Ask AI
Bill113th CongressFiled Sep 9, 2014Finance and Financial Sector
H.R. 5421

Financial Institution Bankruptcy Act of 2014

Bill journey · stage 2 of 5

Under committee review

Filed
Comm.
Floor
Both
Law

What it doesSummary passed house amended (Dec 1, 2014)

Financial Institution Bankruptcy Act of 2014 - (Sec. 2) Amends federal bankruptcy law with respect to a "covered financial corporation" incorporated or organized under any federal or state law (other than a stockbroker, a commodity broker, or a domestic or foreign insurance company or financial institution meeting certain criteria) that is: (1) a bank holding company; or (2) a corporation that exists for the primary purpose of owning, controlling, and financing its subsidiaries, has total consolidated assets of $50 billion or greater, and whose annual gross revenues or consolidated assets meet specified tests.

Allows a case under subchapter V (established by this Act) to be converted to chapter 7 (Liquidation) if certain conditions are met, including: (1) a court-ordered appointment of a special trustee, and 2) the court finds that conversion is in the best interest of creditors and the estate.

(Sec. 3) Adds "Subchapter V - Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation," setting forth requirements and prohibitions regarding: (1) commencement of a case concerning a covered financial corporation; (2) a special trustee and bridge company; (3) special transfer of the property of the estate in bankruptcy; (4) treatment of qualified financial contracts and affiliate contracts; (5) licenses, permits, and registrations; (6) exemption from securities laws; and (7) inapplicability of certain avoiding powers.

Authorizes the Board of Governors of the Federal Reserve, the Securities Exchange Commission (SEC), the Office of the Comptroller of the Currency of the Department of the Treasury, and the Federal Deposit Insurance Corporation (FDIC) to raise and be heard on any issue in any case or proceeding under Subchapter V.

(Sec. 4) Amends the federal judicial code to require the Chief Justice of the United States to designate: (1) at least three appellate judges in at least four circuits to serve on an appellate panel available to hear appeals in a bankruptcy case concerning a covered financial corporation, and (2) a panel of at least 10 bankruptcy judges to be available to hear a case under subchapter V.

Prescribes requirements for the assignment of bankruptcy judges to subchapter V cases.

What just happenedDec 2, 2014

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

Who’s behind it

Rep. Bachus, Spencer [R-AL-6](R-AL)Sponsor
2 cosponsors1 D1 R
Read on Congress.gov
2cosponsors2committees17actions1related bills8subjects
  • Referred in SenateDec 2, 2014
  • Engrossed in HouseDec 1, 2014
  • Reported in HouseDec 1, 2014
  • Introduced in HouseSep 9, 2014
  1. Dec 2, 2014IntroReferral

    Received in the Senate and Read twice and referred to the Committee on the Judiciary.

  2. Dec 1, 2014FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Dec 1, 2014FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8174-8177)

  4. Dec 1, 2014Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8174-8177)

  5. Dec 1, 2014FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 5421.

  6. Dec 1, 2014FloorH30000

    Considered under suspension of the rules. (consideration: CR H8174-8181)

  7. Dec 1, 2014FloorH30300

    Mr. Goodlatte moved to suspend the rules and pass the bill, as amended.

  8. Dec 1, 2014CalendarsH12410

    Placed on the Union Calendar, Calendar No. 470.

  9. Dec 1, 2014CommitteeH12200

    Reported by the Committee on Judiciary. H. Rept. 113-630.

  10. Dec 1, 2014Committee5000

    Reported by the Committee on Judiciary. H. Rept. 113-630.

  11. Sep 10, 2014Committee

    Ordered to be Reported by Voice Vote.

  12. Sep 10, 2014Committee

    Committee Consideration and Mark-up Session Held.

  13. Sep 10, 2014Committee

    Subcommittee on Regulatory Reform, Commercial And Antitrust Law Discharged.

  14. Sep 9, 2014Committee

    Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

  15. Sep 9, 2014IntroReferralH11100

    Referred to the House Committee on the Judiciary.

  16. Sep 9, 2014IntroReferralIntro-H

    Introduced in House

  17. Sep 9, 2014IntroReferral1000

    Introduced in House

Passed House amendedDec 1, 201436

Financial Institution Bankruptcy Act of 2014 - (Sec. 2) Amends federal bankruptcy law with respect to a "covered financial corporation" incorporated or organized under any federal or state law (other than a stockbroker, a commodity broker, or a domestic or foreign insurance company or financial institution meeting certain criteria) that is: (1) a bank holding company; or (2) a corporation that exists for the primary purpose of owning, controlling, and financing its subsidiaries, has total consolidated assets of $50 billion or greater, and whose annual gross revenues or consolidated assets meet specified tests.

Allows a case under subchapter V (established by this Act) to be converted to chapter 7 (Liquidation) if certain conditions are met, including: (1) a court-ordered appointment of a special trustee, and 2) the court finds that conversion is in the best interest of creditors and the estate.

(Sec. 3) Adds "Subchapter V - Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation," setting forth requirements and prohibitions regarding: (1) commencement of a case concerning a covered financial corporation; (2) a special trustee and bridge company; (3) special transfer of the property of the estate in bankruptcy; (4) treatment of qualified financial contracts and affiliate contracts; (5) licenses, permits, and registrations; (6) exemption from securities laws; and (7) inapplicability of certain avoiding powers.

Authorizes the Board of Governors of the Federal Reserve, the Securities Exchange Commission (SEC), the Office of the Comptroller of the Currency of the Department of the Treasury, and the Federal Deposit Insurance Corporation (FDIC) to raise and be heard on any issue in any case or proceeding under Subchapter V.

(Sec. 4) Amends the federal judicial code to require the Chief Justice of the United States to designate: (1) at least three appellate judges in at least four circuits to serve on an appellate panel available to hear appeals in a bankruptcy case concerning a covered financial corporation, and (2) a panel of at least 10 bankruptcy judges to be available to hear a case under subchapter V.

Prescribes requirements for the assignment of bankruptcy judges to subchapter V cases.

Introduced in HouseSep 9, 2014

Financial Institution Bankruptcy Act of 2014 - Amends federal bankruptcy law with respect to a "covered financial corporation" incorporated or organized under any federal or state law (other than a stockbroker, a commodity broker, or a domestic or foreign insurance company or financial institution meeting certain criteria) that is: (1) a bank holding company; or (2) a corporation that exists for the primary purpose of owning, controlling, and financing its subsidiaries, has total consolidated assets of $50 billion or greater, and whose annual gross revenues or consolidated assets meet specified tests.

Adds "Subchapter V - Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation," setting forth requirements and prohibitions regarding: (1) commencement of a case concerning a covered financial corporation; (2) a special trustee and bridge company; (3) special transfer of the property of the estate in bankruptcy; (4) treatment of qualified financial contracts and affiliate contracts; (5) licenses, permits, and registrations; (6) exemption from securities laws; and (7) inapplicability of certain avoiding powers.

Allows conversion to chapter 7 (Liquidation) of a case under subchapter V if certain conditions are met.

Amends the Judicial Code to require the Chief Justice of the United States to designate: (1) at least three district judges in at least four circuits to serve on an appellate panel available to hear appeals in a bankruptcy case concerning a covered financial corporation, and (2) a panel of at least 10 bankruptcy judges.

Prescribes requirements for the assignment of bankruptcy judges to subchapter V cases.