House Banking Committee Chairman Jim Leach introduced legislation Thursday designed to minimize the impact on financial markets and the banking system if a party to a derivatives contract fails.

The Financial Contract Netting Improvement Act would amend a number of laws including the Federal Deposit Insurance Act and the bankruptcy code to protect the enforceability of netting agreements in derivatives contracts.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.