POLITICIANS ARE STILL AT STANDOFF- NO CONFERENCE COMMITTEE DEAL YET

May 12, 2001

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I never thought I would say it, but thank God for politicians. The terrible changes to the Bankruptcy Code that are poised to become law are still in the ‘Twilight Zone’ thanks to Congressional bickering.

According to the American Bankruptcy Institute, the bankruptcy legislation (S. 420, H.R. 333) remains stuck as negotiations between Senate Democrats and Republicans have broken down over the make-up of the conference committee. While both sides have offered a number of scenarios over the past few weeks, Senate Majority Leader Trent Lott (R-Miss.) and Senate Minority Leader Tom Daschle (D-S.D.) have been unable to reach a compromise.

Even though Lott and Daschle last week announced that an agreement was nearing, on Wednesday both leaders said that the talks have been stalled. Daschle wasn’t too upset over the announcement, however. “We’re [Democrats] content with the current circumstances,” he said.”I don’t have a problem with not having conferences ever, if that’s his [Lott's] decision.”

Lott said the stalemate is due to a hectic Senate floor schedule, which has left leaders strapped for time. But Daschle blamed Republicans, who were already upset with Lott when he agreed to a 50-50 split on standing committees, and said that they were unwilling to accept any conditions on Lott’s tie-breaking conference vote.

Daschle said that Republicans need the conferences to be set up more than Democrats, so Republicans can push President Bush’s agenda through Congress. Lott scoffed at the remark, saying that Democrats also needed the situation cleared because they wouldn’t be satisfied without action on bills such as education and campaign finance reform.

The inability to decide on the makeup of the conference committee has held up the bankruptcy reform legislation for almost two months. Congress is scheduled to adjourn for the Memorial Day recess on May 25, returning on June 5.