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“Orderly Liquidation” Awaits Financial Firms

1 min read

“Orderly Liquidation” Awaits Financial Firms

Some of the opponents of the recently enacted health care legislation may have been premature with their warnings about “death panels.” A death panel of sorts can be found in the Restoring American Financial Stability Act of 2010, the financial regulation bill that has Congress divided once again along partisan lines. The bill would establish in the U.S Bankruptcy Court in Delaware an ominous-sounding Orderly Liquidation Authority Panel to preside over the (presumably) orderly process of putting out of business a large bank or non-banking financial firm whose “financial distress or failure” could create “risks to the financial stability of the United States…”
Senator Richard Durbin (D-Ill.) cited the language of the bill to refute Republican claims that the bill, with its provision for a $50 billion “Orderly Liquidation Fund”