Washington, D.C. - U.S. Senator Pat Toomey issued the following statement about today's Judiciary Committee hearing on reforming bankruptcy laws for big banks:
"A decade ago, Congress bailed out several large financial institutions. This decision undermined market discipline and unfairly put taxpayers on the hook for Wall Street's mistakes. Banks do not deserve preferential treatment. When one fails, it should be subject to bankruptcy law, just like any other failing enterprise. I appreciate Chairman Grassley's decision to explore how bankruptcy laws can be improved in order to better handle large banks that fail and to protect taxpayers from paying for private losses."
Senator Toomey has long advocated reforming U.S. bankruptcy laws pertaining to big banks. In each of the past several congresses, Senators Toomey and John Cornyn (R-Texas.) have introduced the Taxpayer Protection and responsible Resolution Act, which strengthens and modernizes U.S. bankruptcy laws to facilitate the resolution of a failing financial institution - and protects U.S. taxpayers from the bailouts that have come with bank failures in the past.