U.S. corporate and bank insolvency regimes
Subtitle: an economic comparison and evaluation
By: Robert R. Bliss and George G. Kaufman
Contributors: Kaufman, George G.; Federal Reserve Bank of Chicago. Research Department
Series: Working paper series -- WP-2006-1; Working paper series (Federal Reserve Bank of Chicago. Research Department : Online) -- WP-2006-1.
Publisher: Federal Reserve Bank of Chicago
Published: 2006
Place of publication: Chicago, Ill.]
Language: eng
Format: [electronic resource] :
Subjects: Bankruptcy; Bank failures
Other titles: US corporate and bank insolvency regimes
Description: "In the U.S., the insolvency resolution of most corporations is governed by the federal  bankruptcy code and is administered by special bankruptcy courts. Most large corporate  bankruptcies are resolved under Chapter 11 reorganization proceedings. However,  commercial bank insolvencies are governed by the Federal Deposit Insurance Act and are  administered by the FDIC. These two resolution processes--corporate bankruptcy and  bank receiverships--differ in a number of significant ways, including the type of  proceeding (judicial versus administrative); the rights of managers, stockholders and  creditors in the proceedings; the explicit and implicit goals of the resolution; the  prioritization of creditors' claims; the costs of administration; and the timeliness of  creditor payments. These differences derive from perceptions that "banks are special."  This paper elucidates these differences, explores the effectiveness of the procedural  differences in achieving the stated goals, and considers the potential economic  consequences of the different structures."--Federal Reserve Bank of Chicago web site.
Notes: Title from PDF file as viewed on 10/12/2006.

Includes bibliographical references.

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Mode of access: World Wide Web.