HR 1161 - - 10/24/2000

October 24, 2000

H.R. 1161 - Financial Contract Netting Improvement
Act of 2000

(Rep. Leach (R) Iowa and 2 cosponsors)

The Administration strongly supports H.R. 1161, which would enhance market stability by improving the financial contract netting regime in bankruptcy and bank insolvency. The bill would reduce the impact of the failure of any one institution on the stability of the financial system more broadly. Since 1998, the President's Working Group on Financial Markets, which includes the Secretary of the Treasury and the Chairmen of the Federal Reserve, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, has repeatedly urged the Congress to adopt such provisions. The Administration believes that this is a rare opportunity in which the Government can take tangible steps to mitigate systemic risk and improve the integrity of the Nation's financial system.