On the recordMay 13, 2010
With smaller entities, I can see the case where they should go to bankruptcy, and that may happen. We are talking about very complex, interconnected ones. My colleague is correct, by the way. I should have made note of this. We did try. And, again, it is not the fault of the Judiciary Committee. They have been overwhelmed with judicial nominations and everything else. The present bankruptcy process does pose an issue with large, complex entities for the very reason I outlined, and therefore you need some mechanism because then the alternative is bailout, I presume, rather than having a lot of innocent companies fail, with a lot of unemployment occurring and damage to the economy. There is a step that will have to be worked on. I don't disagree on GSEs. I care deeply about that, and it is an area that needs to be reformed. But at this juncture, to strip this out is to throw us right back. My concern is not what else needs to be done down the road, but if you strip this out at this juncture, we leave ourselves very vulnerable.
