October 4, 2017

Trump hints Puerto Rico's debt may be wiped out; Mulvaney denies it

Political Wire - “President Trump suggested that the government debt accumulated by bankrupt Puerto Rico would need to be wiped clean to help the island recover from the devastation caused by Hurricane Maria,” Bloomberg reports.

Said Trump:  “We are going to work something out. We have to look at their whole debt structure. You know they owe a lot of money to your friends on Wall Street. We’re gonna have to wipe that out. That’s gonna have to be — you know, you can say goodbye to that. I don’t know if it’s Goldman Sachs but whoever it is, you can wave good-bye to that.”

Washington Post - President Trump’s vow Tuesday to wipe out Puerto Rico’s massive debt issues was quickly dismissed by White House budget director Mick Mulvaney, revealing how senior administration officials continue to struggle for ways to respond to the U.S. territory’s financial problems.

Those comments would have sweeping implications, as it could wipe out the holdings of numerous investors who hold Puerto Rican debt.

On Wednesday morning, Mulvaney said he had discussed the issue with Trump on the flight back to Washington late Tuesday and that the debt would not be wiped out after all.

“I wouldn’t take it word for word with that,” Mulvaney said on CNN

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