H.R. 1550 would require the Financial Stability Oversight Council (FSOC) to change the procedures by which it designates certain companies as systemically important financial institutions (SIFIs). Those procedural changes would apply only to SIFIs that are not banking institutions and would affect the regulatory activities of other federal financial regulators including the Board of Governors of the Federal Reserve.
Based on information from FSOC and other federal financial regulators, CBO estimates that enacting the legislation would increase net direct spending by $73 million and increase revenues by $22 million over the next 10 years, leading to a net increase in the deficit of $51 million over the 2017-2026 period. Some of that cost would be recovered from financial institutions in the years after 2026. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues.
CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027.
H.R. 1550 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA).
CBO expects that the federal financial regulators would increase fees and other assessments to offset the costs of implementing the bill. Doing so would increase the cost of an existing private-sector mandate on entities required to pay those assessments. Based on information from the federal financial regulators, CBO estimates that the aggregate increase in fees and assessments would fall well below the annual threshold established in UMRA for private-sector mandates ($154 million in 2016, adjusted for inflation).