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Bill114th CongressFiled Jul 7, 2015Finance and Financial Sector
H.R. 2947

Financial Institution Bankruptcy Act of 2016

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary passed house amended (Apr 12, 2016)

(This measure has not been amended since it was reported to the House on March 23, 2016. The summary of that version is repeated here.)

Financial Institution Bankruptcy Act of 2016

(Sec. 2) This bill 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.

(Sec. 3) The bill 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.

A debtor holding company may transfer the assets (including executory contracts and unexpired leases) of a covered financial corporation, including the equity in all of its operating subsidiaries, to a newly-formed bridge company over a single weekend, during which a 48-hour stay of debt-collection proceedings (except payment and delivery obligations) shall apply.

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

The Bankruptcy Court may not order an assets transfer unless it determines by a preponderance of the evidence that a transfer is necessary to prevent serious adverse effects on financial stability in the United States.

(Sec. 4) The judicial code is amended to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear a Subchapter V case in bankruptcy. Bankruptcy judges may request to be considered for such designation.

What just happenedApr 13, 2016

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

Who’s behind it

Rep. Trott, David A. [R-MI-11](R-MI)Sponsor
4 cosponsors1 D3 R
Read on Congress.gov
4cosponsors2committees18actions4related bills8subjects
  1. Apr 13, 2016IntroReferral

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

    Judiciary Committee
  2. Apr 12, 2016FloorH38310

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

  3. Apr 12, 2016FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1605-1608)

  4. Apr 12, 2016Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H1605-1608)

  5. Apr 12, 2016FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 2947.

  6. Apr 12, 2016FloorH30000

    Considered under suspension of the rules. (consideration: CR H1605-1610)

  7. Apr 12, 2016FloorH30300

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

  8. Mar 23, 2016CalendarsH12410

    Placed on the Union Calendar, Calendar No. 363.

  9. Mar 23, 2016CommitteeH12200

    Reported (Amended) by the Committee on Judiciary. H. Rept. 114-477.

    Judiciary Committee
  10. Mar 23, 2016Committee5000

    Reported (Amended) by the Committee on Judiciary. H. Rept. 114-477.

    Judiciary Committee
  11. Feb 11, 2016Committee

    Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 0.

    Judiciary Committee
  12. Feb 11, 2016Committee

    Committee Consideration and Mark-up Session Held.

    Judiciary Committee
  13. Feb 5, 2016Committee

    Subcommittee on Regulatory Reform, Commercial And Antitrust Law Discharged.

    Judiciary Committee
  14. Jul 9, 2015Committee

    Subcommittee Hearings Held.

    Administrative State, Regulatory Reform, and Antitrust Subcommittee
  15. Jul 8, 2015Committee

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

    Administrative State, Regulatory Reform, and Antitrust Subcommittee
  16. Jul 7, 2015IntroReferralH11100

    Referred to the House Committee on the Judiciary.

    Judiciary Committee
  17. Jul 7, 2015IntroReferralIntro-H

    Introduced in House

  18. Jul 7, 2015IntroReferral1000

    Introduced in House

Passed House amendedApr 12, 201636

(This measure has not been amended since it was reported to the House on March 23, 2016. The summary of that version is repeated here.)

Financial Institution Bankruptcy Act of 2016

(Sec. 2) This bill 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.

(Sec. 3) The bill 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.

A debtor holding company may transfer the assets (including executory contracts and unexpired leases) of a covered financial corporation, including the equity in all of its operating subsidiaries, to a newly-formed bridge company over a single weekend, during which a 48-hour stay of debt-collection proceedings (except payment and delivery obligations) shall apply.

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

The Bankruptcy Court may not order an assets transfer unless it determines by a preponderance of the evidence that a transfer is necessary to prevent serious adverse effects on financial stability in the United States.

(Sec. 4) The judicial code is amended to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear a Subchapter V case in bankruptcy. Bankruptcy judges may request to be considered for such designation.

Reported to House with amendment(s)Mar 23, 201617

Financial Institution Bankruptcy Act of 2016

(Sec. 2) This bill 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.

(Sec. 3) The bill 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.

A debtor holding company may transfer the assets (including executory contracts and unexpired leases) of a covered financial corporation, including the equity in all of its operating subsidiaries, to a newly-formed bridge company over a single weekend, during which a 48-hour stay of debt-collection proceedings (except payment and delivery obligations) shall apply.

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

The Bankruptcy Court may not order an assets transfer unless it determines by a preponderance of the evidence that a transfer is necessary to prevent serious adverse effects on financial stability in the United States.

(Sec. 4) The judicial code is amended to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear a Subchapter V case in bankruptcy. Bankruptcy judges may request to be considered for such designation.

Introduced in HouseJul 7, 2015

Financial Institution Bankruptcy Act of 2015

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.

Financial Institution Bankruptcy Act of 2016 — Informed