Luis “Toto” Caputo He was one of the most responsible for the rapid and high public debt during the Macrista government and was part of the historic debt taking with the International Monetary Fund (IMF). He was involved in fraudulent debt negotiations during his tenure as Secretary, later Minister of Finance and since 2018 presiding over the Banco Centraland close friend of international banking as JP Morgan y Deustche Bankto whom he guaranteed enormous business through the financial speculation and the capital flight. He was denounced for incompatibility of interests in public office by hiding information about his companies and not declaring them, as in the case of the Noctua fund.
The “Messi of finances”, as he had labeled him Mauricio Macri, was the champion of enriching himself and his relatives and banking partners with public money, while he led the country to bankruptcy. Now, he is among the main candidates to lead the Ministry of Economy of the president-elect Javier Miley.
On Wednesday night, on the TN program “A dos vozes” Milei had stated that “Caputo is fit to be in office. He has the necessary experience to dismantle the monetary problem we have and give it a solution from the financial markets to get out of the Leliqs problem and end the stocks.”
Contrary, in 2018 the same Milei had raised that “Caputo irresponsibly smoked 15 billion dollars from the reserves and left us with this disaster of the Leliqs. One of the great disasters of the Central Bank was done by Caputo in two or three months.”
This Thursday at noon, Caputo formally met with the future chief of staff, Nicolas Posse, at the Four Seasons hotel in Recoleta. Beyond the meeting, his eventual appointment is not confirmed.
A few days ago, from his consulting firm Anker, Luis Caputo had said that there will be “an orderly and non-disruptive roadmap for market dynamics” in the new government, and that he ruled out “a scenario of dollarization at any price.” Between the bidding and the fight with Macrismo for the occupation of positions in the new Cabinet team and the little consensus among the business community with the dollarization plan, Emilio Ocampoone of its main promoters, was removed and ruled out from presiding over the Central Bank.
The deputy of Left Front, Nicolás del Cañodenounced on his networks that Luis Caputo is “one of those responsible for the mega-indebtedness of the Macri government, the monumental capital flight and the 100-year bond!! An exponent of the looting and parasitism of financial capital.”
Luis Caputo sounds for Milei’s Ministry of Economy. One of those responsible for the mega-indebtedness of the Macri government, the monumental capital flight and the 100-year bond!! An exponent of the looting and parasitism of financial capital.
— Nicolas del Caño (@NicolasdelCano) November 23, 2023
A key piece in the delivery to vulture funds
Caputo had an important position in the Trading for Latin America from JP Morgan between 1994 and 1998, and held the same position for Eastern Europe and Latin America in the Deutsche Bank between 1998 and 2003. From that year until 2008 he was president of the Argentine headquarters of that bank.
From December 10, 2015 to January 9, 2017, he served as Secretary of Finance of the Nationuntil Macri directly appointed him Minister of Finance (dividing the portfolio between Treasury and Finance) and, later, in the midst of a currency run and a political crisis, a week after the first agreement with the International Monetary Fund (IMF) by U $50 billion in 2018, was appointed to head the Banco Central replacing Federico Sturzenegger.
Among other things, Luis Caputo’s participation had been key at the beginning of 2016 in the “negotiation” (or rather, delivery) with the vulture funds. There, after a vote in Congress with the help of Sergio Massa and some deputies from the Front for Victory, Argentina agreed to pay a million-dollar sum of U$S 9,352 million dollars to a group of debt predatory speculators, such as Paul Singer’s fund, at the same time that it enabled the Macri Government to go into debt for US$16.5 billion.
This validated exorbitant profits that in some cases exceeded 3,000%and for most debt holders it meant receiving 3 times the face value, which is even several times higher than the value with which they acquired the titles. The term “take away” only applies to working people, towards the vultures it was only “daca”.
The path “back” to the markets began, which involved a new cycle of fierce debt, financial scams and capital flight that led to the 2018 exchange crisis and the beginning of the agreement with the IMF.
The former “off shore” Minister
The name of Luis Caputo appeared in one of the leaks known as “Paradise Papers” in an offshore network not declared before the Anti-Corruption Office (OA).
Las offshore companies They are companies that are characterized by being registered in countries in which they do not carry out any activity. For this reason, they are usually located in countries considered tax havens, to benefit from the advantages they offer.
In his presentation at the Congress in 2018 to give explanations to the Bicameral Commission for Monitoring and Control of Contracting and Debt Payment Management. Luis Caputo tried to justify the relationship with an offshore network that links him to the management company Nocturnal in which he appears as “founder”, “indirect owner” and “indirect shareholder” as well as holder of shares in another company in the Cayman Islands.
The companies installed in tax hideouts For decades, they have fulfilled the role of “protection” of capital that escapes from their States seeking evade taxes and launder money; are a necessary mechanism for increasing the capitalist profit.
This explanation is different from the one that Caputo outlined with total cynicism, maintaining that offshore companies “are like a safe deposit box: what you have inside you can have declared or not. “Everyone has to be responsible.” Caputo had maintained that it was just “an administrator” of the Noctua fund, hiding that he came to own more than 75% of shares of these funds as a subsequent investigation proved.