Senator Warren Demands Banks Disclose Role in Argentina Bailout

Senate Banking Committee Ranking Member Elizabeth Warren asked six large banks for details on their involvement in the Argentina "bailout" and whether there was any reliance on taxpayer-backed guarantees.

In her letters, Senator Warren noted the Administration's efforts in organizing a $20 billion private investment vehicle, a $20 billion swap line with Argentina’s central bank, and Treasury peso purchases to support President Javier Milei ahead of midterm elections. (See previous coverage.) She cautioned that bank participation could pose significant credit and reputational risks, given Argentina’s weak creditworthiness. She also questioned whether Treasury intends to offer taxpayer-backed guarantees and urged the banks to reject such support.

Senator Warren requested detailed information on (i) any peso purchases executed on behalf of the U.S. Treasury or Federal Reserve; (ii) communications with the Trump Administration regarding the $20 billion investment vehicle; (iii) the banks’ participation terms, collateral, and due-diligence findings; (iv) any supervisory concerns raised by regulators; and (v) whether the banks have advocated for or would accept taxpayer-funded guarantees.

Senator Warren asked the banks to respond by October 31, 2025.

Note: President Milei and his party won reelection in Argentina's midterm congressional elections.