Goodlatte and Marino Applaud Committee Approval of Financial Institution Bankruptcy Legislation

Statement

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 Judiciary Committee approval of the Financial Institution Bankruptcy Act (FIBA) of 2017 (H.R. 1667) by a voice vote.

"One of the most important lessons we have learned from the 2008 financial crisis is that American taxpayers should not have to bear the costs of a failing financial institution on Wall Street.

"The costs associated with a failing a financial institution should be borne by those who have a stake in the company, and hardworking Americans should not have to worry that their tax dollars will be used to bailout another Wall Street bank.

"Approval of the Financial Institution Bankruptcy Act ensures that our Bankruptcy Code is well-equipped to handle the potential failure of a financial institution while not harming our financial system as a whole. The legislation provides for the resolution of financial institutions in an efficient and value-maximizing manner for the benefit of employees, creditors, customers, and the economy."

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.

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