§ 1811. — Federal Deposit Insurance Corporation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1811]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1811. Federal Deposit Insurance Corporation
(a) Establishment of Corporation
There is hereby established a Federal Deposit Insurance Corporation
(hereinafter referred to as the ``Corporation'') which shall insure, as
hereinafter provided, the deposits of all banks and savings associations
which are entitled to the benefits of insurance under this chapter, and
which shall have the powers hereinafter granted.
(b) Asset disposition division
(1) Establishment
The Corporation shall have a separate division of asset
disposition.
(2) Management
The division of asset disposition shall have an administrator
who shall be appointed by the Board of Directors.
(3) Responsibilities of division
The division of asset disposition shall carry out all of the
responsibilities of the Corporation under this chapter relating to
the liquidation of insured depository institutions and the
disposition of assets of such institutions.
(Sept. 21, 1950, ch. 967, Sec. 2[1], 64 Stat. 873; Pub. L. 101-73, title
II, Sec. 202, Aug. 9, 1989, 103 Stat. 188; Pub. L. 103-204, Sec. 22(a),
Dec. 17, 1993, 107 Stat. 2407.)
Codification
The Federal Deposit Insurance Corporation was originally created as
a part of the Federal Reserve Act by act June 16, 1933, ch. 89, Sec. 8,
48 Stat. 168, which added section 12B to the Federal Reserve Act, act
Dec. 23, 1913, ch. 6, 38 Stat. 103, and was classified to section 264 of
this title. Act Dec. 23, 1913, ch. 6, Sec. 12B, as added June 16, 1933,
ch. 89, Sec. 8, 48 Stat. 168 has been amended by acts June 16, 1934, ch.
546, Sec. 1(1)-(10), 48 Stat. 969, 970; June 28, 1935, ch. 335, 49 Stat.
435; Aug. 23, 1935, ch. 614, Sec. 101, 49 Stat. 684; Apr. 21, 1936, ch.
244, 49 Stat. 1237; May 25, 1938, ch. 276, 52 Stat. 442; June 16, 1938,
ch. 489, 52 Stat. 767; June 20, 1939, ch. 214, Sec. 2, 53 Stat. 842;
Apr. 13, 1943, ch. 62, Sec. 1, 57 Stat. 65; Aug. 5, 1947, ch. 492,
Secs. 2, 4, 61 Stat. 773; June 25, 1948, ch. 645, Sec. 21, 62 Stat. 862,
eff. Sept. 1, 1948; Oct. 15, 1949, ch. 695, Sec. 4, 63 Stat. 880; Aug.
17, 1950, ch. 729, Secs. 5-7, 64 Stat. 457.
Section 12B of the Federal Reserve Act was withdrawn from the
Federal Reserve Act and made a separate Act by section 1 of act Sept.
21, 1950, and set out as this chapter.
Prior Provisions
Section is derived from subsec. (a) of former section 264 of this
title. See Codification note above.
Amendments
1993--Pub. L. 103-204 inserted ``Federal Deposit Insurance
Corporation'' as section catchline, redesignated existing provisions as
subsec. (a), inserted heading, and substituted ``There is hereby
established'' for ``There is hereby created'', and added subsec. (b).
1989--Pub. L. 101-73 inserted ``and savings associations'' after
``banks''.
Effective Date of 1993 Amendment
Section 22(b) of Pub. L. 103-204 provided that: ``The amendments
made by subsection (a) [amending this section] shall become effective on
July 1, 1995.''
Short Title of 2000 Amendment
Pub. L. 106-569, title XII, Sec. 1200, Dec. 27, 2000, 114 Stat.
3032, provided that: ``This title [enacting sections 215a-2, 215a-3, and
4805a of this title, amending sections 11, 71 to 72, 83, 215b, 1426,
1464, 1467a, 1817, 1818, 1821, 1828, 1831n, and 3102 of this title,
repealing sections 51, 1465, and 1831f-1 of this title, enacting
provisions set out as a note under section 1817 of this title, and
amending provisions set out as a note under section 1828 of this title]
may be cited as the `Financial Regulatory Relief and Economic Efficiency
Act of 2000'.''
