SCOTUS Ruling Could Spell Big Trouble For U.S.

SCOTUS Ruling Could Spell Big Trouble For U.S. – http://huff.to/1kYNEPy

Creditors should be aware of sovereign immunity, it’s part of what they signed up to face.  And if they took their chances with Argentina…

The reason the USSC didn’t take it is probably because of an important distinction- a bank that US courts do have jurisdiction over can’t act in violation of US law- sovereign immunity isn’t transferable.

On the other issue, ordering what institutions in Belgium may do, it’s clearly in excess of jurisdiction as there isn’t even “in rem” jurisdiction and there is probably an international tribunal with jurisdiction to shut that down.

It may be time for a treaty on the issue.

Of course Argentina may honor bonds brought to their doorstep for interest etc.  Sovereign immunity doesn’t let them do whatever they want in New York but at home, their house, their rules.

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