Argentina Revokes Bank Of New York's Authorization

[GS_Dirtboy]

Argentina strips Bank of New York's authorization to operate in Argentina. Congress meets today to discuss replacing Bank of New York Mellon with Banco Nacion as the intermediary in foreign law bond transactions.

http://uk.reuters.com/article/2014/08/26/uk-argentina-debt-idUKKBN0GQ1EW20140826

This is retaliation for BONY obeying US Court ruling to block interest payments that triggered Argentina's default. Given the propensity for the CFK government to act first and think later I wonder what ripple effect this will have through the financial system here.

Thoughts?

GS

 

[ben]

Why surely this means other US banks will be lining up to replace BoNY in this particular matter, and to do business here in general. Could it mean anything else?

 

[dennisr]

BONY Mellon is the intermediary for all of Argentina's ADRs listed on NYSE: YPF for one. Think it may cramp their style some: transfer funds. Who the hell knows? Unintended consequences again.

 

[wild_horses]

Next one is CitiBank.

 

[hannstew]

They probably did Bank of New York a favor. What US bank/ company really wants to do business in a country with such corruption, devaluation and instability anyway?

 

[wild_horses]

They probably did Bank of New York a favor. What US bank/ company really wants to do business in a country with such corruption, devaluation and instability anyway?

Woow, paco for breakfast is bad. Try tea or juice.

 

[dennisr]

They probably did Bank of New York a favor. What US bank/ company really wants to do business in a country with such corruption, devaluation and instability anyway?

There is a lot of truth in what you are saying. Had an ADR (AAUK) Anglo Mining based in South Africa. Woke up one day and it was delisted on the NYSE. Bank of New York said there was too much government hassle to maintain and they delisted it. No prior notification. Was quite surprised it could be delisted so easily. No SEC filing required until after the fact. YPF would be up the creek for sure if it got delisted.

 

[sleslie23]

Woow, paco for breakfast is bad. Try tea or juice.

Speak for yourself.

 

[PhilipDT]

x

Thoughts?

GS

This was as well thought out as every other move in this fiasco.

 

[syngirl]

Yeah CitiBank has already expressed concern that they will have their license revoked -- god I hope not, they are the most professional of the banks here