U.S. Won’t File Brief for Now Backing Argentina on Bonds

The Obama administration won’t file a brief next week urging the U.S. Supreme Court to hear Argentina’s appeal in a clash with implications for tens of billions of dollars in defaulted debt, according to a Justice Department spokesman.

The decision is a setback for Argentina, though it leaves open the possibility that the administration might recommend high court review at a later stage. The administration backed Argentina at a federal appeals court.