–Ranking Republican on Senate Finance Panel Seeks GAO Probe of Tsy
–Democratic Senator Boxer Offers Bill To Change Debt Hike Process

By John Shaw

WASHINGTON (MNI) – With much of the financial world and many
members of Congress convinced that this year’s debt ceiling battle was a
legislative debacle that did grave harm to the U.S., there are fledgling
efforts underway to see if there is a better way to handle the ritual of
increasing the statutory debt ceiling.

Democratic senator Barbara Boxer introduced legislation this week
that would fundamentally change how the debt ceiling is raised.

Her bill, dubbed the USA AAA Credit Restoration Act, would
establish a simple and less political process for increasing the debt
ceiling.

Under her plan, on the day the President submits his annual budget
in February, the Treasury Secretary would be required to submit to
Congress and print in the Federal Register the amount by which the debt
limit must be increased for the following year.

Under her bill, the administration’s request would become law
unless Congress voted to disapprove of the debt ceiling increase under
an expedited procedure.

“The unnecessary brinksmanship surrounding the debt ceiling debate
this summer weakened our nation’s standing and led to Standard and
Poor’s downgrade of America’s credit rating,” Boxer said in a statement.

“This bill will bring sanity to future debt limit debates by laying
out a clear, orderly process for raising the debt ceiling while allowing
all voices to be heard,” she added.

Sen. Orrin Hatch, the ranking Republican on the Senate Finance
Committee, has written the Government Accountability Office and the
Council of Inspectors General on Financial Oversight this week to study
this summer’s debt ceiling crisis.

Hatch requested information in July about Treasury’s cash
projections and contingency plans and apparently believes the responses
he received were inadequate.

He wants the two probes to assess Treasury’s responses to his
inquiry, determine if Treasury provided information to financial firms
that was not publicly available, and to recommend ways to improve
transparency at Treasury in this area.

** Market News International Washington Bureau: (202) 371-2121 **

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