NY bill would block debtor nations from US capital markets

The European debt crisis is “Greece” to the wheels of new state legislation that would protect US capital. The NY Post reports that a group of bondholders burned when Argentina defaulted on more than $81 billion in 2001 is pushing Albany to vote on a bill that would make it difficult for debtor nations to access New York’s markets
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The so-called “Sovereign Debt Bank Bill,” introduced by several Democratic assemblymen, would bar sovereign nations that default on one debt issuance from paying interest on others.

During its debt crisis, Argentina allegedly moved money to offshore accounts to avoid paying earlier creditors while paying interest to more recent bond buyers.
The bill is backed by the American Task Force Argentina, which represents “holdout” bondholders, including hedge-fund giant Elliott Associates, which refused to participate in a 2005 debt restructuring with Argentina and instead pursued remedies through the courts. Banks that underwrite sovereign debt offerings, including Barclays Capital, want to stop the bill, a bill advocate said….

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http://www.nypost.com/p/news/business/ny_bill_would_block_debtor_nations_6ABV8jPsc5Xdgw6Bez1VbM