Marino, Goodlatte, Conyers and Trott Praise House Judiciary Committee Approval of FIBA
Washington, D.C.— The House Judiciary Committee today approved H.R. 2947, the Financial Institution Bankruptcy Act (FIBA) by a vote of 25-0.
FIBA 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 the bankruptcy laws for the resolution of financial institutions. The legislation incorporates the recommendations of hearing witnesses, regulators and experts from four Committee hearings on the subject over the past two years. The legislation 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. The amendments enhance the Bankruptcy Code to address the unique challenges presented by the insolvency of a financial institution and improve the process by which such an institution may be resolved through bankruptcy.
Efforts to pass FIBA are being led by a bipartisan group of House Judiciary Committee members, including the bill’s chief sponsor David Trott (R-Mich.), Chairman Bob Goodlatte (R-Va.), Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Tom Marino (R-Pa.), and Judiciary Committee Ranking Member John Conyers (D-Mich.) The House Judiciary Committee held a hearing on the re-introduced version of FIBA in July of 2015 shortly after the legislation was introduced. A similar version of FIBA received strong bipartisan support during the 113th Congress and passed the Committee and House by voice vote.
House Judiciary Committee Chairman Bob Goodlatte (R-Va.), Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Tom Marino (R-Pa.), Judiciary Committee Ranking Member John Conyers (D-Mich.), and Judiciary Committee member Rep. David Trott (R-Mich.) issued the following joint statement on the approval of the bill:
“We are all pleased to see a bipartisan coalition within the House Judiciary Committee come together to approve this bill to strengthen our nation’s bankruptcy laws so that the process will be well-equipped to administer bankruptcy cases related to financial institutions.”
“By improving the Bankruptcy Code, we are further establishing a transparent, predictable process overseen by an experienced bankruptcy judge. In turn, this will ensure that shareholders and creditors of a financial institution, not taxpayers, bear the risk and the losses associated with the failure of a financial institution. This legislation will not create a single new regulation, and is an important step towards safeguarding against a future systemic economic collapse.”