09 February 2012

Jersey to ban vulture frunds from its courts... we hope

I have written about vulture funds at length before, using a lot of intemperate language in the process.From now on they will be called Vermin Funds

To recap, Vulture funds buy up distressed debt owed by developing countries for a greatly reduced price, often because it is seen as high risk due to war or natural disasters. Once the country in question stabilises, payment can be sought wherever state-backed entities are registered. This sounds reasonable but it the Vermin Funds, not only press for the full debt (even if purchased at a small fraction of price) they also seek massive interest payments as well. A debt purchased for a few million dollars can reap rewards in the tens and somethings hundreds of millions, invariably to the great detriment to many of the world's poorest people.

Personally I consider the people who deal in such misery to be among the lowest of the low.

In the last days of Gordon Brown's government a private member's bill forbidding Vermin Funds from pursuing claims in British courts was passed (despite an attempt by the vile scumbag and bastard Christopher Chope,  the shit stain who represents Christchurch for the tories, to derail the bill). To their credit the bill was ratified fully the following year by the current government. However laws affecting the UK do not cover the Crown Dependencies (Isle of Man and Chanel Islands) so Vermin Funds were still able to pursue claims thrugh their courts.

A few days ago the Guardian reported that Jersey has proposed introducing legislation designed to stop Vermin Funds from pursuing their disgusting claims through their courts.

ALast year a Guardian/Newsnight investigation revealed that one Vermin Fund, New York-based FG Hemisphere, was using Jersey to pursue the Democratic Republic of Congo for a payment of up to $100m (£63m). FG Hemisphere had bought the original debt for less than $3m.

The decision to propose a new law was taken following a public consultation on the subject, which closed in December 2011. The chief minister of Jersey, Senator Ian Gorst, has said of the proposed new bill: "By bringing forward a law to discourage so-called vulture funds from using our courts, Jersey will be sending a clear and positive message that ours is a well-regulated, co-operative and transparent jurisdiction."

This is good news, I hope that the legislation is strong and sweeps the scum away from all of the British Isles and its crown dependencies.


Syncopated Eyeball said...

Oh please that they do.

jams o donnell said...

I bloody hope so Syncy!