House Judiciary Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Spencer Bachus (R-Ala.), Full Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Judiciary Committee ranking member John Conyers (D-Mich.) Tuesday introduced H.R. 5421, the bipartisan Financial Institution Bankruptcy Act of 2014.
The proposed legislation, which is scheduled for markup today, is the product of several hearings over the past year to enhance bankruptcy laws and better address the challenges of financial institutions in the process. It will add a new subchapter to Chapter 11 of the Bankruptcy Code to address the resoultion of financial institutions, including large, multi-national financial firms.
“The House Judiciary Committee has a long history of vigilant oversight of our nation’s bankruptcy laws,” a joint statement from the three representatives read. “The Financial Institution Bankruptcy Act is a reflection of the committee’s continued commitment to this oversight and to ensuring that the bankruptcy process is best equipped to resolve companies of varying operations and sizes.”
The bipartisan legislation addresses the resolution of financial institutions in bankruptcies in a manner that best serves the U.S. and global economies, employees, creditors and customers. It promises transparency, predictability and judicial oversight of the bankruptcy process for financial institutions.