Changes to bankruptcy code included in financial services budget bill in House

an article from The Wall Street Journal

WASHINGTON—Legislation to make the bankruptcy of a big bank more feasible is gaining steam on Capitol Hill, a development that could help the largest U.S. financial firms counter criticism that they remain “too big to fail” without a taxpayer bailout.

Changes to the bankruptcy code were included in a financial-services budget bill the House passed Thursday, along with other regulatory provisions such as congressional oversight of the Consumer Financial Protection Bureau’s budget.

But unlike other provisions, the bankruptcy legislation has broad support. That gives it a chance to become law this year.  Read More…