Puerto Rico Sued by Third Bond Insurer to Halt Revenue Raid

  • FGIC seeks to end the revenue diversion that spurred default
  • Suit follows similar ones by Ambac and Assured Guaranty

Financial Guaranty Insurance Co. sued Puerto Rico’s top officials for raiding revenue earmarked for government agency bonds as the island rapidly runs out of cash, a step that pushed it to default this month on securities the company insures.

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