Financial Institution Bankruptcy Act of 2014

Tue, Jan 27, 2015

Bankruptcy

moneyThis act was passed in the House, but failed the Senate. It was meant to help with insolvent financial institutions. This is a link to the full summary by the Library of Congress. Several different sections of the law were to be changed.

As written at the Library of Congress’s site, it was to amend Section 2 in this way:

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.

Section 3 was to be changed in various ways, including some exemptions, trustee designations, transfers, etc.

Section 4 was going to amend the appellate process in various ways.

The bill was touted as a way to help prevent bailouts of financial institutions. Perhaps it will be revisited in some way in the future.

Attorney Christopher D. Smith, Sr. is designated a Board Certified Consumer Bankruptcy Lawyer by the American Board of Certification.  SmithLaw is located in Lakewood Ranch, Florida.  Attorney Smith concentrates on bankruptcy, civil litigation, probate, estate planning, and elder exploitation cases in the Sarasota and Bradenton area.  Call 941-202-2222 to learn more.  SmithLaw offers free consultations in certain areas, including consumer bankruptcy, probate, and personal injury matters.

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