Senators Continue To Float State Bankruptcy Option

Law360 (January 25, 2011, 7:19 PM EST) -- Republican senators Tuesday were reportedly looking into a bankruptcy option for ailing state governments even as a House Republican leader and several state officials pooh-poohed the idea.

"We're exploring that as a responsible option," Sen. John Cornyn, R-Texas, told reporters Tuesday, according to Reuters.

But Senate Minority Leader Mitch McConnell, R-Ky., said no decision has been made about introducing legislation and that, in any event, "there will be no bailout of states."

On Monday House Majority Leader Eric Cantor, R.-Va., said that states already have sufficient...
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