LITTLE MOVEMENT IN SENATE ON REFORM BILL

August 2, 2003

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Informed sources report that there has been no activity on the anti-consumer bankruptcy reform bill in the Senate. The bill passed in the House in March.

An abortion clinic amendment pushed by Senator Schumer is still a problem for reform backers. The Senate rules make it difficult for the bill to pass in the Senate with Schumer’s objection to a bill without the amendment. There are no indications that Senator Schumer is willing to entertain a suggestion to put his amendment up for a simple vote despite being urged to do so by pro-reform legislators.

Another sticky-wicket . . . The SEC recently came out with opposition to an amendment contained in the Reform bill that removed long-standing conflict-of-interest prohibitions on investment banking firms advising companies in bankruptcy.

Opponents of the Reform bill continue behind the scenes to educate legislators on problems with the Reform bill. Some Senators have agreed to sponsor amendments proposed by Reform opponents. NACBA (National Association of Consumer Bankruptcy Attorneys) continues its vigilant watch in Washington, and maintains communication with key Senators.