Big Investment Banks Win Big in Congress

The major investment banks secured a big win with the Bankruptcy Abuse Prevention & Consumer Protection Act of 2005 (the Act). They quietly convinced Congress to remove the strongest limitation in the Bankruptcy Code (' 101(14)) on a Chapter 11 debtor's employment of an investment banker. That prohibition, in effect since the Depression, had essentially prevented the debtor's retention of a banker for any of the debtor's outstanding securities The securities industry called the statutory ban "anti-competitive."

21 minute readMay 24, 2005 at 09:47 AM
By
Michael L. Cook
Leslie W. Chervokas
Big Investment Banks Win Big in Congress

The major investment banks secured a big win with the Bankruptcy Abuse Prevention & Consumer Protection Act of 2005 (the Act). They quietly convinced Congress to remove the strongest limitation

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