What: All Issues : Government Checks on Corporate Power : Banks/Credit Card Companies : S. 1920. Bankruptcy Extension and Overhaul/Vote to Instruct House Conferees to Restore Conflict-of-Interest Provisions Which Would Prohibit Cozy Relationships Between Investment Banks and their Bankrupt Clients. (2004 house Roll Call 11)
 Who: All Members
[POW!]
 

To find out how your Members of Congress voted on this bill, use the form on the right.

S. 1920. Bankruptcy Extension and Overhaul/Vote to Instruct House Conferees to Restore Conflict-of-Interest Provisions Which Would Prohibit Cozy Relationships Between Investment Banks and their Bankrupt Clients.
house Roll Call 11     Jan 28, 2004
Progressive Position:
Yea
Progressive Result:
Loss

After filing for bankruptcy, an individual or a business is usually required to restructure their finances in such a way as to allow the repayment of debts over a set period of time. To prevent conflicts of interest over the repayment of debts, bankruptcy rules forbid investment banks from restructuring the finances of their bankrupt clients. Bankruptcy reform legislation which recently passed the House, however, eliminated the conflict of interest provisions and allowed investment banks to work closely with their clients in drafting a repayment plan. The subject of this vote was a motion to instruct House conferees-those lawmakers chosen by their party's leadership to represent the House in conference committee negotiations with the Senate-to reinsert the aforementioned conflict of interest provisions when drafting the final version of the legislation. In the wake of numerous corporate scandals on Wall Street, Progressives argued, the conflict of interest provisions were needed to help insure corporate integrity. If the financial success of an investment bank was closely tied with a bankrupt client, Progressives contended, then the bank would have an incentive to hide or cover-up the financial situation of a bankrupt entity. Conservatives voted against the motion to instruct because, in their view, investment banks are ideally situated to manage the financial restructuring of a bankrupt client because they are already familiar with the financial situation of their client. Hiring a new bank to manage a bankruptcy, Conservatives argued, would waste time and money. On a vote of 146-203, the motion was defeated and House conferees were not instructed to retain the conflict of interest provisions during conference committee negotiations with the Senate.

Issue Areas:

Find your Member of
Congress' votes

Select by Name