S. 5512
Stop Wall Street Looting Act
Sponsor: Elizabeth Warren
Official summary
No official summary yet.
Text of the bill
I Corporate responsibility
II Anti-looting
III Protecting workers when companies go bankrupt
Section 547 of title 11, United States Code, is amended by adding at the end the following:
(j)
(1) The trustee may avoid a transfer to or for the benefit of an insider of the debtor, a senior executive officer of the debtor, or any of the 20 next most highly compensated employees of the debtor, department or division managers of the debtor, or consultants providing services to the debtor (regardless of whether the executive officer, employee, manager, or consultant is an insider), that—
(A) is made or incurred under a retention, bonus, or incentive plan devised before the date of the filing of the petition; and
(B) does not meet the requirements under section 363(b)(3) or 503(c).
(2) Subsection (c) shall not constitute a defense against the recovery of a transfer under paragraph (1) of this subsection.
(3)
(A) The trustee, or a committee appointed under section 1102, may commence an action to recover a transfer under paragraph (1) of this subsection.
(B) If neither the trustee nor a committee commences an action to recover a transfer under subparagraph (A) before the date of the commencement of a hearing on the confirmation of a plan, any party in interest may apply to the court for authority to recover the transfer for the benefit of the estate, in which case the costs of recovery shall be borne by the estate.
IV Closing tax loopholes
V Investor protection and market transparency
VI Restrictions on securitizing risky corporate debt
VII Miscellaneous