HR 5421 · 113th Congress 2013–2015, ended

Financial Institution Bankruptcy Act of 2014

Introduced Sep 9, 2014 Originated House Sponsor Spencer Bachus R-AL

Latest action · Dec 2, 2014 Received in the Senate and Read twice and referred to the Committee on the Judiciary.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

IntroducedSep 9, 2014
Passed HouseDec 1, 2014
Passed SenateNot reached
To the PresidentNot reached
Became lawNot reached

Summary

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.

Cosponsors 2

Members who signed on, in the order they did. All signed on Sep 9, 2014.

Seat	Cosponsor		Signed on
R-VA	Bob Goodlatte	Original	Sep 9, 2014
D-MI	John Conyers, Jr.	Original	Sep 9, 2014

Committees 2

Where it was sent and what each committee and subcommittee did with it, in order.

Chamber	Committee	What it did
House	Judiciary Committee	Referred Sep 9, 2014Markup Sep 10, 2014Reported Dec 1, 2014
	Administrative State, Regulatory Reform, and Antitrust Subcommittee	Referred Sep 9, 2014Discharged Sep 10, 2014
Senate	Judiciary Committee	Referred Dec 2, 2014

Actions 14

Everything that happened, newest first.

Dec 2, 2014Received in the Senate and Read twice and referred to the Committee on the Judiciary.
Dec 1, 2014Reported by the Committee on Judiciary. H. Rept. 113-630.
Dec 1, 2014Placed on the Union Calendar, Calendar No. 470.
Dec 1, 2014Mr. Goodlatte moved to suspend the rules and pass the bill, as amended.
Dec 1, 2014Considered under suspension of the rules. (consideration: CR H8174-8181)
Dec 1, 2014DEBATE - The House proceeded with forty minutes of debate on H.R. 5421.
Dec 1, 2014Passed/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)
Dec 1, 2014Motion to reconsider laid on the table Agreed to without objection.
Sep 10, 2014Subcommittee on Regulatory Reform, Commercial And Antitrust Law Discharged.
Sep 10, 2014Committee Consideration and Mark-up Session Held.
Sep 10, 2014Ordered to be Reported by Voice Vote.
Sep 9, 2014Introduced in House
Sep 9, 2014Referred to the House Committee on the Judiciary.
Sep 9, 2014Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

In the Congressional Record 1

Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.

Where	In the Record	Members	Date
House	Debate and remarks H8174–H8181Text printed H8174–H8177Analyses H8179–H8181	Bob Goodlatte R-VA, John Conyers, Jr. D-MI, Spencer Bachus R-AL	Dec 1, 2014

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Committee report

H. Rept. 113-630

Congressional Budget Office cost estimate

Nov 10, 2014H.R. 5421, Financial Institution Bankruptcy Act of 2014As ordered reported by the House Committee on the Judiciary on September 10, 2014

Constitutional authority

Congress has the power to enact this legislation pursuant to the following: Article I, Section 8, clause 3 of the United States Constitution, in that the legislation exercises legislative power granted to Congress by that clause ``to regulate Commerce with foreign Nations, and among the several States, and with Indian tribes;'' Article I, Section 8, clause 4 of the United States Constitution, in that the legislation exercises legislative power granted to Congress by that clause ``to establish ... uniform Laws on the subject of Bankruptcies throughout the United States;'' Article I, Section 8, clause 9 of the United States Constitution, in that the legislation exercises legislative power granted to Congress by that clause ``to constitute Tribunals inferior to the Supreme Court;'' Article I, Section 8, clause 18 of the United States Constitution, in that the legislation exercises legislative power granted to Congress by that clause ``to make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof;'' and, Article III of the United States Constitution, in that the legislation defines or affects powers of the Judiciary that are subject to legislation by Congress.

The sponsor’s statement, as printed in the page H7388.

Related bills 1

Companion bills and other measures the record links to this one.

Bill	Title	Relationship	Latest action
S 1861	Taxpayer Protection and Responsible Resolution Act	Related bill	Dec 19, 2013

Titles 3

Every title it has carried, official and short, at each stage.

Official Title as Introduced: To amend title 11 of the United States Code in order to facilitate the resolution of an insolvent financial institution in bankruptcy.
Short Titles as Introduced: Financial Institution Bankruptcy Act of 2014
Short Titles as Passed House: Financial Institution Bankruptcy Act of 2014

Subjects

Assigned by the Library of Congress. Policy area: Finance and Financial Sector.

Text 4

Each version as it was printed, newest first.

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.