Senate rejects bankruptcy-only option in bank bill

WASHINGTON (BestGrowthStock) – The Senate on Thursday rejected a measure that would steer troubled financial giants toward bankruptcy, rather than a new process that would allow the government to seize and dismantle distressed firms.

By a vote of 42 to 58, the Senate rejected the proposal by Republican Senator Jeff Sessions, who argued that the process contained in a sweeping rewrite of financial regulations would be open to political or legal manipulation.

Democratic Senator Christopher Dodd, who is overseeing the Wall Street overhaul, argued that regulators need a quicker method than bankruptcy to avoid a repeat of the chaos that followed the 2008 bankruptcy of Lehman Bros.

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Senate rejects bankruptcy-only option in bank bill