Vulture fund

From RationalWiki
Jump to: navigation, search
The dismal "science"

Economics

link=:category:
Key concepts

  $ Economics
  $ Capitalism
  $ Communism
  $ Socialism

More about economics
Notable economists
Do you trust this bird with your money?

Vulture fund is the popular nickname for a type of profiteering aimed at impoverished countries. Vulture fund investors set up a private equity fund for the sole purpose of literally robbing from the poor and giving to the rich. A typical modus operandi of vulture fund operators is as follows:

  1. A group of investors purchases the debt of an impoverished nation that is on the verge of monetary collapse.
  2. The investors then wait for the United States and/or other wealthy nations to send humanitarian (monetary) aid to that country.
  3. The investors then sue said impoverished nation in an effort to force that nation to hand over the humanitarian aid as payment.

On 8 April 2010, the United Kingdom became the first country to limit the amount that vulture funds can collect. Under the new law, vulture funds cannot collect payments that the World Bank deems unsustainable.[1]

[edit] External links

[edit] Footnotes

  1. Croft, Adrian. "New law limits claims by vulture funds", Reuters UK website, posted 8 April 2010, accessed 10 April 2010.
Personal tools
Namespaces

Variants
Actions
Navigation
Community
Tools
support