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2.12 Required Liquidation of Companies in Receivership; Prohibition on Taxpayer Funding

<< Title II Overview

2.12 Required Liquidation of Companies in Receivership; Prohibition on Taxpayer Funding

 

 


2.12.     Required Liquidation of Companies in Receivership; Prohibition on Taxpayer Funding.  The Act contains several provisions intended to address public concerns about taxpayer "bailouts."  The Act provides that all financial companies placed in receivership shall be liquidated.  It also states that no taxpayer funds shall be used to prevent the liquidation of any financial company under the Act.

The Act requires that all funds expended in the liquidation of a financial company shall be recovered from the disposition of assets of the company, or shall be the responsibility of the financial sector through assessment.  Finally, the Act provides that taxpayers shall bear no losses from the exercise of any authority under Title II.  [§214]