Ep. 113: Jay Newman on the Hidden Story of How Money is Moved Around the World

Jay spent 40 years in international finance, including at Elliot Management and Lehmans. His primary focus was on distressed EM sovereign debt. He was central to the historic 15-year fight to recover billions of dollars in defaulted Argentine debt. That campaign, which included the court-approved seizure of an Argentinian Navy ship in Ghana with 200 people aboard in 2012, reached a successful conclusion in 2016. The Wall Street Journal reported that the settlement was worth $2.4 billion, a gain of roughly 10 to 15 times the original investment. The Financial Times said the settlement ‘is seen as one of the greatest hedge fund trades’ in history. Jay has now switched to writing with his debut novel, about dark money and global politics, Undermoney. On this podcast we discussed: 

1. How to sue a country 
2. The problem with EM debt today 
3. Drug cartels and sanctions 
4. How countries like Russia evade sanctions 
5. How the US military mishandles billions of dollars 
6. The untraceable legal structure used by the rich to move money around 
7. What undermoney is 
8. How illicit money is moved through central banks  
9. London as money a laundering centre 
10. Book recommendations from Jay: The Painted Word (Wolfe), Harlot’s Ghost (Mailer), Special Topics in Calamity Physics (Pessl), The Goldfinch (Tartt),  A Gentleman in Moscow (Towles) 

You can find Jay’s book here and follow him here. 

Read the full transcript here.

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)