The House voted yesterday to add a new section to the Bankruptcy Code specifically for banks, a measure meant to provide an alternative to President Obama's financial reform law for ensuring that big banks can fail without bailouts, the Washington Examiner reported today. The legislation "ensures that shareholders and creditors, not taxpayers, bear the losses related to the failure of a financial company," said House Judiciary Committee Chairman Bob Goodlatte (R). The Republican House passed the bank bankruptcy legislation last Congress, but it was not taken up by the then Democratic-led Senate. Republicans in the Senate have not advanced similar legislation this year.
