Americans for Limited Government President Rick Manning issued the following statement praising U.S. Reps. Sean Duffy (R-Wis.), Raul Labrador (R-Idaho), and Rob Bishop (R-Utah) for their work on legislation restructuring Puerto Rico’s $72 billion debt:
“Often times members of Congress don’t get praised when they do the hard work on behalf of the American people to protect their interests. On the legislation restructuring Puerto Rico’s unsustainable $72 billion debt, U.S. Reps. Sean Duffy, Rob Bishop and Raul Labrador deserve a great deal of credit for protecting taxpayers from bailing out creditors who bet poorly on Puerto Rican debt. If the House had not acted with legislation, defaults would have mounted and pressure would have built for a taxpayer-funded bailout.
“Thanks to the House’s hard work and due diligence, led by Duffy, Bishop and Labrador, the legislation guarantees unsecured bondholders cannot cut in line in any debt restructuring and that restructuring will be mandatory when there are no other funds to pay debts, and when no other voluntary arrangement can be reached. The thoughtful process put in place by the House legislation shows how Congress has matured since 2008, and now is an institution that stands against taxpayer bailouts. We urge the House to carry that same temperament into other areas when investors make bad bets on securities of any kind, and that members will continue to protect taxpayers from socializing investor losses.”