Sens. Want To Create Ch. 14 Bankruptcy For Failed Banks

Law360, New York (December 19, 2013, 2:30 PM ET) -- Sens. John Cornyn, R-Texas, and Pat Toomey, R-Pa., introduced legislation Thursday that would eliminate a section of the Dodd-Frank Act and establish a “Chapter 14” bankruptcy in order to prevent “too big to fail” banks from being bailed out with taxpayer funds.

The bill, called the Taxpayer Protection and Responsible Resolution Act, would create a new Chapter 14 bankruptcy for certain financial corporations and repeal Title II of the Dodd-Frank Act, also known as the orderly liquidation authority provision. The provision allows for the Federal Deposit...
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