Short Title of 1999 Amendment
Pub. L. 106-102, Sec. 1(a), Nov. 12, 1999, 113 Stat. 1338, provided
that: ``This Act [see Tables for classification] may be cited as the
`Gramm-Leach-Bliley Act'.''
Short Title of 1998 Amendment
Pub. L. 105-277, div. H, Sec. 1, Oct. 21, 1998, 112 Stat. 2681-854,
provided that: ``This Division [amending section 1828 of this title] may
be cited as the `Depository Institution-GSE Affiliation Act of 1998'.''
Short Title of 1997 Amendments
Pub. L. 105-24, Sec. 1, July 3, 1997, 111 Stat. 238, provided that:
``This Act [amending sections 36 and 1831a of this title and enacting
provisions set out as a note under section 1831a of this title] may be
cited as the `Riegle-Neal Amendments Act of 1997'.''
Pub. L. 105-18, title V, Sec. 50001, June 12, 1997, 111 Stat. 211,
provided that: ``This title [enacting provisions set out as notes under
this section and sections 1828, 1831o, and 4008 of this title] may be
cited as the `Depository Institutions Disaster Relief Act of 1997'.''
Short Title of 1996 Amendment
Pub. L. 104-208, div. A, title II, Sec. 2701, Sept. 30, 1996, 110
Stat. 3009-479, provided that: ``This subtitle [subtitle G (Secs. 2701-
2711) of title II of div. A of Pub. L. 104-208 amending sections 24,
338a, 347b, 1431, 1441 to 1441b, 1464, 1467a, 1723i, 1735f-14, 1813,
1815 to 1817, 1821, 1821a, 1823 to 1825, 1827, 1828, 1831a, 1831e,
1831m, 1831o, 1833a, 1834, 1841, and 3341 of this title and section 905
of Title 2, The Congress, repealing section 1831h of this title, and
enacting provisions set out as notes under sections 1441, 1817, and 1821
of this title and section 162 of Title 26, Internal Revenue Code] may be
cited as the `Deposit Insurance Funds Act of 1996'.''
Short Title of 1994 Amendment
Pub. L. 103-328, Sec. 1(a), Sept. 29, 1994, 108 Stat. 2338, provided
that: ``This Act [enacting sections 43, 215a-1, 1831u, and 1835a of this
title, amending sections 30, 36, 215, 215a, 215b, 1441a, 1462a, 1820,
1821, 1828, 1831a, 1831r-1, 1841, 1842, 1846, 2906, 3103 to 3105, and
3106a of this title and section 1927 of Title 7, Agriculture, enacting
provisions set out as notes under this section, sections 215, 1828,
3104, 3105, and 3107 of this title, section 1927 of Title 7, and section
5112 of Title 31, Money and Finance, and amending provisions set out as
notes under this section and sections 5111 and 5112 of Title 31] may be
cited as the `Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994'.''
Short Title of 1993 Amendment
Pub. L. 103-76, Sec. 1, Aug. 12, 1993, 107 Stat. 752, provided that:
``This Act [enacting provisions set out as notes under this section and
sections 1828, 1831o, and 4008 of this title] may be cited as the
`Depository Institutions Disaster Relief Act of 1993'.''
Short Title of 1992 Amendments
Pub. L. 102-550, title XV, Sec. 1500, Oct. 28, 1992, 106 Stat. 4044,
provided that: ``This title [see Tables for classification] may be cited
as the `Annunzio-Wylie Anti-Money Laundering Act'.''
Pub. L. 102-485, Sec. 1, Oct. 23, 1992, 106 Stat. 2771, provided
that: ``This Act [enacting sections 338a and 3352 of this title,
amending section 24 of this title, and enacting provisions set out as
notes under this section and sections 1811, 1828, 1831o, and 4008 of
this title] may be cited as the `Depository Institutions Disaster Relief
Act of 1992'.''
Short Title of 1991 Amendment
Pub. L. 102-242, Sec. 1(a), Dec. 19, 1991, 105 Stat. 2236, as
amended by Pub. L. 102-550, title XVI, Sec. 1601, Oct. 28, 1992, 106
Stat. 4075, provided that: ``This Act [see Tables for classification]
may be cited as the `Federal Deposit Insurance Corporation Improvement
Act of 1991'.''
