Wall Street Slams NY Lawmakers Over Sovereign Debt Bill

  • New York state politicians unveil updated proposal in Albany
  • Investor trade groups warn of unintended consequences of bill

Kathy Hochul

Photographer: Jeenah Moon/Bloomberg
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Tension is rising between Wall Street and New York lawmakers over a state bill meant to overhaul the process of re-negotiating defaulted government debt.

Lawmakers in Albany unveiledBloomberg Terminal the Sovereign Debt Stability Act on Wednesday, a bill that stands to ramp up oversight on how debt from defaulted nations is restructured with creditors. Just minutes before the official announcement, though, a cohort of trade organizations came out strongly opposing the proposal.