Bailout Could Accelerate Bankruptcies: Experts

Law360, New York (September 28, 2008, 12:00 AM EDT) -- It remains unclear whether Congress will pass a proposed $700 billion rescue package for America's ailing financial industry, but experts agree that the plan won't slow the growing wave of corporate bankruptcy filings — and could even make it worse.

Under the plan, proposed earlier this month by Secretary of the Treasury Henry Paulson, the U.S. government would buy distressed assets from America's foundering financial institutions. In a version of the plan that came before the House of Representatives on Monday, the government would have received...
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