[Marxism] NYC judge blocks transfer of Argentine funds

[Fred Fuentes]

NYC judge blocks transfer of Argentine funds
Larry Neumeister. Associated Press. October 30, 2008
http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--argentina-pension1030oct30,0,4610675.story

NEW YORK - A judge has blocked Argentina from transferring any of its
pension fund investments out of the United States until he hears next
week the complaints of bondholders who have a $553 million judgment
against the republic.

U.S. District Judge Thomas P. Griesa signed an order directing the
U.S. Marshals Service to await his instructions before serving any
legal papers that would result in the transfer of funds.

Bondholders attorney Barry R. Ostrager said Thursday that his law
firm, Simpson Thacher & Bartlett LLP, sought the freeze order after
Argentine President Cristina Fernandez announced plans on Oct. 21 to
nationalize $23 billion in private pension fund assets to protect
retirement money from the global financial crisis.

"We're fairly confident some meaningful portion of those funds would
be in the United States," he said.

Ostrager said he was optimistic that the judge will continue the
freeze order after the hearing. He said it was likely the judge would
set a schedule for both sides to submit written arguments.

Ostrager said the freeze order does not prevent financial companies
from making their usual investment decisions related to the pension
funds assets as long as they are not moved out of the United States.

In court papers dated Wednesday, Ostrager said the freeze order was
necessary because "the republic is already taking steps to cause
nominally independent private pension fund managers to repatriate FJP
(10 private pension funds) overseas investments back to Argentina,
even prior to the nationalization legislation taking effect."

He added: "There is every reason to believe that the Republic will
orchestrate its plan to nationalize the investments or private pension
funds in a manner that serves to elude and frustrate this court's
judgments."

According to the court papers, the private pension funds own about $26
million in assets.

A lawyer for Argentina, Carmine D. Boccuzzi Jr., did not immediately
return a telephone message seeking comment Thursday.

Most Argentine political parties support Fernandez's plan because
across Latin America people are questioning the benefits of a 1990s
wave of privatizations advocated by Washington, which were seen to
benefit rich people with political connections who often ended up
buying companies on the cheap.

"The financial crisis has laid bare the frailty of the private
system," Labor Minister Carlos Tomada told lawmakers Tuesday.

Argentina's Social Security administrator said Tuesday that the funds
to be nationalized total $23 billion, not $30 billion as previously
announced by the government. He explained the $7 billion discrepancy
resulted from an initial overestimation of the funds held by the
private pension funds _ their nominal value was higher than their
market value