Pub. L. 102-242, title II, Sec. 231, Dec. 19, 1991, 105 Stat. 2308,
provided that: ``This subtitle [subtitle C (Secs. 231-234) of title II
of Pub. L. 102-242, enacting sections 1834, 1834a, and 1834b of this
title and amending section 1817 of this title] may be cited as the `Bank
Enterprise Act of 1991'.''
Short Title of 1990 Amendment
Pub. L. 101-508, title II, Sec. 2001, Nov. 5, 1990, 104 Stat. 1388-
14, provided that: ``This Act [probably means this subtitle, which is
subtitle A (Secs. 2001-2005) of title II of Pub. L. 101-508, amending
sections 1817 and 1824 of this title] may be cited as the `FDIC
Assessment Rate Act of 1990'.''
Short Title of 1989 Amendment
Section 1(a) of Pub. L. 101-73 provided that: ``This Act [see Tables
for classification] may be cited as the `Financial Institutions Reform,
Recovery, and Enforcement Act of 1989'.''
Short Title of 1987 Amendment
Pub. L. 100-86, title V, Sec. 501, Aug. 10, 1987, 101 Stat. 623,
provided that: ``This title [enacting sections 1439-1 and 1772b of this
title, amending sections 481, 1726, 1727, 1729, 1730a, 1785, 1786, 1813,
1821, 1823, 1828, 1842, 1843, and 1849 of this title and sections 905
and 906 of Title 2, The Congress, enacting provisions set out as a note
under section 1464 of this title, amending provisions set out as a note
under section 1729 of this title, and repealing provisions set out as a
note under section 1464 of this title] may be cited as the `Financial
Institutions Emergency Acquisitions Amendments of 1987'.''
Short Title of 1982 Amendment
Pub. L. 97-320, title I, Sec. 101, Oct. 15, 1982, 96 Stat. 1469,
provided that: ``This title [amending sections 1431, 1436, 1437, 1462,
1464, 1725, 1726, 1727, 1728, 1729, 1730, 1730a, 1785, 1786, 1813, 1814,
1817, 1818, 1820, 1821, 1822, 1823, 1828, 1831c, 1841, 1842, and 1843 of
this title and enacting provisions set out as a note under section 1464
of this title] may be cited as the `Deposit Insurance Flexibility
Act'.''
Pub. L. 97-320, title II, Sec. 201, Oct. 15, 1982, 96 Stat. 1489,
provided that: ``This title [amending sections 1464, 1726, 1729, and
1823 of this title and enacting provisions set out as notes under
section 1823 of this title] may be cited as the `Net Worth Certificate
Act'.''
Short Title of 1981 Amendment
Pub. L. 97-110, title I, Sec. 101, Dec. 26, 1981, 95 Stat. 1513,
provided that: ``This title [amending sections 1813, 1817, and 1821 of
this title] may be cited as the `International Banking Facility Deposit
Insurance Act'.''
Short Title of 1978 Amendment
Pub. L. 95-630, title VI, Sec. 601, Nov. 10, 1978, 92 Stat. 3683,
provided that: ``This title [amending section 1817 of this title] may be
cited as the `Change in Bank Control Act of 1978'.''
Short Title
Section 1 of act Sept. 21, 1950, provided: ``That section 12B of the
Federal Reserve Act, as amended, is hereby withdrawn as a part of that
Act and is made a separate Act [enacting this chapter] to be known as
the `Federal Deposit Insurance Act'.''
Separability
Pub. L. 102-242, title IV, Sec. 481, Dec. 19, 1991, 105 Stat. 2388,
provided that: ``If any provision of this Act [see Short Title of 1991
Amendment note above], or any application of any provision of this Act
to any person or circumstance, is held invalid, the remainder of the
Act, and the application of any remaining provision of the Act to any
other person or circumstance, shall not be affected by such holding.''
Section 1221 of Pub. L. 101-73 provided that: ``If any provision of
this Act [see Short Title of 1989 Amendment note above] or the
application thereof to any person or circumstance is held invalid, the
remainder of the Act and the application of the provision to other
persons not similarly situated or to other circumstances shall not be
affected thereby.''
