United States and Ten Other Countries Vote Against Super Majority
by Sophia Har
The UN General Assembly passed a historic resolution to begin treaty negotiations to enact a global bankruptcy process and stop predatory hedge funds. The resolution passed by a super-majority vote of 124-11 with 41 abstentions. The US voted no along with 10 other countries. The bankruptcy process could make it more difficult for hold-out investors to block countries from debt restructuring and could limit future defaults.
"The strong majority vote shows how powerful the global consensus is to stop predatory financial behavior," noted Eric LeCompte, Executive Director of the religious debt relief organization, Jubilee USA. "If we are going to solve what global leaders believe is the root cause of inequality, we need a bankruptcy system in place." LeCompte serves on UN expert groups working to create an international bankruptcy process.