To require the Chairperson of the Financial Stability Oversight Council to provide contingency plans for a disruption in the timing of payment on Treasury securities, and for other purposes.
Impact
Should HB7691 be enacted, it could significantly impact the operational protocols within the financial markets related to Treasury securities. The mandated action would help prepare for potential crises, ensuring that both domestic and foreign holders of Treasury securities are protected during unforeseen events. The bill aims to enhance the confidence of market participants and stabilize government securities' market integrity by establishing clear protocols for payment delays.
Summary
House Bill 7691 mandates the Chairperson of the Financial Stability Oversight Council to develop and submit contingency plans for potential disruptions in the timing of payments on Treasury securities. The bill addresses a range of scenarios that could interrupt financial operations, including systems failures, cyberattacks, natural disasters, and issues arising from the government reaching its statutory debt limit. This comprehensive requirement reflects the ongoing need to ensure a resilient financial infrastructure capable of withstanding various shocks and challenges.
Contention
While the bill has broad implications for financial oversight, it may encounter some contention regarding the adequacy of the proposed contingency measures. Critics might argue that merely outlining plans is insufficient and that stronger, more proactive measures are required to prevent calamities before they occur. There may also be debates about the enforcement and practicality of implementing these contingency plans, especially regarding how they might affect timely payments and overall trust in government-issued securities.
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Financial Stability Oversight Council related to "Guidance on Nonbank Financial Company Determinations".
To authorize the Secretary of the Treasury to make payments to the Quapaw Nation and certain members of the Quapaw Nation in accordance with the recommendation of the United States Court of Federal Claims, and for other purposes.