Construction of 1999 Amendments
Pub. L. 106-102, title II, Sec. 210, Nov. 12, 1999, 113 Stat. 1396,
provided that: ``Nothing in this Act [see Short Title of 1999 Amendment
note above] shall supersede, affect, or otherwise limit the scope and
applicability of the Commodity Exchange Act (7 U.S.C. 1 et seq.).''
Pub. L. 106-102, title VII, Sec. 714, Nov. 12, 1999, 113 Stat. 1470,
provided that: ``Nothing in this Act [see Short Title of 1999 Amendment
note above] shall be construed to repeal any provision of the Community
Reinvestment Act of 1977 [12 U.S.C. 2901 et seq.].''
Construction of 1997 Amendment
Pub. L. 105-18, title V, Sec. 50006, June 12, 1997, 111 Stat. 213,
provided that: ``No provision of this title [see Short Title of 1997
Amendments note above] shall be construed as limiting the authority of
any department or agency under any other provision of law.''
Construction of 1994 Amendment
Pub. L. 103-328, title I, Sec. 111, Sept. 29, 1994, 108 Stat. 2365,
provided that: ``No provision of this title [enacting sections 43, 215a-
1, 1831u, and 1835a of this title, amending sections 30, 36, 215, 215a,
215b, 1462a, 1820, 1828, 1831a, 1831r-1, 1841, 1842, 1846, 2906, 3103 to
3105, and 3106a of this title and section 1927 of Title 7, Agriculture,
enacting provisions set out as notes under this section, sections 215,
1828, 3104, 3105, and 3107 of this title and section 1927 of Title 7,
and amending provisions set out as a note under this section] and no
amendment made by this title to any other provision of law shall be
construed as affecting in any way--
``(1) the authority of any State or political subdivision of any
State to adopt, apply, or administer any tax or method of taxation
to any bank, bank holding company, or foreign bank, or any affiliate
of any such bank, bank holding company, or foreign bank, to the
extent that such tax or tax method is otherwise permissible by or
under the Constitution of the United States or other Federal law;
``(2) the right of any State, or any political subdivision of
any State, to impose or maintain a nondiscriminatory franchise tax
or other nonproperty tax instead of a franchise tax in accordance
with section 3124 of title 31, United States Code; or
``(3) the applicability of section 5197 of the Revised Statutes
[section 85 of this title] or section 27 of the Federal Deposit
Insurance Act [section 1831d of this title].''
Construction of 1993 Amendments
Pub. L. 103-76, Sec. 7, Aug. 12, 1993, 107 Stat. 755, provided that:
``Nothing in this Act [see Short Title of 1993 Amendment note above]
limits the authority of any department or agency under any other
provision of law.''
Construction of 1992 Amendments
Pub. L. 102-485, Sec. 8, Oct. 23, 1992, 106 Stat. 2775, provided
that: ``Nothing in this Act [see Short Title of 1992 Amendments note
above] limits the authority of any department or agency under any other
provision of law.''
Year 2000 Readiness for Financial Institutions
Pub. L. 105-164, Sec. 2, Mar. 20, 1998, 112 Stat. 32, provided that:
``(a) Findings.--The Congress finds that--
``(1) the Year 2000 computer problem poses a serious challenge
to the American economy, including the Nation's banking and
financial services industries;
``(2) thousands of banks, savings associations, and credit
unions rely heavily on internal information technology and computer
systems, as well as outside service providers, for mission-critical
functions, such as check clearing, direct deposit, accounting,
automated teller machine networks, credit card processing, and data
exchanges with domestic and international borrowers, customers, and
other financial institutions; and
``(3) Federal financial regulatory agencies must have sufficient
examination authority to ensure that the safety and soundness of the
Nation's financial institutions will not be at risk.
