Velázquez, Torres, and Warren Press Warsh on Ties to Hedge Fund Profiting from Puerto Rico Debt Crisis
May 14, 2026
WASHINGTON, D.C. — Today, Congresswoman Nydia M. Velázquez (D-NY), Congressman Ritchie Torres (D-NY), and Senator Elizabeth Warren (D-Mass.) sent a letter to newly confirmed Chair of the Federal reserve Kevin Warsh ahead of his swearing in demanding answers about his longtime consulting role at GoldenTree Asset Management, the hedge fund behind some of the most aggressive distressed debt actions in Puerto Rico's bankruptcy.
“The company was described as the primary objector to debt restructuring negotiations on behalf of the Puerto Rican government that aimed to reduce PREPA's bond debt and minimize energy costs for residents,” the lawmakers wrote. “You were recently asked to clarify your role in advising GoldenTree on its purchases of distressed Puerto Rican bonds, as well as your opinion on whether the people of Puerto Rico or Wall Street creditors should be prioritized. You failed to provide a clear answer and instead stated that you 'provided general commentary on macroeconomic trends' in your role as consultant.”
In his federal ethics report, Warsh disclosed that he has worked as a consultant for GoldenTree since 2011. During that period, GoldenTree held more than $850 million in distressed Puerto Rican bonds and was described as “an optimistic vulture circling Puerto Rico.”
The lawmakers are requesting that Warsh respond with the following:
· A description of the nature of all consulting work performed for GoldenTree since 2011
· Clarification on whether any "general commentary" touched on Puerto Rico or Puerto Rican debt
· Disclosure of any involvement in GoldenTree's investments in Puerto Rico, including its distressed debt business
· Copies of all correspondence with GoldenTree employees since 2011 referencing PREPA, Puerto Rico, PR, or the Puerto Rico Electric Power Authority
The full letter is available here.
“The company was described as the primary objector to debt restructuring negotiations on behalf of the Puerto Rican government that aimed to reduce PREPA's bond debt and minimize energy costs for residents,” the lawmakers wrote. “You were recently asked to clarify your role in advising GoldenTree on its purchases of distressed Puerto Rican bonds, as well as your opinion on whether the people of Puerto Rico or Wall Street creditors should be prioritized. You failed to provide a clear answer and instead stated that you 'provided general commentary on macroeconomic trends' in your role as consultant.”
In his federal ethics report, Warsh disclosed that he has worked as a consultant for GoldenTree since 2011. During that period, GoldenTree held more than $850 million in distressed Puerto Rican bonds and was described as “an optimistic vulture circling Puerto Rico.”
The lawmakers are requesting that Warsh respond with the following:
· A description of the nature of all consulting work performed for GoldenTree since 2011
· Clarification on whether any "general commentary" touched on Puerto Rico or Puerto Rican debt
· Disclosure of any involvement in GoldenTree's investments in Puerto Rico, including its distressed debt business
· Copies of all correspondence with GoldenTree employees since 2011 referencing PREPA, Puerto Rico, PR, or the Puerto Rico Electric Power Authority
The full letter is available here.
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