Making Failure Feasible

Edited by Kenneth E. Scott, Thomas H. Jackson and John Taylor

in Books from Hoover Institution, Stanford University

Abstract: In 2012, building off work first published in 2010, the Resolution Project proposed that a new Chapter 14 be added to the Bankruptcy Code, exclusively designed to deal with the reorganization or liquidation of the nation’s large financial institutions. In Making Failure Feasible, the contributors expand on their proposal to improve the prospect that our largest financial institutions—particularly with prebankruptcy planning—could be successfully reorganized or liquidated pursuant to the rule of law and, in doing so, both make resolution planning pursuant to Title I of Dodd-Frank more fruitful and make reliance on administrative proceedings pursuant to Title II of Dodd-Frank largely unnecessary. This book highlights the problems of dealing with large financial institutions in distress, without incurring either spillover distress to other institutions or relying on government bailout, and Chapter 14’s responses to those twin issues, as well as recommending other measures that would facilitate successful resolutions. The contributors first outline the basic features of Chapter 14 as originally proposed in 2012 vis-à-vis the reorganization or liquidation of an operating company and point to their continuation as well as additional features to ensure the quick resolution of large financial institutions that would not depend on government discretion and would mesh with emerging ideas about cross-border resolution. The remaining chapters provide the context for reform, outline the fundamental principles of reform, show how reform would work in practice, and show how Chapter 14, as envisioned in this book, would be a substantial advance on administrative-focused resolution procedures.

Date: 2015
ISBN: 978-0-8179-1884-2
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Citations: View citations in EconPapers (15)

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http://www.amazon.com/Making-Failure-Feasible-Bankruptcy-Reform/dp/0817918841

Chapters in this book:

A Resolvable Bank

Thomas F. Huertas

Building on Bankruptcy: A Revised Chapter 14 Proposal for the Recapitalization, Reorganization, or Liquidation of Large Financial Institutions

Thomas H. Jackson

Financing Systemically Important Financial Institutions in Bankruptcy

David A. Skeel

Preface

John Taylor

Resolution of Failing Central Counterparties

Darrell Duffie

Revised Chapter 13 2.0 and Living Will Requirements under the Dodd-Frank Act

William F. Kroener

The Consequences of Chapter 14 for International Recognition of US Bank Resolution Action

Simon Gleeson

The Context for Bankruptcy Resolutions

Kenneth E. Scott

The Cross-Border Challenge in Resolving Global Systemically Important Banks

Jacopo Carmassi and Richard Herring

The Next Lehman Bankruptcy

Emily Kapur

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Persistent link: https://EconPapers.repec.org/RePEc:hoo:books1:9

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