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Bloomberg's House on Puerto Rico Restructuring Debt Bill(Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleventh, Brio to Washington,
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  Speaker 1: Bloomberg got gone. This is taking stock, coming upon taking stock.
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  Speaker 1: We're going to take stock of Puerto Rico. House Republicans
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  Speaker 1: have reached an agreement with the Obama administration in order
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  Speaker 1: to provide Puerto Rico with a path to restructure it's
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  Speaker 1: seventy billion dollars worth of debt. That will be the
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  Speaker 1: first step towards ending a decade long recession in the
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  Speaker 1: island Commonwealth. And we're also going to take a look
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  Speaker 1: at the stock market under pressure today is traders and
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  Speaker 1: investors contemplate the possibility of a June rate hike by
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  Speaker 1: Charlie Pellett has a Bloomberg business. Lael, all right, thank
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  Speaker 1: you very much. Kathleen Hayes, thank you, Phim Fox stock
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  Speaker 1: across the business in response to a revenue slump. This
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  Speaker 1: according to people with knowledge of the situation. New York
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  Speaker 1: Fed President Bill Dudley says the Federal Reserve is moving
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  Speaker 1: closer to raising interest rates at one of its next
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  Speaker 1: to financial markets is welcome news. The tenure up to
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  Speaker 1: point five percent, Gold down nine fifty now a drop
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  Speaker 1: of one and a half percent, And at three thirty
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  Speaker 1: and the search and rescue teams are now uh it's
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  Speaker 1: turning into a search and recovery. French President Francois Olan,
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  Speaker 1: Bloomberg News Room, I'm David Gura, Charlie, and we thank you,
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  Speaker 1: and again recapping a move law for US equities. The
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  Speaker 1: SMP five hundred index down nine now a drop of
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  Speaker 1: five tenths of one percent. I'm Charlie Pellett, and that's
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  Speaker 1: a Bloomberg Business Flash. This is taking Stock with Kathleen
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  Speaker 1: Hayes and Pin Fox on Bloomberg Radio. Can it be
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  Speaker 1: a breakthrough in the deadlock over Puerto Rico's debt between
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  Speaker 1: House Republicans and the Obama administration. Well, let's just find out.
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  Speaker 1: From Billy House from Bloomberg Politics, Bloomberg News. He's joining
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  Speaker 1: us from Washington, d C. This is a story he's
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  Speaker 1: been covering very closely. In fact, I just tweeted out
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  Speaker 1: the story he co wrote with Laura Litvan at House
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  Speaker 1: in session. Welcome to taking stock. Good afternoon, So what's
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  Speaker 1: going on, what's in the deal, and does it look
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  Speaker 1: like this time this is something that's really going to pass? Well,
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  Speaker 1: the boat counting begins. So the latter question there is
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  Speaker 1: is still up to two mendual members to decide how
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  Speaker 1: they're going to go on this latest rewrite of a
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  Speaker 1: bill to rescue Puerto Rico from its financial crisis. It's
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  Speaker 1: this bill, like the previous one, creates an oversight board
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  Speaker 1: UH and also creates a restructuring process for the island
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  Speaker 1: seventy billion dollar in debt debt UH. So it's it's
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  Speaker 1: brand new. It was dropped right before UH midnight, introduced
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  Speaker 1: in the House, and all the the Treasures Department, along
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  Speaker 1: with top House leader Speaker Paul Ryan in the top
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  Speaker 1: Democrat Nancy Pelosi have signed off on that. Now. Of course,
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  Speaker 1: as we've seen in the past, will rank and file
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  Speaker 1: members join in cryan support of this as outside groups
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  Speaker 1: still called the bill out billy have they? The lawmaker
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  Speaker 1: has been able to figure out how to handle the
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  Speaker 1: appointments to that seven member board that's supposed to oversee
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  Speaker 1: Puerto Rico's finances. Well, yeah, that's that's absolutely was one
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  Speaker 1: of the hang ups in the last few weeks, even
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  Speaker 1: involving constitutional questions about whether the administration or the White
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  Speaker 1: House could be to congressional appointees and vice versa. What
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  Speaker 1: they've come up with as an elaborate system where there's
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  Speaker 1: categories of the board number seven and which they have
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  Speaker 1: overlapping rights and authority and different ways they can be
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  Speaker 1: appointed or blocked. But it's a cat home of rules.
