September 11, 2014

UN Passes Resolution Potentially Ending Vulture Funds

The UN General Assembly passed a historic resolution to begin negotiations for an international bankruptcy process to end global inequality and stop predatory hedge funds. The resolution passed by a super-majority vote of 124-11 with 41 abstentions, with the U.S. voting no along with 10 other countries. The bankruptcy process could make it more difficult for hold-out investors to block countries from debt restructuring and could limit future defaults. The critical financial reforms will benefit the world's poorest people, and is truly a victory. 

However, the vote will not outlaw global predatory activity in the U.S., as the US government was one of a handful of countries who voted against the resolution while defending a market-based solution.
"The United States has led for 15 years on debt relief and has been a powerful voice against predatory behavior," said Eric LeCompte, Executive Director of the religious debt relief organization, Jubilee USA. "I along with the entire faith community is so deeply saddened that the US government voted against our debt relief efforts. Our leaders failed us today."

With continued efforts by groups like Jubilee USA, an end to predatory funds in the U.S. is hopefully not far ahead. 

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