Washington, D.C. – Today, the U.S. Department of the Treasury issued a review and recommendations on the Orderly Liquidation Authority (OLA) held by the federal government under title II of the 2009 Dodd-Frank financial reform legislation, as requested by the Presidential Memorandum on Core Principles for Financial Regulation.
House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Tom Marino (R-Pa.) have released the following statements:
Chairman Goodlatte: “I am pleased that this report supports strong reforms to protect American taxpayers from costly bank bailouts. In particular, I appreciate that the Treasury has voiced its support for the Financial Institution Bankruptcy Act (FIBA), which has been a high priority of the House Judiciary Committee for several years. This legislation has already passed the House this congress, and I look forward to working with the Administration and the Senate on this effort, so that we can quickly push FIBA over the finish line and get it signed into law.”
Subcommittee Chairman Marino: “It is important that the United States improve the bankruptcy code to ensure that very large financial institutions can have an orderly resolution and that American taxpayers are not on the hook. The Financial Institution Bankruptcy Act (FIBA) is this much needed and meaningful reform. I am pleased to see that the Treasury Department has endorsed this legislation. I look forward to working with the Administration, the Senate, and my House colleagues to get FIBA signed into law.”
In 2017, the House Judiciary Committee approved the Financial Institution Bankruptcy Act, which then passed the full House of Representatives by a bipartisan vote. This legislation adds a new subchapter to chapter 11 of the Bankruptcy Code to serve as the primary means to address the resolution of failing financial institutions, and it represents years of work by the Committee to identify the best ways to resolve failing financial institutions and protect American taxpayers.