Although this legislation died along with all other unfinished bills in the 114th Congress, the issue it addresses – SIFI resolution – is a major one set for consideration early in the 115th Congress. The position taken by senior Democrats in this measure is thus a significant indicator of how the minority party will position itself now that an Obama veto of any GOP rewrites is no longer their backstop. If this bill is any guide to the thinking of several senior Democrats sure to be actively engaged, their position has shifted to one of significant skepticism about the bankruptcy-reform provisions previously approved on a bipartisan basis in the House. These Senate Democrats are now also suggesting considerable reservations about how the orderly-liquidation authority (OLA) provisions in Dodd-Frank will work with or without this reform. This may not only impede action on bankruptcy reform in this Congress, but also significantly complicate the way in which Democrats address GOP proposals to repeal OLA.
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