CUNA Warns Against Breaking Apart Bankruptcy Reform Bill

WASHINGTON-CUNA President and CEO Dan Mica wrote the House leadership last week that the trade association does not want the “netting provisions” from the bankruptcy reform bill inserted into the 9/11 Commission Report legislation. “The Credit Union National Association is a strong supporter of bankruptcy abuse reform legislation. It has been one of the top legislative priorities for credit unions for many years,” Mica wrote in the Sept. 28 letter. “While we agree that the netting provisions are important,” he added, “we object to the piecemeal approach that this effort represents and instead support their passage as part of the bill already passed twice this Congress by the House.” Mica concluded, “Rather than break the bankruptcy reform bill apart, we urge the House to continue its efforts to help the Senate find a way around its current impasse on this bill.” The letter was sent to Speaker of the House Dennis Hastert (R-Ill.), Majority Leader Tom DeLay (R-Texas), Majority Whip Roy Blunt (R-Mo.), Chief Deputy Majority Whip Eric Cantor (R-Va.), Rules Committee Chairman David Dreier (R-Calif.), House Republican Policy Committee Chairman Chris Cox (R-Calif.), House Republican Conference Committee Chairman Deborah Pryce (R-Ohio), and Judiciary Committee Chairman Jim Sensenbrenner (R-Wis.). The so-called netting provisions would permit financial institutions in liquidation to pay the difference on their debts to other institutions rather than each institution paying the full amount. The move was expected to be made during a hearing Sept. 29 in the House Financial Services Committee. Breaking the bill apart piece-by-piece would weaken chances for H.R. 975′s (The Bankruptcy Abuse Prevention and Consumer Protection Act’s) passage. If this provision were removed, CUNA said, the Chapter 12 farm protection could be next. These items and others have been used as leverage to get the entire package, which has been stalled in the Senate, passed.