Warren Presses Big Bank CEOs on Plans to Participate in President Trump’s Bailout of Argentina at the Expense of American Taxpayers

Warren Presses Big Bank CEOs on Plans to Participate in President Trump's Bailout of Argentina at the Expense of American Taxpayers

"I assume your bank would not avail itself of a taxpayer-funded guarantee, given broad public concern regarding the apparent Wall Street beneficiaries of the bailout, at a time when Americans are struggling to afford rent, groceries, and health care here at home."

Letter to Morgan Stanley | Letter to Goldman Sachs | Letter to Citi | Letter to Bank of America | Letter to JP Morgan | Letter to Wells Fargo | Letter to Santander

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent letters to six major Wall Street banks raising concerns over their potential role in the Trump Administration's plans to further prop up Argentina's financial markets through a private $20 billion investment vehicle and seeking their commitment that they will not avail themselves to any taxpayer-funded guarantee offered by the Treasury Department. Ranking Member Warren also sent a letter to Santander seeking information on the bank's reported role executing purchases of Argentine pesos on behalf of the U.S. government. Treasury Secretary Scott Bessent described the Argentina bailout as "mission-critical" in a previous response to the Ranking Member.

"In addition to establishing a $20 billion swap line with the Central Bank of Argentina, the Trump Administration is reportedly arranging a private $20 billion investment vehicle and pushing U.S. banks to participate," wrote Ranking Member Warren. "Treasury has also reportedly purchased hundreds of millions of dollars of Argentine pesos in the open market, executing these trades through banks that have yet to be officially disclosed."

The Ranking Member raised concerns over the risks a $20 billion investment facility would pose to American taxpayers:"It would raise serious safety and soundness concerns if your bank chooses to participate in this $20 billion investment vehicle, given the shaky creditworthiness of Argentina and its apparent lack of valuable collateral against which to secure a loan. To assuage concerns regarding Argentina's ability to repay, the Treasury Department has declined to rule out offering banks a taxpayer-funded guarantee. I assume your bank would not avail itself of a taxpayer-funded guarantee, given broad public concern regarding the apparent Wall Street beneficiaries of the bailout, at a time when Americans are struggling to afford rent, groceries, and health care here at home."

Ranking Member Warren concluded by requesting answers to her questions on the banks' role in the Administration's bailout of Argentina and plans to avail themselves of a taxpayer-funded guarantee no later than October 31, 2025.

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