Financial Institution Bankruptcy Act of 2014

Bill: 113-hr-5421
Sponsor: Rep. Bachus, Spencer [R-AL-6]
Introduced: 2014-09-09 in the House
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation
Bankruptcy
Federal Reserve System
Federal appellate courts
Financial services and investments
Judges
Judicial review and appeals
Securities

Summary:
action_date: 2014-09-09
text: 
 Financial Institution Bankruptcy Act of 2014 - Amends federal bankruptcy law with respect to a &quot;covered financial corporation&quot; 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 &quot;Subchapter V - Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation,&quot; 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.

action_date: 2014-12-01
text: 
 Financial Institution Bankruptcy Act of 2014 - (Sec. 2) Amends federal bankruptcy law with respect to a &quot;covered financial corporation&quot; 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 &quot;Subchapter V - Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation,&quot; 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.


Legislative actions:
action_date: 2014-12-02
text: Received in the Senate and Read twice and referred to the Committee on the Judiciary.
action_date: 2014-12-01
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2014-12-01
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8174-8177)
action_date: 2014-12-01
text: 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)
action_date: 2014-12-01
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 5421.
action_date: 2014-12-01
text: Considered under suspension of the rules. (consideration: CR H8174-8181)
action_date: 2014-12-01
text: Mr. Goodlatte moved to suspend the rules and pass the bill, as amended.
action_date: 2014-12-01
text: Placed on the Union Calendar, Calendar No. 470.
action_date: 2014-12-01
text: Reported by the Committee on Judiciary. H. Rept. 113-630.
action_date: 2014-12-01
text: Reported by the Committee on Judiciary. H. Rept. 113-630.
action_date: 2014-09-10
text: Ordered to be Reported by Voice Vote.
action_date: 2014-09-10
text: Committee Consideration and Mark-up Session Held.
action_date: 2014-09-10
text: Subcommittee on Regulatory Reform, Commercial And Antitrust Law Discharged.
action_date: 2014-09-09
text: Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.
action_date: 2014-09-09
text: Referred to the House Committee on the Judiciary.
action_date: 2014-09-09
text: Introduced in House
action_date: 2014-09-09
text: Introduced in House