It may not seem like Argentina needs another enemy right now, but it’s gone ahead and found one. The latest to be at fault for Argentina’s refusal to pay its bills? Germany. Surprising, I know, what with the Germans’ own long history of fiscal recklessness and inability to find traction in the international debt markets. Oh yea, and the fact that Argentina was kind enough to take in all of those troublesome Teutons back in the ‘40s and ‘50s; a little gratitude maybe would be in order? But it’s true: Germany has a “hostile attitude” towards Argentina’s plan to do whatever the hell it wants while still borrowing money on its terms. Read more »
Paul Singer doesn’t want to hear the bank’s bellyaching. Neither does the U.S. Second Circuit Court of Appeals. But not wanting to go the way of BNY Mellon, Citi will try its hand once more with the not-always-sympathetic Thomas Griesa. Read more »
There’s been a major diplomatic incident in Buenos Aires: It seems the U.S. chargé d’affaires in Argentina has committed the unpardonable sin of telling the truth by saying that it might be a good idea for the country to “get out of default.”
Well, this did not sit well with Foreign Minister Hector Timerman, for, as you may have heard, the Argentine government is of the magical realist persuasion in which if you don’t pay your bills you’re not in default if you say you tried really hard to pay them, like by putting the onus on the Bank of New York Mellon and then firing them and throwing them out of the country, regardless of what all the ratings agencies and ISDA and everyone else says. To say otherwise would be an impermissible intrusion into the internal affairs of a sovereign country, unlike, say, suggesting that a president make a troublesome judge disappear. Read more »
Whatever else you may say of him—and Argentina has said a lot: for instance, that he’s incompetent and hopelessly biased against it—you must admire Daniel Pollack’s persistence. Ever since being handed the thankless and hopeless job of trying to sort out in a few weeks what 13 years of litigation just made worse, the court-appointed mediator has suffered the slings and arrows, listened to what one imagines are endlessly repetitive speeches by Argentine politicians and issued many press releases pretending that there is the remotest chance of a settlement. And, God bless him, even after Argentina basically said it wasn’t interested in negotiating anymore, he’s still at.
Would he go so far as to describe his fellow hedge fund manager’s business tactics as hostage situation-esque? Yes, yes he would. Read more »
Just kidding: There was nothing lucrative at all about the Argentine market for BNY, only trouble. But Cristina Kircher & co. have been kind enough to deal with that problem for their estranged trustee bank. Read more »