Senate Working On Counteroffer

Yesterday, Senate conferees prpepared to send to the House a bankruptcy reform legislative counteroffer. Aides worked to reach consensus on minor issues before "member-level" matters, according to CongressDaily. Patrick Leahy's (D-Vt.) office declined to discuss the contents of the Senate offer, but Leahy has been working on the counteroffer with bipartisan conferees.

Netting Bill: House Financial Services Committee Chairman Michael Oxley (R-Ohio) stated earlier this week that he would be "absolutely" willing to push for the passage of a stand-alone netting bill, if prospects for passage of overall bankruptcy reform begin to dim.

A number of federal legislators and regulators agree that Enron's collapse highlights the critical need for passage of financial netting provisions to strengthen and clarify the treatment of financial market contracts if a party defaults. There is however, a desire to keep the comprehensive bill intact.