WASHINGTON – Today, the House of Representatives passed H.R. 5421, the Financial Institution Bankruptcy Act of 2014 (FIBA), by a voice vote. FIBA is the product of the Judiciary Committee’s multi-year examination of the ability of the bankruptcy laws to resolve a failing financial institution.
FIBA incorporates the recommendations of hearing witnesses, regulators and other experts in addition to the record of three Committee hearings on the Bankruptcy Code. Specifically, the bill adds a new subchapter to Chapter 11 of the Bankruptcy Code that improves the bankruptcy process for financial firms of varying sizes, including large, multinational firms whose resolution could have far-reaching implications for domestic and global economies.
House Judiciary Committee Chairman Bob Goodlatte (R-Va.), Ranking Member John Conyers (D-Mich.) and Regulatory Reform Subcommittee Chairman Spencer Bachus (R-Ala.) praised the House passage of FIBA:
John Conyers, Jr.
“As leaders of the Judiciary Committee with oversight of our nation’s bankruptcy laws, we have worked across the aisle to answer the question of how to improve the existing bankruptcy process for the resolution of failing financial institutions. Our answer is FIBA.
FIBA removes potential obstacles to an efficient bankruptcy of a financial institution. This legislation enhances the Bankruptcy Code and its ability to resolve financial firms for the benefit of stability in the U.S. and global economies and does so with minimal financial burdens or cost. We applaud the House’s passage of FIBA as an important first step towards enactment into law.”