

The “Puerto Rico Oversight, Management, and Economic Stability Act” is a collection of liberal policies intended to solve the Commonwealth’s self-inflicted debt crisis, which will hurt retirement savers who own Puerto Rico bonds.

Many key provisions in the bill have been championed for months by members of President Obama’s inner circle, including Chapter 9 bankruptcy and an unprecedented legal stay that will take away the rights of bondholders to go to court if Puerto Rico stops paying them.



Democrats on the committee were even able to include language that will allow government pensions to be funded with money that was promised to bondholders when they loaned their savings to Puerto Rico’s government.

Gov. Jan Brewer

Former Governor of Arizona

A Liberal Bailout For Puerto Rico Takes Shape In A Conservative Congress