BNY Mellon loses Argentina privileges


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.

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Comments (2)
  • alpine
    , contributor
    Comments (2081) | Send Message
     
    It seems a "curse" every way you look at it, as the North Americans and the South Americans should be huddling together, with the Asian "onslaught", but it seems the likes of Paul Singer "feel, in their best judgement" that American "exeptionalism" should continue as before, i.e. take no prisoners.

     

    Meantime, along with BNY, there are going to be millions of Argentinians who will pay an expensive price, again, at a time when the North and the South Americans should be huddling together.

     

    Argentina, you are rapidly falling into China's laps (it seems it has many laps), whether you like it or not.
    26 Aug 2014, 01:34 PM Reply Like
  • Peter Osborne
    , contributor
    Comments (19) | Send Message
     
    In the long run, this will work to BKNY's best interests. Being on the wrong side of a court decision and from there to the wrong side of the of the SEC would be a very bad idea. BKNY should try and remove and/or divest itself of exposures to financial extortion from unstable , dictatorships of any type , and failed states.
    26 Aug 2014, 02:40 PM Reply Like
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