President Cristina Kirchners cabinet chief, Jorge Capitanich, told press in Buenos Aires, If theres a judge whos an agent of these speculative funds, if the mediator is their agent, what is this justice youre talking about? Theres a responsibility of the state here, of the United States, to create the conditions for the unconditional respect of other countries sovereignty. The so-called holdout creditors are hedge funds NML Capital and Aurelius Capital Management. NML Capital is a subsidiary of Elliot Management run by billionaire Paul Singer, who has a history of vulture fund activity. Aurelius was founded by Mark Brodsky, who previously worked for Elliot Management. The two hedge funds began buying Argentine debt in 2001, the year the nation was previously declared in default. Economist Dean Baker, co-director of the Center for Economic and Policy Research (CEPR), writes that NML and Aurelius paid a small fraction of [the debts] face value. Their intention was to use their political connections to get a favorable ruling from the courts, with the hope of being able to extract something close to the face value of the defaulted bonds from Argentinas government. This is exactly what vulture funds do.
Posted on: Fri, 01 Aug 2014 01:14:43 +0000
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