Washington, D.C. – Today the House Judiciary Committee approved H.R. 5421, the Financial Institution Bankruptcy Act of 2014 by a voice vote.
The Financial Institution Bankruptcy Act is a product of the Judiciary Committee’s long-standing oversight of our nation’s bankruptcy laws as well as the Committee’s recent examination into improving bankruptcy laws for the resolution of financial institutions. The Financial Institution Bankruptcy Act incorporates the recommendations of hearing witnesses, regulators and experts from three Committee hearings on the subject over the past year. The legislation specifically adds a new subchapter V to chapter 11 of the Bankruptcy Code to address the resolution of financial institutions, including large, multi-national financial firms.
House Judiciary Committee Chairman Bob Goodlatte (R-Va.), Ranking Member John Conyers (D-Mich.) and Regulatory Reform Subcommittee Chairman Spencer Bachus (R-Ala.) praised today’s Committee vote:
“We strongly support the Committee’s passage of the bipartisan Financial Institution Bankruptcy Act today. This bill was carefully calibrated to strengthen our nation’s bankruptcy laws and to ensure that the bankruptcy process is well equipped to resolve companies of all operations and sizes. This legislation enhances the Bankruptcy Code and its ability to resolve financial institutions in an efficient and value-maximizing manner for the benefit of the U.S. and global economies, employees, creditors, and customers.”