Political Quotes

“Today, we take an important step toward preventing the taxpayer- funded bailouts that characterized the 2008 financial crisis. The legislation before us, the Financial Institution Bankruptcy Act, enhances the Bankruptcy Code to facilitate the resolution of a failing financial institution through the bankruptcy process. In doing so, this will help to ensure that private creditors, not taxpayers, bear the losses related to a failing financial institution. The Financial Institution Bankruptcy Act is the culmination of years of review and research by the Judiciary Committee; other committees; and experts from the financial, regulatory, legal, and academic communities who helped to examine how best to prevent another financial crisis from occurring and avert the use of taxpayer moneys to bail out failing firms. The Judiciary Committee has participated in and promoted this review with the aim of examining whether the bankruptcy laws could be improved to enhance the prospects of resolving a financial institution through the bankruptcy process. During the course of two oversight hearings this Congress, the Subcommittee on Regulatory Reform, Commercial, and Antitrust Law received testimony that the Bankruptcy Code could be improved to better facilitate a resolution of a financial firm and that an amendment to chapter 11 to provide for a specialized subchapter would be the most efficient approach to that goal.…”