Argentina Central Bank Funds At Federal Reserve "Embargoed"
And so it escalates: first the head of the Argentine Central Bank was demonstratively sacked by the president, and now Argentina funds held at the Federal Reserve have been "embargoed" by US District Judge Thomas Griesa. We are doing a thesaurus check to see if embargoed is a synonym for confiscated. Wily old Ben - always coming up with new and improved ways to create funding crises thousands of miles away (as long as they are not at the Marriner Eccles building). We are confused how gold has so far managed to escape the same "embargo" fate as the South American country.
Dow Jones reports:
BUENOS AIRES (Dow Jones)--U.S. District Judge Thomas Griesa has embargoed U.S. accounts held by the Argentine central bank, a central bank official said Tuesday.
The court ruling froze the central bank's accounts at the Federal Reserve, the official said.
The ruling "clearly mentioned" the decree signed in December by President Cristina Fernandez, which allowed the government to settle debts using central bank reserves, the official said. The official said he didn't know how much money was in the account, but that
the levels had been reduced to a minimum "given the risk which existed." Legal experts had said that the decree could open the way for creditors holding defaulted bonds to settle claims against Argentina by seizing the central bank's reserves.
Clerks in Judge Griesa's office weren't available for comment.