Sen. Elizabeth Warren (D-Mass.) took to X on Monday to accuse Treasury Secretary Scott Bessent and President Donald Trump of "buying" Argentina's midterm elections for their "political ally" Javier Milei and enriching hedge funds.
Warren's Post Targets Bessent's Argentina Financing Push
"You and Donald Trump bought the election for your political ally in Argentina and made hedge fund investors richer. When will working Americans get bailed out from your disastrous policies?" Warren wrote, quoting a Bessent post congratulating Milei.
Trump publicly hailed Milei after his party's comeback legislative win Sunday, portraying the result as vindication for Washington's extraordinary backing of Buenos Aires under Milei. In recent days, Trump and Bessent have touted the support as part of a broader strategy in the hemisphere.
Unusual $20 Billion Swap Draws Intense Scrutiny
As noted in an Associated Press report, at the center of the fight is a $20 billion currency-swap arrangement the U.S. Treasury finalized with Argentina's central bank earlier this month, paired with open-market peso purchases and a complementary $20 billion private financing facility Bessent has courted from major U.S. banks. The structure is unusual for U.S. support to a foreign central bank and has drawn scrutiny over risk, collateral and process.
Bessent, a longtime foreign-exchange investor before joining Treasury, has defended the package as vital to stabilize a key regional ally and counter China's influence. He also amplified Milei's win in a congratulatory post that Warren referenced. Bessent, as per Reuters, has also argued that taxpayers won't lose money on the swap and that private lenders will proceed only with adequate protections.
Barbs, Bank Warnings And Market Rally Aftermath
The rhetoric has turned personal. On Friday, Bessent labeled Warren an "American Peronist" on X after she urged JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C) and Goldman Sachs Group Inc. (NYSE:GS) not to finance the proposed $20 billion loan. Hours earlier, The Wall Street Journal reported banks were balking without stronger collateral or guarantees.
Warren has pressed both Treasury and bank CEOs to back away, warning of taxpayer exposure and uncertainty over Argentina's ability to repay. Trump allies counter that the measures supported market stabilization ahead of the vote and strengthened a friendly government. Milei‘s landslide victory in Argentina’s midterm elections over the weekend sent the country's stocks and bonds surging on Monday in a show of confidence.
Photo courtesy: Sheila Fitzgerald / Shutterstock.com
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