Person of the Year – Judge Laura Taylor Swain
Her decisions will eventually determine, in large part, what Puerto Rico looks like over the next 20 years—and generations to come
Editor’s note: This report was first published on Dec. 16, 2021, issue of Caribbean Business.
Subscribe here to read about the most important developments of the week.
By Philipe Schoene Roura and José Alvarado Vega
U.S. District Court Judge Laura Taylor Swain is the Caribbean Business Person of the Year because her decisions will eventually determine, in large part, what Puerto Rico looks like over the next 20 years—and generations to come. Her cerebral cortex is occupied by vast creditor kingdoms competing for lost treasures in debt restructuring deals struck between bondholders and the island’s government under Title III of the Puerto Rico Oversight, Management and Economic Stability Act (Promesa).
In her court, she handles the White Walkers from legal firms and advisers representing various creditor constituencies vying for their share of a towering $73 billion debt load and some $55 billion in unfunded pension liabilities, in what is now the largest muni-market bankruptcy in the history of the United States.
To be certain, there is a hyper mitosis of interests—the value on the dollar of bondholder credits, pensioners clinging desperately to livelihoods lost, a Financial Oversight and Management Board (FOMB) forging a plan of adjustment (POA)—in dozens and dozens of adversary proceedings and avoidance actions that will have an enormous impact on the lives of those embroiled in the Promesa games.
Judge Swain has made defining decisions since taking the bully pulpit in 2017. Among the cases she heard, few of her decisions will be as transcendent as her certification of the POA submitted by the OBoard in November. At the time, the deal was teetering precariously on the brink of oblivion as the fiscal panel and the Legislative Assembly were at loggerheads over board-proposed pension cuts even though an initial agreement had called for increasing the proposed 8.5 percent pension cut threshold from $1,200 a month to $1,500, exempting more than 80 percent of pensioners from the cuts.
Lawmakers grandstanded—playing to populist interests in opposing cuts to pensions and other government expenditures—despite knowing deep down inside that they would eventually cave to the austerity mantra being driven by Promesa’s viceroys.
“I will be frank with you, my patience is wearing thin. I am not convinced that further delays are in the interests of Puerto Rico,” said Judge Swain, hinting at the possibility of lifting the stay on litigation afforded by the federal law. That scenario sent chills through the representatives on Capitol Hill who invested considerable political capital in passing Promesa, which has allowed lawyers to rack up more than $1 billion in legal fees to date. Throttling the stay would have signified that expensive negotiations were all for nought.

Related Posts
Latest News
-
Being Vigilant of the 7 Benchmarks to end 2022
We are just about to end the fourth quarter of...
- Posted November 22, 2022
-
Inflation Heading Down, What Happens Now?
The Four Benchmarks to review that confirm inflation may be...
- Posted November 14, 2022
-
The Six Factors to Expect during the end of 4Q22
We are deep within the fourth quarter we thought it...
- Posted November 10, 2022
-
Puerto Rico Banks Deliver strong earnings, beating most banks
Puerto Rico Banks Transformed their operational model The Puerto Rico...
- Posted November 9, 2022
-
US Congress Discrimination affecting the Puerto Rico’s Healthcare Ecosystem
The market dynamics that changed the Healthcare Ecosystem as we...
- Posted November 8, 2022
-
MCS contributes over $5 million to support member healthcare
The insurer distributed the amount among 409 community pharmacies in...
- Posted November 7, 2022
-
Droguería Betances Launches 60th Anniversary Ad Campaign
Droguería Betances has launched a new advertising campaign, “60 Reasons...
- Posted October 31, 2022
-
Puerto Rico Food Industry Helps Communities in Aftermath of Hurricane Fiona
Over three-quarters of a million dollars in aid to...
- October 24, 2022
-
Medplus Solutions celebrates 10 years Saving Lives
Innovation and continuous growth Expansion of specialized and more...
- May 18, 2022
-
Amazon Web Services Expands Operations in Puerto Rico
Local Office Will Offer Services to other Caribbean Islands...
- April 22, 2022
-
García Padilla: Rubio Is No Friend of Puerto Rico
Governor Says Rubio's Remarks Confirm he Works for 'Vultures'
- February 26, 2016
- 15
You must be logged in to post a comment Login