20 Jan Obama White House Position on Bankruptcy Laws
The White House website has been updated to announce the Obama administration position on changes needed in the bankruptcy law. The administration promises to reform corporate bankruptcy laws to protect workers and retirees. Bankruptcy and credit card laws were included on the list of promised reforms.
The information posted by the incoming administration complains that banks receive more protection in bankruptcy than workers. The administration proposes to increase the priority of debts due workers on the list of creditors in bankruptcy. It would also prohibit the issuance of executive bonuses if workers pensions are cut. While the proposal would not prohibit the reduction of retirement benefits, it would allow such changes in more limited circumstances. Detailed disclosure of pension fund investments would be required on an annual basis.
Consumer bankruptcy reform is also mentioned on the website but I did not see a specific proposal offering changes that will help consumers. The agenda on the campaign website expressly included modification of home loans. Has the transition to the White House softened the Obama position on this much needed change to help consumers?
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