Feds Offer Puerto Rico Advice, But No Bailout
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Investors wondering about the U.S. government’s role in the Puerto Rican debt crisis are hearing echoes of Detroit.
In 2013, lawmakers opposed a federal bailout of the auto-producing hub, and the Obama administration didn’t step in to prevent the largest municipal bankruptcy in U.S. history, in July of that year. The Treasury has a similar no-rescue approach with the Caribbean island beset by unsustainable debt.