BNY Mellon loses Argentina privileges

|By:, SA News Editor

It's Argentina's latest move against BNY Mellon (BK -0.4%) which blocked a $539M government bond payment in June under orders of a U.S. court (the court ruled Argentina first had to pay the "holdout" funds who refused bond swaps in wake of the country's 2002 default).

The bank is an intermediary between the government and its debt holders, and the Argentine congress is set to meet Wednesday to discuss passing a law replacing BNY will state-controlled Banco Nacion.

BNY Mellon is getting it from both sides - facing a lawsuit from hedge funds demanding their share of the blocked bond payment.