SIFMA AMG Supports Congressional Action to Address the Puerto Rico Municipal Market
Release Date: May 24, 2016
Contact: Liz Pierce, 212-313-1173, [email protected]
SIFMA AMG Supports Congressional Action to Address the Puerto Rico Municipal Market
Washington, D.C., May 24, 2016– The Asset Management Group of SIFMA (SIFMA AMG), whose members are U.S. asset management firms who serve millions of individual and institutional investors, today released the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, in support of H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) introduced by the House Committee on Natural Resources and sponsored by Rep. Sean Duffy (R-WI):
“SIFMA’s Asset Management Group supports H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), and appreciates Congress’ efforts to create a limited and targeted framework to address Puerto Rico’s fiscal crisis. We commend the House Committee on Natural Resources for their leadership on this important issue.
“Specifically, SIFMA AMG supports the establishment of a federal oversight board with broad powers to enforce and monitor fiscal discipline, and a restructuring framework that is based on the Territorial Clause of the U.S. Constitution.Further, SIFMA AMG supports Congressional efforts to ensure that a newly-established oversight board will treat creditors fairly and protect valid and legal liens during the restructuring process.These provisions constitute practical ways to aid Puerto Rico’s economic recovery, improve the island’s financial position and prevent Puerto Rico’s situation from leading to higher permanent borrowing costs for other municipal issuers.”
SIFMA AMG members represent U.S. asset management firms whose combined assets under management exceed $30 trillion. The clients of AMG member firms include, among others, registered investment companies, endowments, state and local government pension funds, private sector Employee Retirement Income Security Act of 1974 (“ERISA”) pension funds, and private funds such as hedge funds and private equity funds.