Puerto Rico Creditors Say Big Banks Drove Island Over Debt Edge

Thirteen of the world’s largest banking institutions knowingly drove Puerto Rico billions deeper into debt when the island was already insolvent, a trust for the commonwealth’s creditors said in court papers.

The trust hit Barclays Capital Inc., Citibank NA, Goldman Sachs and other major banks with an amended complaint Thursday, amplifying claims that Puerto Rico’s unsecured creditors have been pursuing for several years over the territory’s wave of bond sales beginning in 2008. The complaint, updated with new allegations since it was initially filed in May 2019, seeks to recover about $500 million in bond underwriting fees and swap payments, ...