New York explores ‘champerty fix’ to stop hedge funds from profiting from PR’s debt crisis

U.S. Rep. Nydia Velázquez (D-N.Y.) (Wikipedia) By THE STAR STAFF The state of New York is evaluating legislation to close a legal loophole that has long enabled hedge funds to profit from financially distressed governments, including Puerto Rico’s. The bill -- sponsored by Assembly member Jessica González‑Rojas and State Senator Liz Krueger -- would restore the state’s champerty doctrine, making it illegal to purchase debt solely to sue for repayment. U.S. Rep. Nydia Velázquez (D-N.Y.)...

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