HEARING ADVISORY: Regulatory Reform Subcommittee to Hold Hearing on Financial Institution Bankruptcy Legislation

Washington, D.C.— On Thursday, March 23, 2017, at 9:00 a.m., the Subcommittee on Regulatory Reform, Commercial and Antitrust Law will hold a hearing on the Financial Institution Bankruptcy Act of 2017 (FIBA). FIBA is a product of the House Judiciary Committee’s long-standing oversight of our nation’s bankruptcy laws, as well as the Committee’s examination into improving the bankruptcy laws for the resolution of financial institutions. The legislation incorporates the recommendations of hearing witnesses, regulators and experts from three Committee hearings on the subject over the past two years. The legislation specifically adds a new subchapter V to chapter 11 of the Bankruptcy Code to address the resolution of failing financial institutions, including large, multi-national financial firms. The Subcommittee on Regulatory Reform, Commercial and Antitrust Law will hear testimony from an expert panel of witnesses to explore the merits of FIBA, and whether any improvements can be made to the legislation. The witnesses for Thursday’s hearing will be:

• The Honorable Mary F. Walrath, Esq., U.S. Bankruptcy Judge for the District of Delaware;
• John B. Taylor, Mary and Robert Raymond Professor of Economics at Stanford University and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution;
• Stephen E. Hessler, Esq., Partner, Kirkland & Ellis, LLP; and
• Bruce Grohsgal, Esq., Helen S. Balick Visiting Professor in Business Bankruptcy Law, Widener University, Delaware Law School

House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Tom Marino (R-Pa.) issued the following joint statement on the upcoming hearing: “Hardworking Americans on Main Street need to know that they will not have to bear the costs of the potential failure of a major financial institution on Wall Street. The mistakes of the 2008 financial crisis have taught us that the responsibility for a financial institution’s fiscal health should remain in the hands of those who have a stake in the company, and not with American taxpayers. “The Financial Institution Bankruptcy Act of 2017will strengthen our nation’s bankruptcy laws and ensure that the bankruptcy process is well equipped to handle a failing financial institution. This legislation is an important step toward reforming the nation’s bankruptcy laws and reducing the potential for risk in the financial marketplace as the result of the collapse of a large financial institution.” The hearing will take place in 2141 Rayburn House Office Building and will be webcast live at /. Camera crews wishing to cover must be congressionally credentialed and RSVP with the House Radio-TV Gallery at (202) 225-5214.

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