"Whether it's this year or next year, the odds of another economic downturn are high — and growing," Warren says.Politicsread more
The agreement between the White House and congressional Democrats would raise the debt ceiling for two years and permanently end the sequester.Politicsread more
The Iranian Intelligence Ministry held a briefing on Monday where they announced the alleged spies were Iranian citizens but trained by the CIA.World Newsread more
Microsoft and OpenAI announced a new partnership to build artificial general intelligence to tackle more complex tasks than current AI.Technologyread more
Two traders say Boeing's on the path to recovery.Trading Nationread more
Documents leaked to The Washington Post revealed that Huawei secretly worked with the North Korean government on its wireless network.Technologyread more
Equifax will pay at least $575 million, and potentially as much as $700 million, to settle allegations over its massive over 2017 data breach, U.S. regulators said in a...Technologyread more
CNBC's Mike Santoli breaks down the aggressive buying of "sure things" and shunning of cyclical and policy risk.Trading Nationread more
Facebook has seen an increase in the median number of comments, likes and ads clicked by users on the service from January to July, according to Audience Insights, a Facebook...Technologyread more
For investors hoping rate cuts would push the market higher, Goldman Sachs said stocks can't really go anywhere from here.Marketsread more
Here are the biggest calls on Wall Street on MondayInvestingread more
Puerto Rico on Wednesday will face investors for the first time in a bankruptcy court, as it kicks off the biggest and most divisive debt restructuring in U.S. public finance history.
While Wednesday's hearing, in federal court in San Juan, is only the start of a process that could take months or years, it is also a culmination of more than two years of bitter debate between Puerto Rico's government, its creditors and federal lawmakers over how the island should rework its debt load of $70 billion.
The bankruptcy process will cover about half of Puerto Rico's debt, though other local public agencies are restructuring out of court, and some could enter bankruptcy later.
The bankruptcies will also address $50 billion in underfunded pension liabilities, as Puerto Rico battles a historic crisis marked by a 45 percent poverty rate and near-insolvent public health and retirement systems.
Puerto Rico, home to 3.5 million U.S. citizens, has spent the last ten years in recession with debt piling up to pay for basic services.
Earlier this month, the U.S. territory's central government entered a modified version of bankruptcy protection created under a federal rescue law known as PROMESA as a way to legally pave the way to cut its debt. The island's sales tax authority, known as COFINA, followed suit days later with its own filing under Title III of the PROMESA law, which provides for the bankruptcy mechanism. The hearing will open with a discussion on the expected timetable for a debt-cutting plan, as well as settlement talks and possible mediation, according to an agenda filed on Tuesday. That may give insight into the style and pacing of U.S. District Judge Laura Taylor Swain, the Manhattan jurist tapped by the U.S. Supreme Court to handle the cases.
The rest of the agenda, though procedural, could shed light on how aggressive Puerto Rico's creditors will be in pursuing a scorched-earth strategy to thwart debt-cutting efforts.
Motions that in many cases would be viewed as mere housekeeping — for example, Puerto Rico's request to consolidate the two bankruptcy cases, and to allow banks to continue honoring transfers and deposits — have already been met with staunch objections from creditors.
The bankruptcy promises to be lucrative for lawyers and financial advisers who represent the parties involved in the proceeding. Between the two cases, already more than 100 lawyers have requested permission to appear before Swain, court filings show.