``(b) Definitions.--For purposes of this section--
``(1) the terms `depository institution' and `Federal banking
agency' have the same meanings as in section 3 of the Federal
Deposit Insurance Act [12 U.S.C. 1813];
``(2) the term `Federal home loan bank' has the same meaning as
in section 2 of the Federal Home Loan Bank Act [12 U.S.C. 1422];
``(3) the term `Federal reserve bank' means a reserve bank
established under the Federal Reserve Act [12 U.S.C. 221 et seq.];
``(4) the term `insured credit union' has the same meaning as in
section 101 of the Federal Credit Union Act [12 U.S.C. 1752]; and
``(5) the term `Year 2000 computer problem' means, with respect
to information technology, any problem which prevents such
technology from accurately processing, calculating, comparing, or
sequencing date or time data--
``(A) from, into, or between--
``(i) the 20th and 21st centuries; or
``(ii) the years 1999 and 2000; or
``(B) with regard to leap year calculations.
``(c) Seminars and Model Approaches to Year 2000 Computer Problem.--
``(1) Seminars.--
``(A) In general.--Each Federal banking agency and the
National Credit Union Administration Board shall offer seminars
to all depository institutions and insured credit unions under
the jurisdiction of such agency on the implication of the Year
2000 computer problem for--
``(i) the safe and sound operations of such depository
institutions and credit unions; and
``(ii) transactions with other financial institutions,
including Federal reserve banks and Federal home loan banks.
``(B) Content and schedule.--The content and schedule of
seminars offered pursuant to subparagraph (A) shall be
determined by each Federal banking agency and the National
Credit Union Administration Board taking into account the
resources and examination priorities of such agency.
``(2) Model approaches.--
``(A) In general.--Each Federal banking agency and the
National Credit Union Administration Board shall make available
to each depository institution and insured credit union under
the jurisdiction of such agency model approaches to common Year
2000 computer problems, such as model approaches with regard to
project management, vendor contracts, testing regimes, and
business continuity planning.
``(B) Variety of approaches.--In developing model approaches
to the Year 2000 computer problem pursuant to subparagraph (A),
each Federal banking agency and the National Credit Union
Administration Board shall take into account the need to develop
a variety of approaches to correspond to the variety of
depository institutions or credit unions within the jurisdiction
of the agency.
``(3) Cooperation.--In carrying out this section, the Federal
banking agencies and the National Credit Union Administration Board
may cooperate and coordinate their activities with each other, the
Financial Institutions Examination Council, and appropriate
organizations representing depository institutions and credit
unions.''
Study and Report on United States Financial Services System
Pub. L. 103-328, title II, Sec. 210, Sept. 29, 1994, 108 Stat. 2379,
provided that:
``(a) Study.--
``(1) In general.--The Secretary of the Treasury (hereafter in
this section referred to as the `Secretary') shall, after
consultation with the Advisory Commission on Financial Services
established under subsection (b), and consultation in accordance
with paragraph (3), conduct a study of matters relating to the
strengths and weaknesses of the United States financial services
system in meeting the needs of the system's users, including the
needs of--
``(A) individual consumers and households;
``(B) communities;
``(C) agriculture;
``(D) small-, medium-, and large-sized businesses;
``(E) governmental and nonprofit entities; and
``(F) exporters and other users of international financial
services.
``(2) Matters studied.--The study required under paragraph (1)
shall include consideration of--
``(A) the changes underway in the national and international
economies and the financial services industry, and how those
changes affect the financial services system's ability to
efficiently meet the needs of the national economy and the
system's users during the next 10 years and beyond; and
``(B) the adequacy of existing statutes and regulations, and
the existing regulatory structure, to meet the needs of the
financial services system's users effectively, efficiently, and
without unfair, anticompetitive, or discriminatory practices.
``(3) Consultation.--Consultation in accordance with this
paragraph means consultation with--
``(A) the Board of Governors of the Federal Reserve System;
``(B) the Commodity Futures Trading Commission;
``(C) the Comptroller of the Currency;
``(D) the Director of the Office of Thrift Supervision;
``(E) the Federal Deposit Insurance Corporation;
``(F) the Secretary of the Department of Housing and Urban
Development;
``(G) the Securities and Exchange Commission;
``(H) the Director of the Congressional Budget Office; and
``(I) the Comptroller General of the United States.
``(b) Advisory Commission on Financial Services.--
``(1) Establishment.--There is established the Advisory
Commission on Financial Services (hereafter in this section referred
to as the `Advisory Commission').
