Puerto Rico was dealt another setback by The Supreme Court on Monday after the highest court denied the Commonwealth’s effort to restructure more than $20 billion of its massive $72 billion debt. Justice Clarence Thomas wrote the 5-2 ruling which now places the fate of Puerto Rico’s economic troubles in the hands of Congress, which is attempting to remedy the island’s precarious fiscal situation. The Obama administration supported a House measure that was passed last week which would give Puerto Rico restructuring authority, which is currently pending in the Senate. The Supreme Court decision was the second setback received by the Commonwealth in the past weeks, as the court ruled that Puerto Rico was not sovereign with respect to the double jeopardy clause. The effect of the decision, in essence, eliminated Puerto Rico’s ability to try citizens who have already been tried in federal court.
Founding Partner, KlaymanToskes
Lawrence L. Klayman
Managing and founding partner at KlaymanToskes. Former Wall Street securities broker with decades of experience representing high‑net‑worth and institutional investors nationwide. Has recovered over a quarter‑billion dollars for aggrieved investors and is frequently quoted in leading financial publications, including The Wall Street Journal, The New York Times, and Barron’s.
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