Unlike Greece, Puerto Rico won’t be able to voluntarily surrender its sovereignty in exchange for a little help easing its burden from its local central bank. It’ll just have to let its colonial overseers and the hedge funds do that for it.
Federal Reserve Chairwoman Janet Yellen on Wednesday said the central bank “can’t and shouldn’t be involved in” Puerto Rico’s municipal debt crisis, leaving any potential government intervention to Congress…Ms. Yellen said she had no informed judgment on the best course of action for the island, though she maintained that it is best the Fed doesn’t step in as a creditor to any state or municipality.
Fed ‘Can’t and shouldn’t’ Step Into Puerto Rico Financial Crisis [WSJ Real Time Economics blog]
Puerto Rico Closer to Default After Missed Funds Transfer [Bloomberg]
ECB Raises Emergency Lending to Greek Banks [WSJ]