While the Governor called for the state fund to divest from fossil fuels, he’s been silent on its investments in Puerto Rican debt 

The Governor has taken hundreds of thousands in donations from the hedge funds responsible for Puerto Rico’s debt crisis

NEW YORK, NY – As the Governor and a delegation of New York elected officials travel to Puerto Rico, Democratic gubernatorial candidate Cynthia Nixon and former City Council Speaker Melissa Mark-Viverito called for the state to divest from funds managed by firms that hold Puerto Rican debt. The debt crisis is devastating the island’s economy and is making the recovery from Hurricane Maria all the more difficult.

Puerto Rican debt has come under scrutiny for possible illegalities, and while the island is affected by unprecedented crisis, hedge funds continue to push for higher debt service payments. As of March 2017, the New York State Common Retirement Fund had $324 million invested in the Tilden Park Investment Fund, which went on a bond buying spree in the wake of the hurricane, with the hope of profiting off of the island’s tragedy. The state pension fund also is invested in Oaktree Capital, Centerbridge Capital, and Knighthead Capital, all of which own Puerto Rican government debt. Additionally, the Fund is invested in The Blackstone Group and TPG Capital, two large private equity managers who have aggressively pursued foreclosures on the island.

Puerto Rican debt has come under increased scrutiny for possible illegalities as hedge funds continue to push for higher debt service payments. While the Governor does not directly control the pension fund, Cuomo recently used his influence as the state’s top elected official to push the Comptroller to divest the state’s pension fund from fossil fuels. Former City Council Speaker Melissa Mark-Viverito and Cynthia Nixon released the following statement calling on the state pension fund to divest from Puerto Rican debt holders.

“While this debt should ultimately be forgiven, in the meantime we must show the people of Puerto Rico we are truly their ally, and divest New York state pension funds from any Puerto Rican debt holdings, now.  We cannot say that no state has done more for Puerto Rico than New York, if we are simultaneously supporting the same vulture funds that devastate the island. We have to put our money where our mouth is.”

The Governor has also been criticized in the past for taking money from hedge fund managers and others on Wall Street who have profited from Puerto Rico’s economic decline, yet he has continued to accept those donations.

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