----- Forwarded by Mark Taylor/HOU/ECT on 02/28/2001 04:44 PM -----

	Stacy Carey <SCAREY@ISDA.ORG>
	02/28/2001 03:52 PM
		 
		 To: US REGULATORY COMMITTEE <USREGCOMM@isda.org>
		 cc: "'Frank Hampton'" <fhampton@bondmarkets.com>, "'Seth GROSSHANDLER'" 
<sgrosshandler@cgsh.com>
		 Subject: Bankruptcy Update


Senate Activity - The Senate Judiciary Committee completed its mark-up today
on S.220.  Senator Schumer offered an amendment reflecting the majority of
our amendment package.  The Schumer Amendment was adopted except for
provisions relating to Section 708 which received objection by Senator
Grassley.  Schumer's staff indicated they will attempt to work this out
w/Grassley before floor consideration tomorrow.

House Activity - The House Rules Committee made in order the Oxley-LaFalce
amendment, which reflects the majority of our netting amendment package.
Better news is that the amendment is alloted only 10 minutes of debate.
Note that the Financial Services Committee was not able to get language on
Section 708 and the SEC savings language included in the legislation due to
objection by the House Judiciary Committee. The amendment will be offered on
the House floor tomorrow.  Attached is the Oxley Amendment filed with the
Rules Committee and the letter we circulated to Chairman Drier, House
Leadership, and contacts on the Financial Services, Judiciary and
Agriculture Committees.  The SEC issue prevented release of our letter
earlier because they would not authorize PWG agreement without the savings
clause language.  They were convinced to withdraw their objection on a
promise that the Financial Services Committee would work to get this
language adopted in conference. Additionally, we understand that Chairman
Sensenbrenner may grumble about the Oxley amendment but will not raise any
formal objection.

To the extent you are able I would recommend sharing our letter with any
contacts you have with Members that are inclined to be involved in
tomorrow's debate and are inclined to be helpful -- particularly those on
the Financial Services and Judiciary Committees.

Note:  Due to the SEC snafu we were not able to circulate the letter to the
Senate today.  We are attempting to rework the letter to reflect the Schumer
amendment in hope that it still may be useful tomorrow.






 - HR333_002.PDF
 - Netting Amendments.doc