Velazquez on Puerto Rico Oversight Board Decision to Not Recoup Fees on Invalid Debt

Washington, DC – Rep. Nydia M. Velazquez (D-NY) released the following statement regarding news that the Federal Oversight Management Board for Puerto Rico is declining to pursue legal action to recoup fees on bonds that were previously found to be issued unconstitutionally:

"It is inexplicable that the Board would not at least attempt to collect some of the fees that were paid out to Wall Street on debt the Board itself acknowledges shouldn't have been issued in the first place. In effect, the Board is leaving on the table money that could fund important social services on the Island. This is an appalling abdication of duty. Congress has an important oversight role to play here and I will be pressing the Board for answers in coming weeks.

"Additionally, it is my understanding that some holders of unsecured debt may pursue separate legal action on this matter. I would welcome such a step. This is not over."

Velazquez previously led seventeen Members of the U.S. House and Senate in writing to the Oversight Board to urge that it recover fees provided to banks and other advisors on extra-constitutionally issued bonds. That letter is online here.

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