Bernie Sanders called on the Federal Reserve today use its authority restructure Puerto Rico's debt.

Sanders said the US agency could invoke the 'unusual and exigent' circumstances clause of the Federal Reserve Act to loan money to the struggling U.S. territory that owes $70 billion.

'If the Federal Reserve could bailout Wall Street, it can help the three and a half million American citizens in Puerto Rico,' Sanders said.

The U.S. senator proposed the plan at town hall meeting this morning, the first of several campaign stops he's making in San Juan today, and promoted a new referendum to determine the territory's future.

He did not, however, address the Zika virus that is plaguing the island and no attendees of his mid-morning town hall brought it up.

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Bernie Sanders called on the Federal Reserve today use its authority restructure Puerto Rico's debt

Sanders compared the plight of Puerto Rico's 3.5 million residents to bailouts that Wall Street banks got

Sanders blasted 'vulture capitalists' on Wall Street and claimed their 'greed,' 'reckless' and 'illegal behavior has caused enormous problems' for Americans on the mainland in in Puerto Rico.

'These Wall Street banks have profited off the people suffering on this island,' Sanders declared.

He told a crowd of 298 supporters at his morning event, 'People in Puerto Rico should not be forced to suffer even more so that a handful of wealthy investors who have done so much bad in this this world can make even more money.'

Sanders forcefully called on the Fed 'to use its emergency authority' to approve a debt restructuring plan for the island commonwealth.

The institution has the authority in unusual and exigent circumstances to lend money to individuals, partnerships and corporations outside the banking system that are unable to secure adequate credit accommodations from other banking institutions, he stated.

An independent audit of Puerto Rico's finances is also necessary, the Democratic presidential candidate said.

And if it is determined that any of Puerto Rico's 'debt was incurred in violation of its constitution, it must be immediately set aside,' he asserted.

'I believe Congress should act immediately to give Puerto Rico the same authority granted to every municipality in this country to restructure its debt under the supervision of a bankruptcy court,' he told a cheering audience.

Taking aim at the competing political party, Sanders added, 'Unfortunately the Republicans in Congress continue to oppose this.

'The people of Puerto Rico cannot wait any longer. It is time for the Federal Reserve to act.'

Sanders lambasted the Republican plan to help the territory that is currently making its way through Congress.

They plan to to create an 'un-elected oversight board that would be given the power to slash pensions, cut education and healthcare, increase taxes on working families is not the answer,' Sanders said.

'In fact this would be not only be a major anti-democratic effort...it would move this island exactly in the wrong direction and it must be rejected.'

Sanders struck a defiant tone throughout the event toward the United States' treatment of the territory, which came under its control in 1898 as part of the treaty that ended the Spanish-American War.

'It is unacceptable,' he said, 'for the United States to treat Puerto Rico like a colony.'

The senator waded into a longstanding debate in Puerto Rico about its status and said, 'In my view the people of Puerto Rico must be empowered to determine its own destiny.'

Sanders struck a defiant tone throughout the event to the United States' treatment of the territory, which came under its control as part of the treaty that ended the Spanish-American War in 1898

He admitted that he is 'not a great expert' on the history and politics of the Caribbean island and that there is a difference of opinion on its future.

On that note, Sanders promised that in during his first year in office he would do everything in his power to bring about a referendum that would give Puerto Ricans three options: become a state, become an independent nation or reform the existing commonwealth relationship.'

'That is a decision that must be made by the people of Puerto Rico,' he said.

In 2012 a majority of the territory's residents voted in favor of changing the island's status.

A second question on the referendum asked about statehood. It was the preferred options of the majority of Puerto Ricans who answered it. But nearly half a million did not, leading to a stalemate.

Congress and the White House could act to make Puerto Rico a state but so far have opted not to do so given the conflicting positions of Puerto Ricans.

Laws governing its relationship with the United States strictly prohibit a bailout. Congress is working on legislation that would allow it to restructure its finances without putting taxpayers across America on the hook.

Sanders also joined Puerto Ricans in calling for the release of Oscar López Rivera, an island native who was arrested 35 years ago this month and convicted of seditious conspiracy for participating in a 1970s movement to turn his home a communist state.

At the San Juan town hall Sanders, an avowed democratic socialist, said President Barack Obama should pardon López Rivera during his final year in office.

He also threw his support behind marijuana legalization after a questioner asked him in Spanish for his stance.

'Si,' said Sanders, who had earlier apologized for his poor pronunciation of the island's second official language. 'See my Spanish is good enough to know that word.'

Puerto Rico votes on June 5 and has 60 pledged delegates in the Democratic race.



