Argentine Orders Arrest of Credit Suisse’s Mulford, Telam Says

An Argentine judge has ordered the international arrest of Credit Suisse Group AG executive David Mulford for failing to testify in a probe on the events leading to the country’s 2001 debt default, state-run news agency Telam said.

Federal Judge Marcelo Martinez de Giorgi has requested that Interpol assist in locating and requesting the extradition of Mulford in connection to the probe, Telam reported, citing judicial sources it didn’t identify.

A press official for Credit Suisse in New York who said he can’t be named because he’s not responsible for covering Latin America declined to comment when contacted by Bloomberg News on U.S. Labor Day.

A former U.S. Treasury undersecretary, Mulford was chairman of Credit Suisse First Boston International when he was tapped by then Economy Minister Domingo Cavallo in 2001 to engineer a debt exchange amid the country’s financial crisis.

The swap stretching out payment terms on Argentina’s debt didn’t provide enough financial relief to prevent Argentina from defaulting on $95 billion in bonds that same year.

Today, Mulford serves as international vice-chairman of Credit Suisse.

The Buenos Aires court has been investigating for a decade former government officials, including Cavallo, for possible crimes committed during the so-called “mega exchange” with Credit Suisse and other banks.

Telam said that Mulford was unable to testify in the case the first time he was called before the court because he was serving as U.S. ambassador to India. Since stepping down from the diplomatic post, he has refused the court’s request to testify, Telam said.

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