Senate Closer to Passage of Bankruptcy Bill

The bankruptcy bill is closer to passage in the Senate as the Republican majority defeats Democratic efforts to soften the bill.

The bankruptcy bill’s speedy passage through the Senate was slowed a bit today by discussions regarding a Democratic proposal aimed at preventing conflicts of interest in the securities industry.

The proposed amendment would have prevented investment banks from representing a company or defrauded creditors in bankruptcy when the investment bank had previously advised or financed securities offerings by the company. The proposal was sponsored by Sen. Patrick Leahy, D-Vt. and is said to be in response to recent corporate scandals. The proposal seemed to have the support of some Republicans; however, it was defeated today in a 55-44 vote.

Democratic Senators feel that the bankruptcy bill is aimed in favor of the credit industry at the expense of low-income workers, minorities, single-mothers, and the elderly. In spite of Democratic efforts to soften the bankruptcy bill, the Republican majority has thus far remained successful assuring that the bill remains as written.