H.R. 1667 would establish a new bankruptcy process for certain financial institutions with assets of more than $50 billion. The new process could assist institutions that may be too complex to resolve through bankruptcy proceedings under existing laws. CBO estimates that enacting the legislation would have no significant net effect on the federal budget.
Pay-as-you-go procedures apply because enacting the legislation could affect direct spending and revenues related to bankruptcy proceedings and other programs aimed at resolving the failure of banks and other financial firms. However, CBO estimates that those effects would not be significant.
CBO estimates that enacting H.R. 1667 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year period beginning in 2028.
H.R. 1667 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA).
H.R. 1667 would impose a private-sector mandate, as defined in UMRA, on entities that have certain types of contracts with bank holding companies or large financial institutions that enter the bankruptcy process established under the bill. Because of uncertainty about both the number and value of contracts that would be affected and the amount of losses that would occur as a result of the bill, CBO cannot determine whether the cost of the mandate would exceed the annual threshold established in UMRA for private-sector mandates ($156 million in 2017, adjusted annually for inflation).