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BUSINESS BRIEFING / GLOBAL ECONOMY

Argentina may nationalize funds

October 22, 2008|Times Wire Reports

Argentine President Cristina Fernandez has signed a bill to nationalize nearly $30 billion in private pension funds in response to a financial crisis.

Fernandez says that while the U.S. and European Union are stepping in to rescue their banks, Argentina must protect retirees whose stocks and bonds are falling because of the global meltdown.

Argentine stocks plunged 11% after word of the announcement leaked.

Opponents say the government is scrambling for cash to prop up falling tax revenue.

The bill needs approval in Congress, where Fernandez's party has a majority.

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