Trump Could Push the Justice Department Into Puerto Rico’s Debt Fight
- Instead of a bailout, Trump could try to join court battle
- Island’s status as a U.S. territory may provide an opening
Palmer Says Law Will Prevail on Puerto Rico Bonds
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After President Donald Trump said Puerto Rico’s debt will be wiped out, White House officials rushed to rule out any U.S. bailout of bondholders, who lent the commonwealth about $74 billion.
But Trump, who used bankruptcy to restructure billions owed by his former businesses, has other ways to insert the federal government into one of the most complicated insolvency cases ever filed in a U.S. court.