For Immediate Release
Supreme Court Refuses Argentina Hedge Fund Debt Case
Lower Court Ruling Stands and Validates Hedge Fund Predatory Behavior
WASHINGTON - The US Supreme Court denied hearing Argentina's appeal today and a lower court ruling stands that validates predatory behavior targeted towards countries in financial distress. The high court also denied a related appeal on behalf of the more than 92% of bond holders who had accepted Argentina's restructuring deal after the default.
Eric LeCompte, Executive Director of the religious anti-poverty organization Jubilee USA, releases the following statement:
"I am blown away by the decision. For heavily indebted countries trying to support extremely poor people, this is a devastating blow. These hedge funds are equipped with an instrument that forces struggling economies into submission.
"For 15 years, Republicans and Democrats have agreed that the world's poorest countries need to have their debt burdens reduced. Today, that bipartisan policy is threatened by the court's decision.
"The religious community is saddened that these extreme actors will now broaden their efforts to collect assets that belong to the poor.
"One loser today is New York State. Given today's ruling, countries wishing to borrow money are going to find other places to sign their contracts. That's why legitimate Wall Street investors have joined the IMF, World Bank, United Nations and the United States Government in opposing this behavior.
"Given the ruling, we need to see what legislative remedies we can implement to stop these hedge funds."
Read a history and timeline of the case.
Read Jubilee's USA's filing urging the Supreme Court to take case.
FRIENDS: Now More Than Ever
Independent journalism has become the last firewall against government and corporate lies. Yet, with frightening regularity, independent media sources are losing funding, closing down or being blacked out by Google and Facebook. Never before has independent media been more endangered. If you believe in Common Dreams, if you believe in people-powered independent media, please support us now and help us fight—with truths—against the lies that would smother our democracy. Please help keep Common Dreams alive and growing. Thank you. -- Craig Brown, Co-founder