The bankruptcy reform bill--the first legislation introduced under the Bush Admin--has been a cash cow for Dems and Repubs. Indeed, Sen Dashle is a Dem from SD and is an effective advocate of his hometown company: Citibank. But that is another story.
When I testified against the bill at the 2/01 Senate Judiciary Commitee hearing (Orin Hatch really does look like a wax figure!), with both houses then controlled by the Repubs, the bank lobbyists were confident that their time had finally arrived; MBNA and Ken Lay bankrolled the President's inauguration festivities. They were even offering me champagne. I thought it was peculiar that Schumer did not protect me as a 'friendly' witness (Biden was a crazed mercenary who enjoyed grandstanding on CNN) and found out later that he and Clinton took bank PAC money and voted for the bill. However, he was able to add his abortion clinic amendment to the final Senate bill.
The three major points of contention that consumer groups were successful in highlighting underlie the key differences between the House and Senate versions: 1) financial means testing so that households can not discharge their unsecured consumer debts if it is some how possible to repay at least 25% over five years like hospital bills or household is close to state median income (i.e., curb Chapter 7 liquidation), 2) reduce the homestead exemption so that the Ken Lays can not payoff their mansions and retain their estates (Texas has unlimited homestead exemption), and 3) exclude abortion clinic bombers from filing for personal bankruptcy to avoid court mandated financial restitution/compensation. There are several important provisions that are very harmful to small businesses but, not to worry, they will not be applicable to the WorldComs, etc Also, it is important to note that individual states have the option of not accep! ting federal bankruptcy guidelines such as Texas with its unlimited homestead.
So, on Friday (final day before the summer recess of HOUSE), the Dems had buckled to the Repub House leadership (after the Fast-Track agreement) and handed the Repubs their long awaited bankruptcy reform bill. Interestingly, several lameduck legislators on these committees were cutting their final deals so the negotiations were often unpredictable. Still, the deal was seemingly done through Congr. Hyde and the Dems were prepared to shamelessly jet out of town. But, the ultra-right Repubs got greedy and demanded that the 'Schumer' amendment be deleted. House Dems could not believe their luck as they had delivered their well paid votes to the banks and the bill is again held hostage to a handful of anti-abortionist ideologues.
In sum, the Dems can demand more PAC money from the banks and blame the Repubs for not delivering THEIR bill. What a great system!
bob manning
Rochester Institute of Technology
www.creditcardnation.com
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