``(2) Membership of commission.--The Advisory Commission--
``(A) shall consist of not less than 9 nor more than 14
members appointed by the Secretary from among individuals--
``(i) who are--
``(I) users of the financial services system; or
``(II) experts in finance or on the financial services system;
and
``(ii) who are not employees of the Federal Government;
and
``(B) shall include representatives of business,
agriculture, and consumers.
``(3) Chairperson.--The Secretary or the Secretary's designee
shall serve as Chairperson of the Advisory Commission.
``(4) Travel expenses.--Members of the Advisory Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States Code, while
away from their homes or regular places of business in performing
services for the Advisory Commission.
``(5) Termination.--The Advisory Commission shall terminate 30
days after the date of submission of the report required under
subsection (d).
``(c) Recommendations.--Based on the results of the study conducted
under subsection (a), the Secretary shall develop such recommendations
as may be appropriate for changes in statutes, regulations, and policies
to improve the operation of the financial services system, including
changes to better--
``(1) meet the needs of, and assure access to the system for,
current and potential users;
``(2) promote economic growth;
``(3) protect consumers;
``(4) promote competition and efficiency;
``(5) avoid risk to the taxpayers;
``(6) control systemic risk; and
``(7) eliminate discrimination.
``(d) Report.--Not later than 15 months after the date of enactment
of this Act [Sept. 29, 1994], the Secretary shall submit to the
President pro tempore of the Senate and the Speaker of the House of
Representatives a report describing the study conducted under subsection
(a) and any recommendations developed under subsection (c).''
Study and Report on Depository Institutions Disaster Relief Acts of 1992
and 1993
Pub. L. 103-76, Sec. 5, Aug. 12, 1993, 107 Stat. 754, directed
Secretary of the Treasury, after consultation with appropriate Federal
banking agencies to conduct a study that (1) examined how agencies and
entities granted authority by Depository Institutions Disaster Relief
Act of 1992 and by this Act have exercised such authority, (2) evaluated
the utility of such Acts in facilitating recovery from disasters
consistent with safety and soundness of depository institutions, and (3)
contained recommendations with respect to whether the authority granted
by this Act should be made permanent, and, not later than 18 months
after Aug. 12, 1993, submit to Congress a report on the results of the
study.
Feasibility Study on Authorizing Insured and Uninsured Deposit Accounts
Pub. L. 102-242, title III, Sec. 321, Dec. 19, 1991, 105 Stat. 2370,
directed Federal Deposit Insurance Corporation to study the feasibility
of authorizing insured depository institutions to offer both insured and
uninsured deposit accounts to customers, specified factors to be
considered in conducting the study, and directed Corporation, before the
end of the 6-month period beginning on Dec. 19, 1991, to submit a report
to Congress containing the Corporation's findings and conclusions with
respect to the study and any recommendations for legislative or
administrative action the Corporation determined to be appropriate.
Private Reinsurance Study
Pub. L. 102-242, title III, Sec. 322, Dec. 19, 1991, 105 Stat. 2370,
directed Board of Directors of Federal Deposit Insurance Corporation, in
consultation with Secretary of the Treasury and individuals from the
private sector with expertise in private insurance, private reinsurance,
depository institutions, or economics, to conduct a study of the
feasibility of establishing a private reinsurance system, such study to
include a demonstration project consisting of a simulation, by a sample
of private reinsurers and insured depository institutions, of the
activities required for a private reinsurance system, with a report to
Congress on the study before the end of the 18-month period beginning on
Dec. 19, 1991.
Purposes of 1989 Amendment
Section 101 of Pub. L. 101-73 provided that: ``The purposes of this
Act [see Short Title of 1989 Amendment note above] are as follows:
``(1) To promote, through regulatory reform, a safe and stable
system of affordable housing finance.
``(2) To improve the supervision of savings associations by
strengthening capital, accounting, and other supervisory standards.
``(3) To curtail investments and other activities of savings
associations that pose unacceptable risks to the Federal deposit
insurance funds.
``(4) To promote the independence of the Federal Deposit
Insurance Corporation from the institutions the deposits of which it
insures, by providing an independent board of directors, adequate
funding, and appropriate powers.
``(5) To put the Federal deposit insurance funds on a sound
financial footing.
