Political Quotes

“Mr. Speaker, I yield myself such time as I may consume. H.R. 2947, the Financial Institution Bankruptcy Act of 2016, amends the Bankruptcy Code to establish a process for the expedited judicial resolution of large financial institutions in order to soften the disruptive effects of their collapse. As we all know, the Great Recession was triggered by the widespread issuance and limited regulation of high-risk and, possibly, fraudulent mortgage-backed securities. Fueled by adjustable rate and predatory subprime mortgages, these securities were issued without regard to careful underwriting standards, caused a housing bubble that trapped countless homeowners in unaffordable mortgages, and led to a massive wave of foreclosures that resulted in the worst financial crisis since the Great Depression. In the wake of this crisis, the President signed the Dodd-Frank Act into law so as to provide comprehensive measures to reduce systemic risk through heightened financial stability requirements for large financial institutions. Among many other requirements, title I of Dodd-Frank requires that certain large financial institutions have living wills to ensure a rapid and orderly resolution in the event of material distress or failure. Title II of the law provides for an administrative process to wind down these institutions so as to avoid adverse effects on the entire financial system; but there is no such process under the current bankruptcy law.…”