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  Speaker 1: But they think they finally gotten that Reich cube that
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  Speaker 1: will allow it to be passed. So this bill is
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  Speaker 1: already of your story points out being perhaps at least
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  Speaker 1: objections are being raised. Rather it means that he's going
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  Speaker 1: to vote against it. You quote a Representative John Fleming,
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  Speaker 1: a Louisiana Republican, he's a member of the ultra conservative
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  Speaker 1: House Freedom Caucus, saying they have to consider whether Congress
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  Speaker 1: will hold these states and territories responsible for their obligations
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  Speaker 1: at cetera. And I guess what this is when I'm
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  Speaker 1: really driving out is the politics, because it's it's encouraging
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  Speaker 1: to see any kind of bill, you know, emerging now
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  Speaker 1: in the midst of this heated presidential race, and they're
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  Speaker 1: important races in the House and Senate as well, that
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  Speaker 1: could get a problem that's been festering for some time solved,
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  Speaker 1: is that when you hear from someone like Fleming, is
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  Speaker 1: he just posturing for the folks at home. Well that's
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  Speaker 1: a good point. Uh. First of all, the back as
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  Speaker 1: a campaign here, as you point out, and the backdrop
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  Speaker 1: is also that some outside groups worried about their classifications
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  Speaker 1: of bonds or whatever, how they might be prioritized or
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  Speaker 1: bumped down in this restructuring process, will turn out that
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  Speaker 1: they are ads. They are running ads. In the past,
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  Speaker 1: they've classified this bill as a bailout. Now, Speaker Paul
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  Speaker 1: Ryan that will have the task of convincing his rank
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  Speaker 1: and file members two come to the realization. At least,
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  Speaker 1: he argues, this is no way a bill out, no
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  Speaker 1: tax fair money will be used, and you have the
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  Speaker 1: political courage to vote for something he says, is absolutely
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  Speaker 1: necessary for the territory. UH already the House Freedom Practus,
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  Speaker 1: which of course was the the group that was always
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  Speaker 1: UH in in conflict with previous Speaker John Bayner says
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  Speaker 1: it is not ready to commit to this new bill.
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  Speaker 1: But to be fair, the chairman Jim's Or in Ohio
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  Speaker 1: says that he has not read the new bill yet
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  Speaker 1: and he's withholding his judgment. Billy, the sort of battle
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  Speaker 1: that that goes on, it's because the island is spending
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  Speaker 1: a third of its revenue servicing its debt. Does this
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  Speaker 1: agreement do anything to alleviate the pressure on the economy, Well,
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  Speaker 1: it does it, uh. First of all, it will it
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  Speaker 1: provides a short stay of any litigation from creditors to
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  Speaker 1: otherwise go outside of this deal to to to get paid.
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  Speaker 1: That that's a brief rest. It lasts toll at least
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  Speaker 1: February of next year. And now, of course that would
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  Speaker 1: be just a month after the elections of a new
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  Speaker 1: governor or governor at the same time. This, uh, this
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  Speaker 1: will allow categories of creditors to decide whether as a group,
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  Speaker 1: if enough of im agree to accept a prioritization scheme
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  Speaker 1: or some sort of uh you know, haircut. Uh. So
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  Speaker 1: it's all those were combined with other financial oversight uh
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  Speaker 1: benefits at least in the view of the bill riders,
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  Speaker 1: that could help aid the territories government to to kind
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  Speaker 1: of wade through what it can on this enormous, enormous pressure.
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  Speaker 1: It's it's same. Thank you very much for spending time
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  Speaker 1: with us and clarifying the situation. Billy House, House, reporter
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  Speaker 1: on our congressional team for Bloomberg News, coming to us
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  Speaker 1: from the capital in Washington, d C. Home to Bloomberg
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  Speaker 1: one and one oh five point seven h D two
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  Speaker 1: in the Washington metro area. Talking about Puerto Rico and
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  Speaker 1: House Republicans and the Obama administration reaching an agreement on
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  Speaker 1: restructuring Puerto Rican debt? Is it time to buy Apple? Google? Facebook?
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  Speaker 1: Keep it right here on Bloomberg Radio, we're gonna be
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  Speaker 1: speaking with Loo Pianta Dosi from Eating Vance. He's added
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