New York has the power!
#NoMoreGames in New York
New York is the financial capital of the world and home to over 4 million immigrants. It is also the state with the 8th highest Latino population, with over 3.9 million Latinos. The state can and must intervene to curtail vulture funds’ predatory practices.
Almost half of the sovereign debt contracts are governed by New York law, meaning New York State has the power to not only change the rules by which these hedge funds play but change the sovereign debt market for the better.
Our campaign is focused on holding hedge funds accountable through New York law by proposing a two-tiered legislative policy that could limit the ability of hedge funds to co-opt debt restructuring processes and push austerity measures that have been detrimental in places like Puerto Rico, Ecuador, the Republic of Congo, and Argentina.
Our legislative package includes:
1.) Model Law S5542 / A2102:
Vulture funds buy up large chunks of debt at steep discounts from countries in financial trouble. They are able to make huge profits by refusing to renegotiate the debt down to a reasonable amount and pushing austerity measures to secure payment. This law would create a way for countries to negotiate down their debt without being blocked by a predatory minority of debt-holders.
2.) Amending Champerty S5623 / A5290:
The Champerty Doctrine prohibits the purchase of securities or other financial instruments for the sole purpose of litigation. We seek to strengthen this provision and eliminate the safe harbor for transactions over $500,000 to prevent vulture funds from profiteering from countries’ debt at the expense of people.