One fact is abundantly clear: Puerto Rico's governor, Alejandro Padilla, is not about to win any popularity contests. Currently, 104,000 Puerto Ricans have signed a petition to President Obama calling for his resignation.
The Puerto Rico Electric Power Authority (PREPA), Puerto Rico's beleaguered public utility, has gotten a short reprieve from its creditors. But will it actually help bondholders and average investors?
That is the big question.
UBS Financial may not be the only investment firm alleged to have cost its investors millions of dollars in the meltdown of the Puerto Rican bond market, but it's definitely the biggest. It should come as no surprise; in addition to a past record of questionable and even criminal activities, UBS is getting plenty of bad reviews from highly dissatisfied customers – even those who didn't lose their life savings.
In mid-2014, laboring under a public debt that exceeds its gross domestic product (GDP), Puerto Rico attempted to enact special legislation that would allow its public sector corporations to seek bankruptcy protection and give them an opportunity to restructure those debts. Many of its large creditors were not happy. Three major investment firms sued in federal court to have the law overturned.
The plaintiffs in the case needn't have worried – too much.
For those unfamiliar with the federal bankruptcy code, Chapter 9 is the section applying to municipal governments (such as townships, cities and counties) and public entities under the control or supervision of a local government body. Those entities include school districts and publicly-owned, non-profit utilities.
It's been awhile since the news began breaking about the latest debacle with UBS and its sale of closed-end Puerto Rico funds. For those who aren't familiar with the story, here's the short version.
Trouble in Paradise
According to Section 801 of the Food and Drug Administration Amendments Act (better known as “FDAAA 801”), clinical trials on new medications and medical devices must be reported to the federal registry at ClinicalTrials.gov within twelve months of completion, or face “civil monetary penalties and, for federally funded studies, the withholding of grant funds”. Those “monetary penalties,” assessed thirty days after the sponsor of the study in question receives notification, are $10,000 a day until compliance.
FDA Warns Testosterone Not Approved for Low Testosterone Due to Aging and May Cause Heart Attack and Stroke; Requires Label Change
The U.S. Food and Drug Administration (FDA) issued a Safety Announcement on March 3 warning the public that testosterone products are not approved for use in treating low testosterone as a result of aging.
When an industry is well into its ninth decade of existence and has become an integral part of the economy, you would think that new technologies and more enlightened rules and regulations would have greatly increased job safety. You would be wrong.
Pharmaceutical giant Johnson & Johnson was ordered to pay $2.5 million for damages resulting from its antipsychotic drug Risperdal. The case regarded the drug company’s failure to warn the parents of an autistic child of the risks associated with the drug.
It’s a regrettably common thing to see, driving down the road; a teenager on their cell phone oblivious to the drivers and traffic around them. It’s a growing problem and one that could be fixed by device manufacturers.
Levin Papantonio is rolling out a new online newsletter to keep the public informed of breaking news related to health and safety concerns, such as major recalls, alerts, safety issues, and proposed legislation impacting consumer rights.
The Safety Alert Newsletter will be emailed every two to three weeks and will provide specific information regarding current safety issues involving a broad array of products, prescription medication, and services that have been found to pose a danger to the public.
Charles B. Johnson built the publicly traded mutual fund business Franklin Resources into a holding company with a $34 billion market value. He has also pledged $250 million to his alma mater Yale. He may also have defrauded the heir of one of the earliest investors in Franklin Resources out of $150 million.
FINRA fined Fidelity Investments $350,000 for allegedly overcharging 20,000 clients a total of $2.4 million. In FINRA's letter of settlement, it said that Fidelity had charged for transactions in fee-based accounts from January 2006 to September 2013.