EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503
STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
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.