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PRESS RELEASE

For Immediate Release
Contact: (202) 589-2427

Roundtable Calls for Restoration of DOJ Bankruptcy Audit Funding
Funds used to protect from bankruptcy fraud.

Washington, D.C. – January 23, 2008 – The Financial Services Roundtable calls on Congress to quickly restore Department of Justice funding to conduct audits of bankruptcy filers to detect fraud and protect the integrity of the bankruptcy system.

“Nobody benefits when the watchdog is taken off the job,” said Steve Bartlett, President and CEO of The Financial Services Roundtable. “Congress and the Administration should act quickly to restore these funds. The American people deserve to have confidence that the bankruptcy system is functioning fairly and without abuse.”

Yesterday, The Department of Justice announced that it has suspended audits for debtors in bankruptcy. The bankruptcy reform legislation requires DOJ to conduct targeted and random audits to identify fraud and to gather data on the implementation of the reform act. These audits are viewed as key to protecting the integrity of the bankruptcy system, which has been criticized in the past as lacking adequate oversight.

In 2007, the House of Representatives had proposed to cut funding dramatically for bankruptcy audits after bankruptcy lawyers complained. The final spending bill approved late in 2007 adopted funding reductions that led to the suspension of audits. The Administration could send a special request to the Appropriations Committees seeking to transfer funds from another account to DOJ to resume audits (called a "reprogramming" request).

The Financial Services Roundtable represents 100 of the largest integrated
financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.

Roundtable member companies provide fuel for America's economic engine, accounting directly for $65.8 trillion in managed assets, $1 trillion in revenue, and 2.4 million jobs.

The Roundtable and the Housing Policy Council have partnered with other industry leaders to form HOPE NOW. HOPE NOW is an alliance between counselors, mortgage market participants, and mortgage servicers to create a unified, coordinated plan to reach and help as many homeowners as possible.

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