If the House legislation on Puerto Rico is defeated, and the bailout and super Chapter 9 Bankruptcy wins instead, Obama Administration cronies that support the latter will benefit greatly. They stand to make more than $100 million if the bankruptcy and bailout plan for Puerto Rico is put in place.
MillCo Advisors, headed up by former U.S. Treasury official Jim Millstein, could see $52.4 million in revenue from consulting work related to the Puerto Rico bailout, the New York Post is reporting, as well as, “Puerto Rico also has contracts with Manhattan law firms Cleary Gottlieb and Proskauer Rose that max out at $37 million and $6.6 million, respectively, according to government records and contracts reviewed by The Post.”
The Commonwealth of Puerto Rico hired SKDKnickerbocker, an influential Manhattan communications and public relations firm, for a $3.4 million public relations and marketing contract that includes a $500,000 advertising budget. Former Obama administration Communication Director Anita Dunn, who still regularly visits the White House, and was hired by Puerto Rico’s Governor Padilla as a bankruptcy advisor, also works for SKDKnickerbocker.
“The fact that the Puerto Rican debt crisis resulted from years of over-spending, political cronyism and outright corruption goes a long way to explain why Puerto Rico’s political leaders have poured many millions of dollars into a small group of politically connected legal, lobbying and consulting firms,” the New York Post quoted from Ken Boehm, chairman of the National Legal and Policy Center, a Virginia watchdog.