Vulture fund hysteria is reaching a fevered pitch, as the Queen’s toadies realize they are losing more leverage with each passing day.
Judge Thomas Griesa has called new hearing of lawyers for the vultures and the Argentine government for Sept. 10, by which time the bill presented to the Argentine Congress for a new debt swap to be carried out under local jurisdiction, will probably already be law. Will Griesa then declare the entire Argentine nation to be in contempt of court?
Driving the hysteria, too, is the Second Circuit Court of Appeals in New York having set an “urgent” hearing for Sept. 18, to hear the appeal by both the Argentine government and Citibank of Griesa’s ruling that has prevented payment of $539 million to restructured bondholders. Desperate Citibank, facing expulsion from Argentina for failing to follow domestic law (by which it is bound as a legally-chartered “Argentine” bank) and pay bondholders, is praying that the Appeals Court will overturn at least part of Griesa’s ruling so that it can make payments.
The vultures are unnerved by the fact that the Appeals Court, which has the power to overrule Griesa, has agreed to hear the case at all. Roy Englert, a lawyer for the Aurelius Capital Management vulture fund, reflected this in an Aug. 29 statement charging the Fernandez de Kirchner government with resorting to “trickery” in trying to “get around” the rulings by Griesa and the U.S. Supreme Court by going to the Appeals Court. He then lambasted Citibank for “getting its hands dirty” by siding with “those who ignore the law”—Argentina—in their joint appeal. He warned that should Citibank lose its licence to operate in the country, it will be its own fault, for choosing to “do business with those who don’t respect the law.”