The House Judiciary Committee yesterday approved H.R. 5421, the “Financial Institution Bankruptcy Act of 2014,” by a voice vote, according to a committee press release. The legislation aims to deal with resolving systemically important financial institutions (SIFIs). The bill would permit an expedited transfer of all the debtor's assets to a new bridge company on a short-term basis. The Financial Institution Bankruptcy Act incorporates the recommendations of hearing witnesses, regulators and experts from three Committee hearings on the subject over the past year. The legislation specifically 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. Read the press release.
http://judiciary.house.gov/index.cfm/press-releases?id=71A94DCE-AAA3-4B…
Click here to read the text of H.R. 5421. http://news.abi.org/congress/113/hr-5421-the-the-financial-institution-…