``(6) To establish an Office of Thrift Supervision in the
Department of the Treasury, under the general oversight of the
Secretary of the Treasury.
``(7) To establish a new corporation, to be known as the
Resolution Trust Corporation, to contain, manage, and resolve failed
savings associations.
``(8) To provide funds from public and private sources to deal
expeditiously with failed depository institutions.
``(9) To strengthen the enforcement powers of Federal regulators
of depository institutions.
``(10) To strengthen the civil sanctions and criminal penalties
for defrauding or otherwise damaging depository institutions and
their depositors.''
Studies of Federal Deposit Insurance, Banking Services, and Safety and
Soundness of Government-Sponsored Enterprises
Title X of Pub. L. 101-73, as amended by Pub. L. 103-328, title I,
Sec. 108(a), Sept. 29, 1994, 108 Stat. 2361; Pub. L. 104-208, div. A,
title II, Sec. 2608, Sept. 30, 1996, 110 Stat. 3009-474, provided that:
``SEC. 1001. STUDY OF FEDERAL DEPOSIT INSURANCE SYSTEM.
``(a) In General.--The Secretary of the Treasury, in consultation
with the Comptroller of the Currency, the Chairman of the Board of
Governors of the Federal Reserve System, the Director of the Office of
Thrift Supervision, the Chairperson of the Federal Deposit Insurance
Corporation, the Chairman of the National Credit Union Administration
Board, the Director of the Office of Management and Budget, and
individuals from the private sector, shall conduct a study of the
Federal deposit insurance system.
``(b) Topics.--As part of the study required under subsection (a),
the Secretary of the Treasury shall investigate, review, and evaluate
the following:
``(1) The feasibility of establishing a deposit insurance
premium rate structure which would take into account, on an
institution-by-institution basis--
``(A) asset quality risk;
``(B) interest rate risk;
``(C) quality of management; and
``(D) profitability and capital.
``(2) Incentives for market discipline, including the advantages
of--
``(A) limiting each depositor to 1 insured account per
institution;
``(B) reducing the amount insured, or providing for a
graduated decrease in the percentage of the amounts deposited
which are insured as the amounts deposited increase;
``(C) combining Federal with private insurance in order to
bring the market discipline of private insurance to bear on the
management of the depository institution; and
``(D) ensuring, by law or regulation, that on the closing of
any insured depository institution, the appropriate Federal
insurance fund will honor only its explicit liabilities, and
will never make good any losses on deposits not explicitly
covered by Federal deposit insurance.
``(3) The scope of deposit insurance coverage and its impact on
the liability of the insurance fund.
``(4) The feasibility of market value accounting, assessments on
foreign deposits, limitations on brokered deposits, the addition of
collateralized borrowings to the deposit insurance base, and
multiple insured accounts.
``(5) The impact on the deposit insurance funds of varying State
and Federal bankruptcy exemptions and the feasibility of--
``(A) uniform exemptions;
``(B) limits on exemptions when necessary to repay
obligations owed to federally insured depository institutions;
and
``(C) requiring borrowers from federally insured depository
institutions to post a personal or corporate bond when obtaining
a mortgage on real property.
``(6) Policies to be followed with respect to the
recapitalization or closure of insured depository institutions whose
capital is depleted to, or near the point of, insolvency.
``(7) The efficiency of housing subsidies through the Federal
home loan bank system.
``(8) Alternatives to Federal deposit insurance.
``(9) The feasibility of developing and administering, through
the appropriate Federal banking agency, an examination of the
principles and techniques of risk management and the application of
such principles and techniques to the management of insured
institutions.
``(10) The adequacy of capital of insured credit unions and the
National Credit Union Share Insurance Fund, including whether the
supervision of such fund should be separated from the other
functions of the National Credit Union Administration.
``(11) The feasibility of requiring, by statute or other means,
that--
``(A) independent auditors and accountants of a depository
institution report the results of any audit of the institution
to the relevant regulatory agency or agencies;
``(B) a regulator share reports on a depository institution
with the institution's independent auditors and accountants; and
``(C) independent auditors and accountants participate in
conferences between the regulator and the depository
institution.
