MercoPress. South Atlantic News Agency
Argentina sends warning letters to banks supporting Falklands’ oil industry
As many as 15 British and US banks have received warning letters by the Argentine embassy in London about possible legal action over giving advice or even writing research reports about companies involved in the Falkland Islands' nascent oil industry, London’s Sunday Telegraph said. Read full article
Comments
Disclaimer & comment rulesBanana republic is bananas.
Apr 02nd, 2012 - 05:30 am - Link - Report abuse 0... and quite possibly acting illegally because it's not the de facto controlling entity of the region.
More pathetic attempts to bully by the disgraceful state of Argentina.
Apr 02nd, 2012 - 06:08 am - Link - Report abuse 0Argentine people reading this should be embarrassed by CFK's latest attempt at aggression.
Truly, truly shameful and quite pointless too.
That's the policy should be! Go for all british economic interests here and all around the world!
Apr 02nd, 2012 - 06:32 am - Link - Report abuse 0Ha ha. Jorge you are hillarious. Go after our assets all you wish, i could do with a good laugh. You now want to threaten the bank you use to organise your debt swap. What next, is your right hand going to accuse yohr left about being a pirate?
Apr 02nd, 2012 - 06:51 am - Link - Report abuse 0You lazy bunch couldn't even be bothered to sign the letter. A signature has certain legal connotations.
Ah ignore Jorge as ever is about as informed as a loaf of bread.
Apr 02nd, 2012 - 06:55 am - Link - Report abuse 0The UK is in the position to bring Argentina down given it owns a great deal of the world banking system.
RBS are also government owned and I'm going to hazard a guess that seizing assets of theirs will result in immediately retaliation.
Not to mention it could veto wcb loans Argentina requires and which the USA has been encouraging to do, then there is of course bring sanctions via the EU. Really the UK has a lot of options to hurt Argentina with should it not back down and stop being so aggressive.
I would wipe my arse with the letter and send it back
Apr 02nd, 2012 - 06:59 am - Link - Report abuse 0It is very difficult to trust a country which is so mercurial, changing every day”
Apr 02nd, 2012 - 07:04 am - Link - Report abuse 0Daniel Sabsay
http://www.bbc.co.uk/news/uk-17576856
As if any of those institutions gives a damn about civil action in Argentinian courts. Yet more totally pointless bluster from a desperate and friendless Argentinian government.
Apr 02nd, 2012 - 07:14 am - Link - Report abuse 0Good Morning, Good Morning, Good Morning!!!
Apr 02nd, 2012 - 07:16 am - Link - Report abuse 0How are you all my friends? did everyone have a good weekend? you did? I am happy to hear that.
As Christopher Robin said in the book “Now we are six” ..........and the look in his eye, seemed to say to the sky....... Now how to amuse them today.....”
I actually thought ( for about a second ) that after the 30 year anniversary that everything would calm down and that the Argentines would be, well, less touchy, you know?
Now I can see that I was wrong..........
I would wipe my arse with the letter and send it back
Apr 02nd, 2012 - 07:26 am - Link - Report abuse 0Watch you dont get lead poisoning
http://en.mercopress.com/2012/03/29/guess-why-argentina-restricts-book-imports-possible-lead-poisoning-from-ink
Argies claim reading gives you cancer
http://en.mercopress.com/2012/03/29/guess-why-argentina-restricts-book-imports-possible-lead-poisoning-from-inko/history/hist82article13.html
Oh the irony, Argentina threatening banks. The banks should write back, reminding KFC & Co. how much they owe, how behind they are with their repayments, and threaten to withdraw their overdraft facility :))
Apr 02nd, 2012 - 07:39 am - Link - Report abuse 0This is hilarious the CFK regime is getting even more kookier by the day, but who can blame them especially when your desperately trying to distract your population away from 30% inflation declining oil and imports and a massive spiraling budget deficit which you caused by squirreling it away on bribing the electorate and lining your fat sons and sister in laws pockets....
Apr 02nd, 2012 - 07:59 am - Link - Report abuse 04 Beef “You lazy bunch couldn't even be bothered to sign the letter. A signature has certain legal connotations. ”
Apr 02nd, 2012 - 08:58 am - Link - Report abuse 0Afraid that it doesn't chap, signing under seal is usual for government departments as the seal is normally the official and legal recognition of the incorporation of the department as a “corporation sole”. This allows for the department to act through its head, or minister, and to sign documents via its official seal. Use of a signatory would connotate signature by the minister on behalf of the ministry rather than the documents being signed by the ministry itself.
