Washington, D.C.— 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 upon House passage of the Financial Institution Bankruptcy Act (FIBA) of 2017 (H.R. 1667) by a voice vote.
“The 2008 financial crisis impacted every hardworking American differently, and we are still learning the lessons from that period in our economy’s history. The crisis made it clear that American taxpayers should not be forced to bear the costs of a failing Wall Street financial institution.
“Those who have a stake in a company should have to bear the costs associated with an institution’s failure.
“We applaud the bipartisan House passage of the Financial Institution Bankruptcy Act, which will change our Bankruptcy Code to better equip it to handle the potential failure of a financial institution in the future, while shielding hardworking Americans and larger financial system.”
Background: 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 four Committee hearings on the subject over the past three 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.