Source: https://www.motherjones.com/politics/2025/09/trump-argentina-bailout-hedge-fund-billionaire-rob-citrone-scott-bessent/

The $20 billion U.S. bailout of Argentina provided major benefits to hedge fund billionaire Rob Citrone and his fund Discovery Capital, which had made heavy investments in Argentine debt and equity closely tied to the country’s economy. Citrone is personally connected to U.S. Treasury Secretary Scott Bessent, and multiple sources report that Citrone lobbied Bessent for rescue measures when his bets on Argentina soured as the country's economy deteriorated under President Milei.

The bailout’s timing and structure allowed Discovery Capital and similar investors to avoid catastrophic losses using U.S. taxpayer money, sparking accusations from economists, lawmakers, and reporters of crony capitalism and favoritism toward politically connected hedge funds.

Key Details

• Rob Citrone’s Discovery Capital invested heavily in Argentine assets on the bet that President Milei’s economic reforms would spur recovery.
• As Argentina’s economy faltered, Citrone reportedly pressed his friend Bessent (now U.S. Treasury Secretary) to arrange financial support.
• The $20 billion bailout, primarily involving the U.S. buying pesos and offering swap lines, propped up Argentine asset prices, enabling hedge funds to exit or mark up their positions.
• High-profile critics, including Nobel economist Paul Krugman and Senator Elizabeth Warren, accused the Trump administration of channeling aid in a manner that disproportionately aided Bessent’s hedge fund “buddies," particularly pointing out Citrone’s privileged role and lobbying—in line with classic crony capitalism.