Having said that, this is only going to lead to more capital flight. Afterall, Argentina is a huge market for these guys and they could probably just set up in Montevideo like a number of other Banks (Barclays Wealth, Man Capital Group etc…) and do a similar job from there.
Well firstly the letters are not formal legal letters since they are unsigned (basically no one in argentina wants to take legal responsibility for them - I wonder why) Secoundly they are in spanish - Well english law is clear all legal documentation must be in intelligible english to be used in court or as part of the legal process. As for the banks that are based in the UK, well the argentines will find that if they do not follow up this letter with legal proceedings within a reasonable time scale, then any claim they bring - Which will have to be heard in the UK as that is the defendants local court and recongnised legal jurisdiction, then argentina must follow court process rules. If they don't start legal proceedings for say another 12 months then the claim will be thrown out of court at the first hurdle same for if the breach CPR rules, inparticuler CPR31.14 which is referecne disclosure of legal documentation that they base their claim on. Failure to comply with CPR rules is seen as an abuse of process and i have seen many cases thrown out as a result.
Apr 02nd, 2012 - 09:23 am - Link - Report abuse 0Though argentina are to be honest making themselves out to be a laughing stock, not just to the world but to the legal and banking communities too. I heard from a friend in the banking industry that as a result of these letters the banks maybe considering calling in argentine debt, not just the governments but all debts even those held by the agentine public in preperation to pull out of argentina. They may even have already moved their funds outside of argentina.
@14 If they called in all personal debt it would be hilarious, but risky. Knowing Argentinians they will just declare themselves bankrupt en massse as a part of 'the game'. Regardless, I think the banks that haven't already would be best placed in a swift move to Montevideo. I don't know why any would actually want to remain in Argentina, given the upcoming economic crisis.
Apr 02nd, 2012 - 09:28 am - Link - Report abuse 0I just wish I could fast forward a couple of years to the deafening roars of laughter when Argentina (having had to take out a loan just to pay the postage) sends out default notices for the 15 banks' unpaid fines :)
Apr 02nd, 2012 - 09:38 am - Link - Report abuse 0Let's figure this out, friends. An unsigned threatening letter, possibly forged, from an organisation that doesn't have a legal presence in the United Kingdom.
Apr 02nd, 2012 - 09:46 am - Link - Report abuse 0Threats that may have NO implications as UK companies habitually write contracts that have to be interpreted and/or actioned under English/Scottish law.
Therefore, an argie judicial system that is unlikely to have any jurisdiction. Except by breaching contract and/or international law.
But, beyond that, a signal warning to all “foreign” companies to grab their money and run! Watch the implosion of argieland from somewhere safe.
Interesting guys, lets look at exactly what they can do. The only thing I can see is the ability to take action against those banks which have incorporated subsidiaries in Argentina (rather than branches which would be incorporated in England & Wales). So they decide to prosecute subsidiaries in Argentina (over which they legal jurisdiction). The banks themselves would obviously move out their assets as quickly as possible (to another recently incorporated subsid. in Montevideo). Or, would the banks stay and call in debt as a countermeasure? Obviously strength in action is required so all affected banks would need to do this for it to be effective. It seems to me then, that banks will just pull their cash/assets out of the system. This would lead to fall of the merval, firesale of RG bonds (?) and a liquidity issue with regards to the provision of cash to large corporats. Would the government then step in to provide liquidity? Would they be able to if this precipitated increased capital flight as there aren't that many US$s left in the central bank. Could that lead to an Argentinean credit crunch? Tea Boy, GreekYoghurt what is your take, and what would you do if you were the RBS branch in BA?
Apr 02nd, 2012 - 09:59 am - Link - Report abuse 0Speaking as a lawyer, the Argentinian courts will have jurisdiction over any operations in Argentina, whether by a locally incorporated subsidiary or the branch of a foreign corporation.
Apr 02nd, 2012 - 10:20 am - Link - Report abuse 0I have little doubt that the local courts would enforce laws created by the Kirchner government which make investing in Falklands oil operations illegal or unlawful. Equally, I have little doubt that local courts would allow enforcement of such judgments against assets in Argentina.
However, all this would be illegitimate in international law, and particularly under the bilateral investment treaty between Argentina and the UK.
