Puerto Rico

The Financial Industry Regulatory Authority ordered San Juan-based Santander Securities on Tuesday to pay $6.4 million for supervisory failures related to Puerto Rican municipal bonds.

The board of directors of the Puerto Rico Electric Power Authority has given the green light to possible rate increases, according to reports in the Puerto Rico press.

Resident Commissioner Pedro Pierluisi, D-P.R., has introduced a bill that would authorize the Treasury Department to guarantee future bonds issued by Puerto Rico and its authorities if it finds they have meaningfully improved the management of their finances.

The Puerto Rico Electric Power Authority’s financial performance was worse than expected in July and August.

In the midst of a spate of municipal bankruptcies and a credit crisis in Puerto Rico, a report from Kroll Bond Rating Agency highlighted a divergence among the credit rating services.

The Government Development Bank for Puerto Rico sued a tax collection body to hand over $400 million, some of which is for payments on bonds insured by Assured Guaranty.

Six advocacy groups are urging two key Senate Republicans to keep Congress from providing Puerto Rico with access to Chapter 9 bankruptcy protection.

Retired Detroit bankruptcy Judge Steven Rhodes and three House members will participate in a two-day meeting in Florida later this month to come up with some solutions to address Puerto Rico’s fiscal and health care crises.

The top Democrat on the House Natural Resources Committee is urging the committee chair to hold a hearing to “cast a spotlight” on the “gross inequity” hedge funds holding Puerto Rico debt are imposing on the commonwealth’s citizens.

The decision is a setback for National Public Finance Guarantee’s efforts to cut its losses in the island’s power utility debt restructuring.

Puerto Rico introduced a 4% professional services and business to business tax to increase revenue amid the commonwealth’s liquidity crisis.

Key Senate Republicans made clear during a Senate Finance Committee hearing on Tuesday that they do not intend to move forward with bills providing Chapter 9 bankruptcy protection for Puerto Rico’s authorities and instead want more information on the territory’s struggling finances and $71 billion of debt as well as how to fix them.

Tight liquidity is a bigger problem than high debt for Puerto Rico’s government, Cumberland Advisors vice president Michael Comes said Tuesday.

Puerto Rico's government defended itself against a claim that it overstated anticipated cash shortfalls by $8.4 billion in the next five fiscal years.

Rep. Nydia Velázquez wants to extend protections under the Investment Company Act of 1940 to Puerto Rico, saying their absence caused Puerto Ricans to suffer losses when they invested in mutual funds heavily stocked with the financially struggling commonwealth’s bonds.

Sen. Orrin Hatch, R-Utah, has announced four invited speakers who bring varying views on the merits of Chapter 9 bankruptcy protection in Puerto Rico for Tuesday’s House Finance Committee hearing on the commonwealth’s fiscal health in light of its $71 billion in debt.

Puerto Rico’s economic activity index went down in July but bounced back up in August.

Puerto Rico’s increased oil tax is providing some help to its Government Development Bank, which may help ease an anticipated November cash shortfall for the government.

The Senate Finance Committee will hold a hearing on Sept. 29 to discuss the “dire financial situation” in Puerto Rico, committee chair Sen. Orrin Hatch, R-Utah, said Tuesday.

The Puerto Rico Electric Power Authority reached a debt restructuring agreement with its lines of credit lenders Tuesday afternoon.