End of the Internship...

This week marks my final week here at Jubilee USA. I have learned a lot from this experience and will miss the people I work with very much. I have also learned how difficult it is to work for a non-for-profit. Money really dictates what you can and cannot do. You can't say certain things, as you do not want to alienate any of your supporters or donors. It is a thin line to walk, especially when you are advocating for things and want to get people fired up but not pissed at you for putting a picture of a car fire on an email.
I have also learned a lot about vulture funds and am disheartened and disgusted by the behavior that some hedge funds have taken against the poorest of nations. Over Thanksgiving week, 2 vulture funds were awarded a judgment summary of $20 million from Liberia. This is particularly disturbing because Liberia had previously participated in a debt buy back with the IMF and World Bank and were the model for how countries can change their economic future.

More on Vulture Funds

Hey all - for those who were asking, here is more on Vulture Funds. Unfortunately, many do not take the issue seriously enough, or think that it is some sort of scheme that African countries are making up to gain more aid. I think that I am going to be able to use Vulture Funds as a huge part of my thesis, maybe even my hypothesis, so I am really excited to be immersed in the work going on right now.

October 16th, 2009

Is Russ Feingold joining the war on vulture funds?

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Posted by: Felix Salmon

Tags: law, vulture funds

Remember the silly war on vulture funds being waged in the UK and, in the US, by Congresswoman Maxine Waters? Well, I have good news and bad news. The bad news is that it’s making its way into the US Senate: Russ Feingold, the chairman of the Subcommittee on African Affairs, is thinking of introducing legislation of his own. The good news is that his staffers are reaching out to people like me, and seem genuinely interested in trying to understand the issues and the potential negative consequences of any legislation.

I just had a pretty long conversation with three of Feingold’s staffers on this subject, and they were asking if there was any way that they might be able to introduce a bill which curtailed some of the most egregious actions of vulture funds while not going as far as the Waters bill. I told them that the short answer is no: debt markets would react very badly to any attempt to prevent or impede trading debt instruments in the secondary market. And what’s more, none of these bills would make the problem of developing-country debt go away: it would simply keep that debt in the hands of original creditors, who might well start employing more vulture-like tactics to get their money back if they were prevented from selling their claims.

Feingold is commendably concerned about the fate of small African countries, who might be in the position of receiving hundreds of millions of dollars of debt relief from the US government, only to find that freed-up cashflow suddenly eyed by greedy vultures. And he doesn’t want hedge-fund types receiving any part of the money that Congress apportions to developing-country debt relief. I’m sympathetic. But the fact is that vulture funds have been having a dreadful time of it recently, and are losing cases much more frequently than they’re winning them. The total amount of money that’s at issue here is minuscule, compared to the enormous effect that it could have on the capital markets as a whole. The whole issue of vulture funds looks very much like a solution in search of a problem.

I told Feingold’s staffers that they should be sure to talk to a range of developing countries about their legislation — not just the poorest countries whose debt would be directly effected, but also richer countries who might see their credit spreads widen if Congress started messing about with the enforceability of sovereign debt obligations. Even the poorest countries aspire to tapping private capital in future, and might be very wary of legislation along these lines.

More generally, it might behoove market participants and industry groups to start talking seriously to Feingold’s office on this subject, especially if they can put together some hard data on just how much money we’re talking about here. It certainly makes sense to try to quantify the scale of the problem before putting a huge amount of effort, not to mention enormous knock-on consequences in the market, into some kind of solution.

Internship Update

So I am in my 4th week here at Jubilee USA. It has been a strange adjustment to go from a corporate desk to one of a non-for-profit. Our computers are in desperate need of an IT review, but there is no IT person. Aside from the obvious $ problems, the job is fantastic. I am learning so much about things that are really important to me, as well as information that will greatly aid my thesis.
My direct supervisor, Julia and I often head up to the Hill and meet with Congressional Staffers to advocate (lobby without the salary) for The Stop Vulture Funds Bill H.R. 2932. Please read this explanation:

‘Vulture fund’ is a name given to a company that seeks to make profit by buying up debt in default on the secondary market for pennies on the dollar, then trying to recover up to ten times the purchase price, often by suing impoverished countries in U.S. or European courts.

Some vulture funds target failing companies, but Africa Action, Jubilee USA Network and TransAfrica Forum are focused on those that target the sovereign debts of impoverished countries.

