Kochs’ Latino Front Group Defends Koch/Hedge Fund Interests In Puerto Rico

January 7, 2016

This week, the Kochs’ Latino front group, the LIBRE Initiative, became the latest Koch affiliate to step up and defend the Koch network’s interest in blocking fair access to Chapter 9 bankruptcy protections for Puerto Rico. 

In a statement, Daniel Garza, the head of the Kochs’ Latino front group, toed the Koch line on Puerto Rico


Puerto Rico’s financial crisis is largely due to a combination of cronyism, reckless government spending, and harmful federal policies. Any quick fix, including federal bailouts, will not solve the underlying problem. It needs to be addressed at the root, starting with the Puerto Rican government making tough choices – even at the risk of political repercussions.

Various options have been set forth to address the crisis, and Congress must consider this question carefully – including moral hazard and the precedent that may be set. The U.S. territory can rise above its financial crisis, but it will come through careful consideration, tough economic choices, and a willingness to work with the federal government to address its economic challenges.

Last month, the NY Times reported on the billion dollar hedge fund and Koch led lobbying campaign to prevent Puerto Rico from receiving fair access to Chapter 9 bankruptcy, which wouldn’t cost taxpayers anything. For months, the Kochs have been using several organizations, including Main Street Bondholders, a so called “concerned retirees” front group to get congressional Republicans to block the passage of legislation in the best interest of the American citizens in Puerto Rico.

Why are the Kochs sounding the alarm bells across their massive political network to lobby against fair treatment for Puerto Rico? If Puerto Rico is allowed fair access to bankruptcy protections, Koch allies stand to lose a lot of money. So they’re spending a lot of money to make sure that doesn’t happen. It’s classic Charles and David Koch: prioritizing their selfish agenda above all else, no matter the cost it inflicts on others. Read more in Bridge Project’s recent report, The Kochs’ Wealth Versus The Commonwealth Of Puerto Rico. 

Paid for by American Bridge 21st Century Foundation