A New York bill that would restrict the ability of investors to purchase certain claims involving debt issued or guaranteed by foreign governments for the purpose of filing lawsuits was passed by the state Senate and sent to the Assembly on Tuesday (June 2).
The bill, which is called the Champerty Fix Act by its supporters, has until the end of this week to be advanced by lawmakers, Reuters reported Wednesday (June 3).
Because New York law governs over 50% of sovereign bonds around the world, the bill could affect hundreds of billions of dollars in sovereign debt, according to the report.
Supporters of the bill include debt-relief advocates who argue that it would deter predatory investor lawsuits. They say that when investors buy distressed-country debt at steep discounts so they can sue for full repayment, they drain money from countries that are already in crisis, per the report.
Opponents of the bill include financial industry groups that say it would threaten New York’s status as a financial center, the report said.
The sponsor of the Assembly bill, Jessica Gonzalez-Rojas, said in the report that Assembly leaders have not committed to move the bill along.
Advertisement: Scroll to Continue
“We haven’t gotten express commitments, but we have been having really positive conversations, and we have a lot of support amongst members of the assembly, so we’re really pushing to get it over the finish line,” Gonzalez-Rojas said.
A similar bill died in the Assembly last year after being passed by the Senate, per the report.
The MFA, a trade association for the global alternative asset management industry, said in a May 29 press release that it and six other financial services trade associations said in a joint letter that they oppose the bill because it would increase the cost of capital for sovereign borrowers, incentivize sovereign borrowers to force litigation where the champerty defense could be raised, and drive sovereign debt issuances and related activity to jurisdictions that compete with New York as global financial and legal centers.
“The coalition also warned that the bill could create broader unintended consequences for New York’s economy by discouraging financial market activity and reducing the state’s competitiveness,” MFA said in the release.
New York Assembly Considers Vote on Sovereign Debt Lawsuit Restrictions | PYMNTS.com Top World News Today.
Hence then, the article about new york assembly considers vote on sovereign debt lawsuit restrictions pymnts com was published today ( ) and is available on TOP world News today ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( New York Assembly Considers Vote on Sovereign Debt Lawsuit Restrictions .. PYMNTS.com )
Also on site :
- BURNHAM PARK CAPITAL MARKETS LAUNCHES AS CHICAGO'S NEWEST INVESTMENT BANK, WILL CONSOLIDATE FIVE SPECIALIZED FIRMS TO CREATE A FULL SERVICE PLATFORM
- Is Hungary about to give Ukraine the EU green light?
- Gunfire erupts in Mogadishu before protests against Somali president’s rule