Banks That Sold Puerto Rico Bonds Are Facing Their Own Robert Mueller

Five years after the Puerto Rico bond market collapsed, ruining the retirement and life savings of thousands of retail investors, investigators are likely to place much of the blame on the big banks who underwrote  and sold the bonds to Mom and Pop clients. According to recent news reports, an independent investigator has been hired by Puerto Rico’s Financial Oversight and Management Board to investigate policies that contributed to the island’s debt crisis. The investigators have not only interviewed witnesses but have also issued subpoenas to three banks—UBS, Banco Santander and Banco Popular. The independent investigation of Puerto Rico’s $74 billion debt crisis will be a comprehensive look at the borrowing that pushed the island into its record-setting bankruptcy, according to the executive director of the FOMB. “It’s going to be as broad as can be,” Natalie Jaresko, the board’s executive director, said in an…

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