RE:Waiting on newsThanks Ripbuzzsaw. The reason I emphasized the Federalization thing is because a couple of folks in the hearings said they were against federalization. I was concerned but also confused because I didn’t know what “federaization” EXACTLY meant. So what were they saying no to?!!
In contracts or legislation you always need to be wary of for example federalization or Federalization where the latter is a defined term. There is NO dictionary definition of “federalization” that would apply to the US government and PREPA, LOL! So when some one says they are against federalization, they are saying they are against something that isn’t even defined!
You have to think about federalization as a scale. On this scale you have at one end a PREPA that looks like this: US GOVERNMENT owns PREPA. All decisions come out of DC. The board, the CEO and senior people are white males with no connections to Puerto Rico. Ok alright the board can have a couple of Puerto Rican’s on it but we know DC has all the power for decision making. Puerto Rican’s hate PREPA and feel the US is treating them like a colony.
The other end of the scale has the US government handing over $10B or more and getting the Governor to promise to do better next time, here are some suggestions and go to it! Neither ends of the spectrum will happen!!!
This meeting was not about federalization one Congressman actually said this. it was about finding out more about the problem, recommendations and opinions from the panel, and not to come up with a detailed solution. If anyone said yes to federalization you could have spent the rest of the meeting trying to explain what he meant and what it should mean, LOL!!! Federalization for all I know MAY not even be a word that appears in the legislation. And it doesn’t need to either.
The legislation needs to spell out a formula where the management of PREPA and oversight is fully satisfactory to the side that’s going to give (er, invest) BILLIONS OF USD and is determined it is not squandered away due to incompetence, corruption, influence and fraud. Sound reasonable, the US taxpayers will demand nothing less. But the $9B in deep doo doo, currently no Board PREPA must also have the SUPPORT of the Puerto Rican people. They need Puerto Rican’s to buy into the new PREPA as much as possible, so PR will of course be included in the most senior management levels and also have decision making roles.
All I know is that Jeff was extremely pleased with how the testimony went and if you don’t believe me you can ask him yourself. Sounds like they are making a lot of progress with Real Block and also working on the real estate, too. There’s a BIG disconnect between the share price and Jeff’s opinion of where this co, is going!