Center for Law and Economic Studies
The Dodd-Frank financial reform legislation creates an “Orderly Liquidation Authority” (OLA) that shares many features in common with the Bankruptcy Code. This is easy to overlook because the legislation uses a language and employs a decision-maker (both borrowed from bank regulation) that will seem foreign to bankruptcy lawyers. Our task in this essay is to identify the core congruities between OLA and the Code. In doing so, we highlight important differences and assess both their constitutionality and policy objectives. We conclude with a few thoughts on the likelihood that OLA will contribute to market stability.
Douglas G. Baird & Edward R. Morrison,
Dodd-Frank for Bankruptcy Lawyers,
Columbia University School of Law, The Center for Law & Economic Studies Working Paper No. 401
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/2415