A Hedge Fund, A Country, And A Big Sailboat

During the last week of 2001, the administration of Argentina defaulted on the larger part of the public debt, US$132 billion, a seventh of all the money borrowed by the Third World. “The country would not pay what it was owed. Lenders blinked. Victory seemed near. But a group of hedge funds had a different plan. They took the entire country to court.”

Greg Palast reported that “Paul Singer, known as The Vulture, won a $4.65 billion payment from Argentina — nearly one hundred times his “investment” of $50 million in old Argentina bonds. It was, in finance speak, the most successful “vulture attack” ever.”

Planet Money | 11th March 2016

Illustration by Ted Rall