On Nov. 18 the House Financial Services Committee narrowly adopted an amendment to pending legislation, the Financial Stability Improvement Act of 2009 (HR 3996), that will greatly increase financial instability if it becomes law.

Under the measure, known as the Miller-Moore amendment, secured creditors of a large, insolvent financial holding company being resolved by the FDIC could suffer as much as a 20% loss under the special receivership provisions created by this legislation.

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