Grassley Not Optimistic About Reform Legislation

Although he maintained a high level of confidence in the past while he served as the Senate's sponsor of the bankruptcy reform legislation (S. 420), Senator Charles Grassley (R-Iowa) stated yesterday that he wasn't hopeful about the legislation's prospects. When asked what his prognosis was for the bankruptcy bill, Grassley said "No. Not as long as it is going to conference with a majority of conferees against the bill."

Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) indicated yesterday that he is still working on a list of conferees and is trying to determine what the partisan ratio on the conference committee should be. Grassley expects Sens. Edward Kennedy (D-Mass.) and Charles Schumer (D-N.Y) to join Leahy in conference. Sen. Joseph Biden (D-Del.), who supports the bill, is also a possible conferee. Senate conferees could be named today or tomorrow.

Although most Senate Democrats voted for the bankruptcy bill when it passed earlier this year, observers feel that things may change in conference. The final compromise product could be difficult for the credit industry and House Republicans to accept. House Republicans reportedly remain adamant about not accepting the Senate's language on a homestead cap and debts arising from abortion clinic violence, but Leahy maintains that his goal in the conference is to preserve the Senate language.