The Market Ticker
Commentary on The Capital Markets- Category [Bank Reform]

It does!

The Financial Institution Bankruptcy Act enjoys broad bipartisan support and has received little public examination. Not much will be said about it on Monday either. The bill will be considered under suspension of the rules, meaning it cannot be amended and will be subject to limited debate, though to pass the House it will need to attract a two-thirds vote.

Have you heard of this bill?  I hadn't.

Bachus, Conyers and Goodlatte wrote it.  You'd think they'd be talking about it.  You'd be wrong.

It sounds good on the surface -- it creates a specific section of the bankruptcy code for big banks.  That's good.  What's not so good is what it doesn't do.

It doesn't prevent taxpayer bailouts.

It forces a 48 hour stay on counterparty demands - potentially ruinous in a "fast" market where leverage is very high.

And it has, and will receive, little or no public exposure.

Is this the sort of government you think we should have?

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