The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Here comes debt swap man again

David Mulford, chairman of CSFB International and long-term friend of the banks, is set to follow such luminaries as JK Galbraith by becoming US ambassador to India. If his past is anything to go by, expect India to do a billion-dollar debt swap within months.

When under-secretary of the treasury for Bush senior, Mulford helped mastermind the Brady bond initiative that guaranteed billions of dollars in emerging-market loans by western investment banks. The banks faced bankruptcy, until the US taxpayer bailed them out through a series of debt swaps coordinated by Mulford.

A decade later, while at CSFB as its version of Citigroup's Bill Rhodes, Mulford helped the banks again, organizing a $29.5 billion debt swap of Argentine debt in a last roll of the dice to prevent a default. The biggest swap in history made bankers rich but failed to prevent the default and was criticized for merely putting off the inevitable.

Things looked bad for Mulford. He was involved in three judicial investigations in Latin America last year - one into an alleged fraud involving the debt mega-swap; one into an alleged joint bank account with Domingo Cavallo, finance minister of Argentina; and one into the collapse of Banco General de Negocios, a Uruguayan bank that had Mulford as a director.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree