RYNO Ryan Proposes Confiscation of Puerto Rico Bondholders’ Investments

Ryan Pushes Puerto Rico Bondholder Cram Down

House Speaker Paul Ryan (R-WI) [RINO #1, 56% Conservative Rating] wants Congress to pass a law that would cause Puerto Rico bondholders who own $73 billion in notes from the territory’s government to be treated the same way the federal government treated Chrysler bondholders back in 2008 and 2009.

Friday morning, Ryan addressed a special meeting of the GOP caucus to attempt to persuade recalcitrant conservatives the cram down is a good idea.

If the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) Rep. Sean Duffy (R-WI) [RINO #2] 52% has sponsored and Ryan supports becomes law, Puerto Rico would use the special dispensation provided the territory in the bill to force bondholders to accept pennies on the dollar prior to or during a bankruptcy filing.

As George Mason University professor Todd Zywicki and the Heritage Foundation’s Ja

Rep. Sean Duffy (R-WI) 52% has sponsored and Ryan supports becomes law, Puerto Rico would use the special dispensation provided the territory in the bill to force bondholders to accept pennies on the dollar prior to or during a bankruptcy filing.

As George Mason University professor Todd Zywicki and the Heritage Foundation’s James Sherk wrote of the Chrysler bondholder cram down:

In bankruptcy, the secured status of these bonds should have meant that the secured creditors would be paid in full before any money was allocated to subordinate creditors, such as the UAW’s VEBA plans. Instead, the plan imposed by the government forced Chrysler’s secured creditors to accept only 29 cents on the dollar, while the UAW recovered most of the value of its claims.

See more @ http://www.breitbart.com/big-government/2016/04/15/speaker-ryan-pushes-puerto-rico-bondholder-cram-conservatives-gop/

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Published in: on April 15, 2016 at 2:55 pm  Leave a Comment  

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