US wrestles with bankruptcy-based resolution regime

Political divides undermine efforts to bolster insolvency process

After nine months of political debate, a bill that will deliver a much-needed overhaul of the way in which the US bankruptcy code handles the resolution of a failing bank has at last passed through the House of Representatives.

The future of the bill – HR2947 – is uncertain, however, with passage through the Senate and presidential assent far from assured. A successful move by Republican members of the House Financial Services Committee to pass an associated bill, repealing the Dodd-Frank Act's