Report No. 58: Pain and Profit After Maria

22 May 2018
Pain and Profit After Maria Companies Taking Puerto Rico by $torm Five months after Hurricane Maria, and amid a continuing austerity crisis, conditions in Puerto Rico remain dire. More than 1,000 people died from the hurricane, although the official estimate is only 64. The government of Puerto Rico estimates that another 200,000 people (about 5 percent of the population) could leave the island by the end of 2018, adding to the massive wave of out-migration over the past decade.[1] A quarter of the population stills lacks electricity.[2] Relief efforts have been marked by corruption.... Read More
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REPORT NO. 56: CALIFORNIA HEDGE FUNDS AND THEIR BILLION-DOLLAR TAX LOOPHOLE

16 Apr 2018
CALIFORNIA HEDGE FUNDS AND THEIR BILLION-DOLLAR TAX LOOPHOLE Simply stated, the carried interest loophole is the mistreatment of hedge fund and private equity fees as capital gains, rather than ordinary income.... Read More
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REPORT NO. 54 Hurricane Harvard and the Damage Done to Puerto Rico: How the University’s Endowment Investment Harms the Island

23 Jan 2018
Introduction Four months after Hurricane Maria, nearly half of Puerto Rico is still without electricity. The poverty rate is 46 percent, and even more – 58 percent – for children.[1] Over 80% of Puerto Rico’s agricultural crop value – around $780 million – was destroyed by the hurricane.[2] Its healthcare system, already facing austerity cuts, is in a state of crisis.[3] Damage could top $30 billion for an island that hasn’t seen economic growth for a decade.[4] All this comes on top of incessant demands for more cuts to education, pensions, and other social goods.... Read More
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Robin Hood Puerto Rico Vultures

20 Oct 2017
PUERTO RICO VULTURE: SETH KLARMAN Baupost Group, CEO   Holds $911 million in PR COFINA bonds Biggest bondholder in austerity lawsuit Hid vulture holdings in secret shell companies OFFICE:  10 SAINT JAMES AVE BOSTON HOME:  329 HEATH STREET CHESTNUT HILL MA $1.5 billion personal fortune Drove mass austerity in Greece, pay cuts in NYC Big investor in dirty fossil fuels & fracking Rigs political system to privatize schools & cut his own taxes PUERTO RICO VULTURE: PAUL TUDOR JONES Tudor Investment Corp.... Read More
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Partner Paper No. 5: The Looting of Puerto Rico’s Infrastructure Fund: Carlos M. Garcia’s destructive fiscal policies hurt Puerto Rico once, could it happen again?

16 May 2017
DOWNLOAD SPANISH VERSION HERE Executive Summary Carlos M. Garcia is profoundly conflicted as a former Santander[i] banking executive in his current role on the PROMESA control board, or the “Junta.” In the years preceding Governor Luis Fortuño’s election in 2008, Garcia built Santander Securities—the bank’s municipal bond business—while Jose Ramon Gonzalez, another Junta member, was at the head of the bank.[ii] With Fortuño’s election, Garcia was given vast powers over fiscal policy as President of the Government Development Bank (“GDB”), Chair of the local control board (a special board comprised of five cabinet-level officials with ministerial responsibility for Puerto Rico’s fiscal matters and restructuring powers conferred by the Puerto Rico Legislature), and head of Puerto Rico’s new Public Private Partnerships Authority (PPPA).[iii] A previous report, Pirates of the Caribbean, documented the role Garcia and Santander played in Puerto Rico’s public finance disaster and the virtual revolving door former bank executives had with the GDB from 2009 to 2012.... Read More

UPDATE #HedgePapers No. 26 – Puerto Rico: Pain and Profit

21 Mar 2017
UPDATE: After years of crisis and austerity that have resulted in a poverty rate of 45 percent, it’s hard to imagine that conditions could get much worse for the people of Puerto Rico. But if the island’s bondholders have their way, that’s exactly what’s going to happen. Puerto Rico is facing a new round of draconian budget cuts that promise to intensify the hardships that the population is already facing.... Read More

UPDATE: Pirates of the Caribbean: How Santander’s Revolving Door with Puerto Rico’s Development Bank Exacerbated a Fiscal Catastrophe for the Puerto Rican People

13 Dec 2016
UPDATE: Carlos García Fails to Report CommoLoCo in Financial Disclosure García’s business makes small loans to desperate Puerto Ricans at extremely high interest rates The following is an update concerning the business interests and apparent conflicts of Carlos García, who is serving as a board member of the Financial Oversight and Management Board for Puerto Rico (aka “Fiscal Control Board,” “Junta”).... Read More

#HedgePapers No. 24 – Puerto Rico Hedge Fund Vulture Holdouts

3 Nov 2015
Los Tiranos, Los Vampiros, y El Terminator (The Tyrants, the Vampires, and the Terminator) The Puerto Rican debt crisis has recently reached a new stage in negotiations between the government and its bondholders: deals have been reached with many creditors and ad hoc groups have fallen apart, but several creditors are continuing to hold out, intending to squeeze massive profits out of a Puerto Rico on the brink.... Read More
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Open Letter: Antonio Weiss Must Recuse From Treasury’s Puerto Rico Debt Crisis Response

24 Sep 2015
September 23, 2015 Antonio Weiss Counselor to the Secretary United States Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220 Dear Counselor Weiss: On behalf of the 13 undersigned national and community organizations, representing more than 9 million Americans, we are writing to ask you to recuse yourself from all Treasury activities relating to the debt crisis of the Commonwealth of Puerto Rico.... Read More
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#HedgePapers No. 21 – The Antonio Weiss Files: Vultures, Bribes & Conflicts of Interest in Puerto Rico

24 Sep 2015
Antonio Weiss must be recused from decisions on the Puerto Rico crisis Treasury official Antonio Weiss is currently leading the Treasury Department’s response to the Puerto Rico debt crisis. But Weiss received a $21,200,000 golden parachute from his previous employer, Lazard Frères, an investment bank with numerous ties to the Puerto Rico debt crisis.... Read More
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