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“zombie myth in the pari passu saga”

June 24, 2014

A letter to Judge Griesa” by Joseph Cotterill delivered from Cleary Gottlieb, addressed to Judge Griesa (of the Southern District of New York) regarding Argentine restructured debt:

It’s something of a zombie myth in the pari passu saga.

This so-called myth is about the “Rights Upon Future Offers” and the ‘voluntariness’ of any deals with holdouts, in Argentina’s “emerging from the crisis of 2001” (see Wikipedia: “1998-2002 Argentine great depression“).

A reminder that it might be a while before we fully emerge from our banking crisis of 2008 but recovery is possible. Of course these two situations were quite different and aren’t particularly on equal footing.

Pari passu is a Latin phrase that literally means “with an equal step” or “on equal footing.”

Black’s Law Dictionary (8th ed., 2004) defines pari passu as “proportionally; at an equal pace; without preference.”

Practically, that will sometimes mean the “investors are equally mistreated”. Is that anything like what’s happened to zombie homeowners?

James Delingpole at Breitbart points to

trillions of tax dollars to bail out the zombie banks

When do we bail out the people with property involved? Decades later? Equal drippings for all… too little too late?

From → debts, economics

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