- js reader version
- view hidden posts
- tags and related articles
by Jennifer Tong
Monday, Oct. 07, 2013 at 4:37 PM
The U.S. Supreme Court decided not to take the landmark debt case between Argentina and bondholders led by NML Capital, a hedge fund that buys the debt of countries in financial crisis. Argentina is expected to file a second petition in the coming months that the Supreme Court will review and decide again if it will hear the case.
The U.S. Supreme Court decided not to take the landmark debt case between Argentina and bondholders led by NML Capital, a hedge fund that buys the debt of countries in financial crisis. Argentina is expected to file a second petition in the coming months that the Supreme Court will review and decide again if it will hear the case. In June, Argentina filed a writ of certiorari to the U.S. Supreme Court asking the court to overturn a ruling by the 2nd U.S. Circuit Court of Appeals made last October. The ruling ordered Argentina to pay bondholders .33 billion based on the court’s interpretation of a pari passu, or parity clause.
“The faith community is saddened by the high court's decision,” noted Eric LeCompte, Executive Director of Jubilee USA, a religious antipoverty organization. "Given the likelihood of Argentina filing again to the U.S. Supreme Court on this global poverty case, we're praying upon another review the U.S. Supreme Court will take it."
Hedge funds that seek to profit by buying up distressed debt of poor or strapped-for-cash nations at deeply discounted rates and then using legal systems to win up to a 400% profit are commonly referred to as “vulture funds.” There are several of these types of hedge funds suing Argentina after purchasing cheap Argentine debt when the nation defaulted on roughly billion in 2001. At the time, Argentina’s unemployment numbers were soaring and the nation’s financial status mirrored Greece’s current financial woes. Argentina restructured its debt at about 30 cents on the dollar. About 92 percent of bondholders took this deal. As the nation began to come out of economic decline, creditors who restructured have seen the value of their bonds increase. The holdout hedge funds who are suing Argentina have refused the deal several times and continue to sue for the full amount.
France filed an amicus brief to the U.S. Supreme Court in support of Argentina’s request. German courts sided with Argentina and rejected similar hedge fund claims to Argentine assets in Germany. The IMF weighed in on the case saying that the result would have major implications for how future sovereign debt is restructured. Additionally, the World Bank noted that vulture fund behavior threatens financial recovery in fragile economies. During the course of the case, formerly before the 2nd U.S. Circuit Court, the U.S. Government filed a friend-of-the-court brief noting a ruling against Argentina could make it much harder for countries in financial recovery or countries facing economic stresses to access credit and debt swaps.
“These hedge funds may have mountains of money, but they are morally bankrupt,” stated LeCompte.
Jubilee USA Network is an alliance of more than 75 U.S. organizations, 300 faith communities and 50 Jubilee global partners. Jubilee’s mission is to build an economy that serves, protects and promotes participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than 0 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org
Report this post as:
Change Links September 2018 posted
More Scandals Rock Southern California Nuke Plant San Onofre
Site Outage Friday
Change Links August 2018
Setback for Developer of SC Farm Land
More problems at Shutdown San Onofre Nuke
Change Links 2018 July posted
More Pix: "Families Belong Together," Pasadena
"Families Belong Together" March, Pasadena
Short Report on the Families Belong Together Protest in Los Angeles
Summer 2018 National Immigrant Solidarity Network News Alert!
Watch the Debate: Excluded Candidates for Governor of California
Change Links June 2018 posted
The Montrose Peace Vigil at 12 Years
Unity Archive Project
Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi
CA Senate Bill 1303 would require an independent coroner rather than being part of police
Three years after OC snitch scandal, no charges filed against sheriffs deputies
California police agencies violate Brown Act (open meetings)
Insane Company Wants To Send Nuke Plant Waste To New Mexico
Change Links May 2018
Worker-Owned Car Wash on Vermont Closed
GUIDE TO REBEL CITY LOS ANGELES AVAILABLE
lausd whistle blower
Help KCET and UCLA identify 60s-70s Chicano images
UCLA Luskin: Casting Youth Justice in a Different Light
Change Links April 2018
More Local News...
Antrhopocène, le grand effondrement
Creative Destruction Hack Diamonds Windows/iOS/Android - Creative Destruction Generator
The Dictatorship of Corporations
18 Lethal Consequences Of Hunting
Paraphysique de l'outplacement déontologue
Creative Destruction Hack Mod Generator
Shopping du bashing
After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again
“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen
Probabilités de fin d'humanité
Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW
Propagande de virus, virus de propagande
Steer clear of work morality!
Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates
Paraphysique de l'origami
The Shortwave Report 09/07/18 Listen Globally!
August 2018 Honduras Coup update
Du réussissement putréfié
Brett Kavanaugh Filled The 5th Circuit With Execution Judges
Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts
Paraphysique de contextualité
Crisis Regulation in Global Capitalism
Ex-voto de réification
Please Oppose Warmonger, Execution and Torture Supporting Bush Operative Brett Kavanaugh
Paraphysique d'exploitation occultation
Ryan Zinke Is Charging Taxpayers For A Trophy Hunters' Council
More Breaking News...