Sec. 3. Judicial expertise in complex financial matters and bankruptcy court processes for financial companies
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/bill/114/s/3505/is/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Director of the Administrative Office of the United States Courts, the Director of the Executive Office for United States Trustees, and the Director of the Federal Judicial Center shall jointly, in consultation with the Council and the Office— develop, and periodically update, recommendations with respect to— the type of expertise that would enable a judge to oversee more effectively the resolution of a financial company under the Bankruptcy Code in a manner that prevents adverse impacts on financial stability in the United States without creating moral hazard; and a process for ensuring that a sufficient number of bankruptcy and district court judges— develop and maintain the level of expertise described in subparagraph (A); and are available in each circuit to preside over cases that involve financial companies; identify, and periodically update the identification of— provisions in the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure that— increase the severity of the failure of a financial company; complicate or impede the resolution of a financial company; unfairly increase the risk of loss by ordinary creditors of a financial company; shift the costs of the resolution of a financial company, or the risks of loss in such a resolution, away from persons that are in a position to prevent or reduce such complications, impediments, risks, or costs; decrease the likelihood that a financial company will be able to obtain enough private financing to emerge successfully from bankruptcy without the need for a taxpayer bailout or other government financial assistance; or otherwise pose a threat to financial stability in the United States; amendments to the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and other statutes and procedural rules that could help prevent or mitigate the complications, impediments, risks, and costs described in subparagraph (A); and ways in which financial companies and their customers, investors, and counterparties could adjust business practices to prevent or reduce the complications, impediments, risks, and costs described in subparagraph (A); and not later than 1 year after the date of enactment of this Act, and every other year thereafter, submit to the committees of jurisdiction a report that sets forth recommendations and issues that may help— facilitate further the resolution of a financial company under the Bankruptcy Code; and prevent or mitigate risks to financial stability in the United States.
Not later than 18 months after the initial report required under subsection (a)(3) is submitted, the Supreme Court of the United States, in consultation with the Council, the Office, the Director of the Administrative Office of the United States Courts, and the Director of the Executive Office for United States Trustees, shall issue a rule under section 2075 of title 28, United States Code, that provides for the orderly appointment, by the chief judge of the court of appeals for the circuit embracing the district in which a financial company has filed a petition, of a bankruptcy judge or district court judge having expertise in the resolution of financial companies under the Bankruptcy Code.