UNANIMOUS: House Passes Trott Legislation to Protect American Taxpayers
WASHINGTON, DC: The U.S. House of Representatives today unanimously passed Rep. Dave Trott’s (MI-11) legislation to reform the nation’s bankruptcy code and reduce the risk of American taxpayers having to pay for more government bailouts of failing financial institutions.
"This legislation is an important step toward reforming the nation’s bankruptcy laws and protecting American taxpayers from having to shoulder more government bailouts of failed banks. By adding these financial reforms, we can create a more efficient and transparent process that benefits hard-working citizens in Southeast Michigan and our economy,” said Rep. Trott following the bill’s passage on the House floor.
“The potential failure of a financial institution is a burden that cannot be placed on the American people. Mismanagement on Wall Street should not be paid for by Main Street. This legislation will not create a single new regulation and is an important step towards safeguarding against a future systemic economic collapse,” said Judiciary Chairman Rep. Bob Goodlatte (VA-06).
The legislation, introduced by Rep. Trott, will reduce the risk of bailouts from the American people by reforming the way financial institutions are addressed in the bankruptcy process.
The legislation improves efficiency in bankruptcy proceedings by allowing bankruptcy judges the ability to transfer the assets of a failing bank to a new, more stable owner in less than 48 hours. These reforms are achieved without creating any new regulations from the federal government.
“The American people want to see solutions that make a more efficient government and protect their hard-earned tax dollars from being wasted in Washington—and I am confident this bipartisan legislation will do just that. I’m hopeful that the Senate will take up this legislation quickly and advance it to the President’s desk,” added Rep. Trott.
The House passed Rep. Trott’s legislation by a unanimous vote on April 12, 2016. The bill now moves to the U.S. Senate for consideration.