The House today passed a bill that would overhaul the bankruptcy process for failing financial institutions. The measure passed in a voice vote, after the House Judiciary Committee moved it in a 25-0 vote.
The bill is designed to set up a specialized form of bankruptcy for large financial institutions that would be less disruptive to the economy than the process available under current law. House Financial Services Committee Jeb Hensarling said the bill "is the first step to ending 'too big to fail' once and for all."
Hensarling said the next step is the Financial Services Committee passing a bill later this week that would repeal part of the 2010 Dodd-Frank law that gives the government the power to unwind a failing financial firm outside of bankruptcy in a process known as orderly liquidation authority.