The so-called Justice Against Sponsors of Terrorism (JASTA) would amend
current law to allow victims of terrorist
attacks on U.S. soil to sue countries that are not formally designated
as sponsors of terrorism — like Saudi Arabia.
As reported before, the implications for capital markets should the
House follow the Senate in overriding Obama's veto,
they could be dramatic: as noted earlier, the threat of the 9/11 bill
passing has put on hold Saudi plans to issue its megabond,
effectively putting even more pressure on the kingdom's finances;
alternatively as Saudi Arabia has threatened before, should
the bill pass, it would (and may have no other choice considering its
liquidity crisis) have to sell US reserves, among which
billions in Treasurys and an unknown amount of US equities.
* * *
Update: moments ago the House also overrode Obama's veto, meaning that
as of this moment, the Sept 11 bill is now law.