These vulture fund companies tend to be quite secretive, and many of them are based in tax havens such as the British Virgin Islands. Some are owned by large, often U.S.-based, financial institutions such as hedge funds. In other cases, there is limited or no information on who owns them. Often subsidiary companies are set up by these larger hedge funds simply to pursue one debt, then shut down after winning those assets.

I really like that I get to work on something that is truly an issue I can get behind as well as something that can make a difference in people's lives.

Gall Bladder Extraction Adventure

A week after returning from London, I ended up in the ER. I had been having some pain in my right upper quadrant (under my ribs) for quite some time. This Tuesday, the pain became too much for me to bear. I went to the ER. That is where the fun began. I was being admitted into the hospital, but there were no beds so I stayed in the ER. The ER is not a place you want to be if you are tired or even want to sleep. The older gentleman next to me was SUPER annoying. He ripped out his IV twice and bled everywhere so the staff had to clean it up. He also screamed, "HELP! HELP!!" about every 20 minutes. It was awesome.
At 9:15 a woman comes in and says, "I have bad news, (I was thinking they were going to say I have to wait another day to have the surg) We need to move you into the hall since we need the beds and you are a non-urgent patient. So I sat on the stretcher from 9:15 until 1pm when the OR staff finally came to get me. I don't remember anything from the time they put something in my IV (anesthesia) until they woke me up in recovery.
I was really hoping to go home, but they kept me another night - woo hoo! I do not like staying in hospitals. My neighbor was a very strange and whiney and I almost told her to shut up, but she obviously needed the attention from the nursing staff.
I came home on Thursday afternoon and can't drive until the pain goes away, but I am hoping for that soon. So all things considered, I am doing just fine.
Hope all are well!

Yay!

Well I made it home safely and it has been so nice to sleep in my own bed, eat tomatoes fresh from mom's garden and visit Wawa. I haven't had much jet lag yet -so that is good.

Great news: I got my internship with Jubilee USA and I am so excited. This is going to be a tremendous opportunity. I cannot wait!!!

Things I have learned....

My study abroad has been a truly wonderful experience and I know that I am tremendously fortunate to be able to be here. In my time here I have gotten to visit so many wonderful places outside of London like Bath and Salisbury here in England. I have also gone to Brussels, Bruges, Salizburg, Edinburgh, Rome, Florence, Venice, and Paris.

here are a few things I have learned:

I can navigate London, if you tell me that the place I am going to is a short distance from a tube station. Otherwise forget it.
I am crap with maps.
If you are waiting for a bus here in London, it will inevitably not show up. For instance, when we went to see Katy Perry, there was a tube strike. So we waited 45 minutes for a bus that never came.

Brits have terrible taste in music. I always have the DUMBEST songs stuck in my head.
I have adopted certain phrases and they will probably stick with me such as, "that is lovely" or saying "proper" a lot.

I love this city. Living here permanently is not going to work for me. Their beer is never cold enough, nor is there is solid drinking beer like yuengling or miller lite.
What is with the no free refills and the miniature drinks?

I love how accessable Europe is from London. It is so wonderful.

I will miss London desperately, but can't wait to try something new.
Baltimore and DC here I come...

Wednesday Night Rambling

Well, it is two weeks until I will be back on US soil for the 1st time in so many months. I cannot say that I am not sad to leave London, but am quite pleased to be going home. I miss my bed and my ceiling fan and of course my family. I will miss the beautiful and eclectic city that London is. It really is a gateway to the rest of the world. The city is filled with millions of people from all over the place. Lauren works with people from all over the place, not just the UK. It is truly unique, like my favorite place in the city - Camden Market. It is the coolest market filled with stalls that are so random and fabulous at the same time. There is the Goth booth filled with all sorts of earrings (?) for all of your assorted piercings next to an Indian booth filled with beautiful tapestries and pashminas next to the girly-girl dress shop. It is so much fun to go and walk around to see all of the wares for sale. I will miss treking there to find a funky birthday present or just for something to do.

Strange as it may seem, I really want to get back to a job. While not working has been extremely relaxing, it is also boring! I also miss the steady cash flow. I am ready to leave London in that regard as well.

This weekend Lauren, Ilani (a co-worker of Lauren's who has become a wonderful friend) and I are going to Paris for a short trip. It is hard to be so close to the city and not go. After that, just a short week until I go home, oh and a U2 concert!!!!! (My tickets arrived and I am STOKED).