Friday, September 5, 2014

BACK TO ARGENTINA… A TIDBIT OF INFORMATION FROM AN UNUSUAL SOURCE…AND A MURKY PICTURE

This article was shared with us by Ms. A., and it concerns the developing story we’ve been watching in Argentina and the administration of President Fernandez de Kirchner.
But first, a word for the international readership about the source of this article. This comes from Mr. Lyndon LaRouche’s “LaRouchepac” organization. For those who do not know, Mr. LaRouche was often a candidate for President running as a Democrat. Some readers here are old enough to remember his occasional appearances on television outlining his program. For his views, some allege that Mr. LaRouche was targeted for prison on tax charges, which he did serve time for. What many people outside of the USA are unaware of is that Mr. LaRouche, whatever one might think of some of his ideas or political views, ran and continues to run a well-informed private intelligence network, publishing its own newsletter under the name of Executive Intelligence Review. Whatever his political views or “larger scenarios”, oftentimes there are tidbits of information that his organization somehow manages to uncover. With these caveats in mind, I share the article, for it contains a bit of information which, if true, sheds yet more light on the developing story between Argentina and the various hedge funds:
Bank of New York Kicked Out of Argentina
Did you catch it?
Here it is again:
“The government bill proposing to open a new voluntary debt swap to restructured bondholders under Argentina law, to be debated in the Senate on Aug. 27, also authorizes the Finance Ministry to “take necessary steps” to remove BoNY as the country’s trustee bank for the 2005 and 2010 debt restructuring. BoNY violated the terms of the restructuring contract, by failing to pay bondholders on the June 30 deadline, despite the fact that Argentina deposited $539 million in BoNY’s account for that purpose on June 27.
“Capitanich also pointed out that a group of hedge funds, including George Soros’s Quantum Partners and Kyle Bass’s Hayman Capital, has filed a lawsuit against BoNY in London, demanding a 226-million-euro interest payment, blocked by New York Judge Thomas Griesa last month. The New York Times reported Tuesday that the plaintiffs argue that, since the interest payment they are owed is governed by British law, Griesa has overstepped his jurisdiction in blocking their payment.”
In other words, behind the troubles, there are lawsuits from Soros et al trying to recover monies owed to them under British law, that were blocked by an American judge. And behind Argentina’s move to ban BoNy from that country is the astonishing allegation that that nation did deposit $539 million as part of the payment on debt restructuring.
That raises some thorny questions: why didn’t the bank pay it out (if in fact the Argentine government deposited those funds), and if it received those monies, where are they now?
Given the mess that seems to be increasingly in evidence, including Argentine lawsuits of a Dutch bank over its involvement in the LIBOR rigging scandal, one gets the distinct impression that something very murky is afoot and lurking behind the scenes.
This is a story that’s not going to go away quietly into the night, for one notes that Mr. Soros and Mr. Bass are not filing suits against Argentina, but rather against BoNY.
This is one to pay very close attention to folks.

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