Goodlatte, Marino and Trott Praise House Passage of FIBA

Press Release

House Judiciary Committee Chairman Bob Goodlatte (R-Va.), Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Tom Marino (R-Pa.), and House Judiciary Committee member Rep. David Trott (R-Mich.) praised the passage of H.R. 2947, the Financial Institution Bankruptcy Act (FIBA) by the House of Representatives by a voice vote.

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 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.), and Regulatory Reform, Commercial and Antitrust Law Subcommittee Chairman Tom Marino (R-Pa). The House Judiciary Committee held a hearing on FIBA in July of 2015 shortly after the legislation was introduced.

Chairman Goodlatte, Subcommittee Chairman Tom Marino, and Rep. David Trott issued the following joint statement on the approval of the bill:

"The potential failure of a financial institution is a burden that cannot be placed on the American people. Mismanagement on Wall Street should not be paid for by Main Street.

"FIBA is a strongly bipartisan bill that establishes a transparent, predictable process, overseen by an experienced bankruptcy judge, to handle the failure of financial institutions. Furthermore, FIBA will ensure 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."

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