This means that the Argentinians would be extremely unlikely to succeed in any attempt to enforce against assets outside Argentina - and as regards assets in the UK or the Falklands, forget it.
There would be plenty of scope for the victims of this to take argentina to ICSID arbitrations under the bilateral investment treaty, but Argentina has a bad record of simply ignoring these when they go against them - witness the current bust up with the US.
I don't know what assets Argentina has in the UK - they are not big foreign investors - but they would certainly be in the firing line.
Then there is the political angle - I would expect action from the UK and EU similar to that recently taken by the US against Argentinian exports.
the lawyers will be laughing all the why to the bank with this job creation scheme
Apr 02nd, 2012 - 10:35 am - Link - Report abuse 0Judging from Chavez' recent rant about nationalising any company that he felt like, and sending in the army to overthrow police forces he didn't like, there seems to be a trend in this area towards nationalisation. There is always some underlying strategy, based around getting their hands on sources of foreign currency.
Apr 02nd, 2012 - 10:38 am - Link - Report abuse 0KFC is desperate for dollars and to control of source of money. She's probably wanting to reduce the number of banks at some point into a few state owned banks, and asset grabbing of 'naughty' foreign banks is one way of achieving this.
As a subsidiary of a UK retail bank in Argentina I'd be looking at which area I'd make most profit going forwards, clearly wanting to move my assets out to montevideo in any way possible, but with fractional reserve banking, if you actually wanted to close up, you'd have to liquidate all your assets and then pay everyone back their money. The assets could very well be held abroad, but the amount to account holders is not.
If KFC tried an asset grab, she'd get very little in the way of true assets and just a lot of disgruntled customers, and the banks left holding all the assets in montevideo. Then what? They sue the banks after having performed an aggressive nationalisation in the US/UK courts?
I'm guessing the banks will take a long term view and be seen to distance themselves from the falklands entities for the short term. But nothing will change.
#21 Chavez was talking about reducing the brutality and corruption of the semi-privatised police (do you think Britain is a dangerously Marxist state for not having privatised ours) and getting them to do something about the very crimerate people like you always use agaist him.
Apr 02nd, 2012 - 01:37 pm - Link - Report abuse 0Go go ma'am, keep fighting the banks, the British people hate them as much as you, ti amo mi reina, besos
@22 No he wasn't. He was accusing the Police of going up against him and supporting his rivals. He then said he'd send in the army if they went against him in any ways.
Apr 02nd, 2012 - 01:46 pm - Link - Report abuse 0Not sure which part you were listening to, but I didn't hear it.
Well IF the police gang up with the undemocratic, coup-prone opposition, the something SHOULD be done, no? Tbh I didn't hear the whole speech, I just think its funny that after years of using Venezuela's law and order problems to attack Chavez, people like you now attack him for doing something about it
Apr 02nd, 2012 - 04:11 pm - Link - Report abuse 0@3 JORGE1982
Apr 02nd, 2012 - 04:20 pm - Link - Report abuse 0- but you already did that in 2001 when Argentina defaulted on it's debts.
@ Shouldn't worry about Chavez. Dementia. He'll be dead soon!
Apr 02nd, 2012 - 04:57 pm - Link - Report abuse 0Let the game begin.
Apr 02nd, 2012 - 05:04 pm - Link - Report abuse 0I wonder how many of this banks have money with the IMF, and what if any amount of money they risk to loose with the new rules. We'll have to wait and see.
The only people that will lose, is the argentine people,
Apr 02nd, 2012 - 05:26 pm - Link - Report abuse 0ooopps sorry
didn’t you lot know, that your honest and dedicated and caring leader, has HER money the Swiss banks. lol.
All this waffle from a country who's leader freely admits that Argentina couldn't even sell a single lemon to the USA because of financial penalties it has to pay.
Apr 03rd, 2012 - 06:53 pm - Link - Report abuse 0I can't wait to hear more from the Tin Man. Ha LOL.
Even sell a single lemon to the USA
Apr 03rd, 2012 - 07:59 pm - Link - Report abuse 0I bet that leaves a [ bitter] taste in her mouth .lol.
.
Please join -
Apr 04th, 2012 - 03:16 pm - Link - Report abuse 0Keep the Falklands British -
https://www.facebook.com/pages/Keep-the-Falklands-British/123151384435619?sk=wall&filter=1
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