Justices seem likely to uphold Puerto Rico oversight board
WASHINGTON (AP) — The Supreme Court seems likely to leave in place the oversight board established by Congress in response to Puerto Rico’s financial crisis.
The justices voiced skepticism Tuesday of a constitutional challenge to the oversight board’s composition. Hedge funds that invested in Puerto Rican bonds are leading the case against the board.
A lower court has ruled that board members were appointed in violation of the Constitution because they were not confirmed by the Senate. The board approves budgets and fiscal plans drawn up by the island’s government. It also handles bankruptcy-like cases that allow the island to restructure its debts.
Justice Samuel Alito asked facetiously if it’s “excessively cynical” to think that the hedge funds were more interested in the money at stake than the constitutional challenge they are mounting.