NTU urges all Senators to vote "YES" on the Sessions amendment (#3832) to S. 3217, the misnamed "Restoring American Financial Stability Act."
As it is currently written, S. 3217 effectively exempts the largest financial institutions from the Bankruptcy Code at taxpayer expense. This approach, which severely undermines the Code, puts large firms at a competitive advantage over smaller firms by giving the federal government authority to subjectively determine which institutions are "too big to fail."
The Sessions amendment would strike the Orderly Liquidation Authority from the Dodd bill and make a few necessary adjustments to the Bankruptcy Code to ensure a more orderly wind-down process for institutions, one that is free from the bailout mentality and political influence. It would increase flexibility and place costs where they belong – on financial institutions and their creditors, not taxpayers.
Our leaders continue to expand government, and the Dodd bill is no exception. While bankruptcy is never desirable, our system enables financial institutions to make a fresh start. In the interest of fiscal responsibility and real financial reform, we ask every Senator to support the Sessions amendment.
A "YES" vote on the Sessions amendment will be significantly weighted in our annual Rating of Congress.
If you have any questions, please contact NTU Federal Government Affairs Manager Jordan Forbes at (703) 683-5700