U.S. Says Elliott's Argentina Subpoenas Went Too Far

Dec 9 2013 | 11:01am ET

The U.S. government is no longer backing Argentina's bid to avoid paying its hedge-fund creditors—but that doesn't mean it supports making things easy for them.

U.S. Solicitor General Donald Verrilli has asked the Supreme Court to consider whether the lower courts erred in issuing and upholding a broad subpoena seeking information about Argentina's assets abroad. Verrilli said that the Obama administration's position in that they had "erroneously permitted blanket discovery into a foreign state's assets located outside the United States."

Earlier this year, the Obama administration declined to ask the Supreme Court to hear Argentina's appeal of rulings ordering it to pay hedge-fund holdouts from its 2001 default. The administration had previously backed Argentina's argument that, as a sovereign nation, it cannot be forced to pay the hedge funds, led by Elliott Management.

The Supreme Court in October duly rejected Argentina's bid for a hearing, although the country is thought to have a better chance at winning one next year, following the U.S. Second Circuit Court of Appeal's decision not to rehear the case.

The Second Circuit is also involved in the Obama-backed dispute, having ruled last year that Elliott could enforce subpoenas against Bank of America and Banco de la Nacion Argentina.


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.