Political Quotes

“Ladies and gentlemen of the House, I rise in strong support of H.R. 5421, as amended, the Financial Institution Bankruptcy Act of 2014. It is intended to ensure that the resolution of large, complex financial institutions on the verge of insolvency can be better facilitated under the Bankruptcy Code. I support this legislation for several reasons. First, it addresses a real need, which is recognized by the regulatory agencies, bankruptcy experts, and the private sector, that the bankruptcy law must be amended, so that it can expeditiously restore trust in the financial marketplace after the collapse of a major financial institution. Such was the case with the failure of Lehman Brothers in 2008, for example, which caused a worldwide freeze on the availability of credit, wreaking havoc on Wall Street, as well as on Main Street. The near collapse of our Nation's economy that resulted from Lehman's failure revealed that current bankruptcy law is, unfortunately, ill-equipped to deal with complex financial institutions that are in economic distress. This legislation, accordingly, creates a court-supervised, orderly liquidation mechanism that will be guided by the regulators. In sum, this process will allow a failing financial institution to transfer its assets to a newly-formed bridge company over a single weekend, which will promote confidence in the financial marketplace.…”