``(12) The feasibility of adopting regulations which are the
same as or similar to the provisions of England's Banking Act, 1987,
ch. 22 (4 Halsbury's Statutes of England and Wales 527-650 (1987)),
enacted on May 15, 1987, relating to the Bank of England's
relationship with auditors and reporting accountants (including
sections 8, 39, 41, 45, 46, 47, 82, 83, 85, and 94 of such Act).
``(c) Final Report.--Not later than the close of the 18-month period
beginning on the date of the enactment of this Act [Aug. 9, 1989], the
Secretary of the Treasury shall submit to the Congress a final report
containing a detailed statement of findings made, and conclusions drawn
from, the study conducted under this section, including such
recommendations for administrative and legislative action as the
Secretary determines to be appropriate.
``SEC. 1002. SURVEY OF BANK FEES AND SERVICES.
``(a) Annual Survey Required.--The Board of Governors of the Federal
Reserve System shall obtain a sample, which is representative by
geographic location and size of the institution, of--
``(1) certain retail banking services provided by insured
depository institutions; and
``(2) the fees, if any, which are imposed by such institutions
for providing any such service, including fees imposed for not
sufficient funds, deposit items returned, and automated teller
machine transactions.
``(b) Annual Report to Congress Required.--
``(1) Preparation.--The Board of Governors of the Federal
Reserve System shall prepare a report of the results of each survey
conducted pursuant to subsection (a).
``(2) Contents of the report.--Each report prepared pursuant to
paragraph (1) shall include--
``(A) a description of any discernible trend, in the Nation
as a whole, in each of the 50 States, and in each consolidated
metropolitan statistical area or primary metropolitan
statistical area (as defined by the Director of the Office of
Management and Budget), in the cost and availability of retail
banking services (including fees imposed for providing such
services), that delineates differences between insured
depository institutions on the basis of both the size of the
institution and any engagement of the institution in multistate
activity; and
``(B) a description of the correlation, if any, among the
following factors:
``(i) An increase or decrease in the amount of any
deposit insurance premium assessed by the Federal Deposit
Insurance Corporation against insured depository
institutions.
``(ii) An increase or decrease in the amount of the fees
imposed by such institutions for providing retail banking
services.
``(iii) A decrease in the availability of such services.
``(3) Submission to congress.--The Board of Governors of the
Federal Reserve System shall submit an annual report to the Congress
not later than September 1, 1995, and not later than June 1 of each
subsequent year.
``SEC. 1003. GENERAL ACCOUNTING OFFICE STUDY.
``(a) In General.--The Comptroller General of the United States
shall conduct a study of deposit insurance issues raised by section 1001
emphasizing in particular--
``(1) analysis of the policy considerations affecting the scope
of deposit insurance coverage;
``(2) evaluation of the risks associated with bank insurance
contracts both as to the issuing institution and the deposit
insurance funds; and
``(3) the effect of proposed changes in the definition of
`deposit' on--
``(A) market discipline; and
``(B) the ability of other participants in capital markets
to raise funds.
``(b) Report.--Not later than the close of the 18-month period
beginning on the date of the enactment of this Act [Aug. 9, 1989], the
Comptroller General shall submit to the Congress the results of the
study required by subsection (a).
``SEC. 1004. STUDY REGARDING CAPITAL REQUIREMENTS FOR GOVERNMENT-
SPONSORED ENTERPRISES.
``(a) In General.--The Comptroller General of the United States
shall conduct a study of the risks undertaken by all government-
sponsored enterprises and the appropriate level of capital for such
enterprises consistent with--
``(1) the financial soundness and stability of the government-
sponsored enterprises;
``(2) minimizing any potential financial exposure of the Federal
Government; and
``(3) minimizing any potential impact on borrowing of the
Federal Government.
``(b) Consultation and Cooperation With Other Agencies.--The
Comptroller General shall determine the structure and methodology of the
study under this section in consultation with and with the cooperation
of the Secretary of Agriculture and the Farm Credit Administration (with
respect to the Farm Credit Banks, the Banks for Cooperatives, and the
Federal Agricultural Mortgage Corporation), the Secretary of Education
(with respect to the Student Loan Marketing Association and the College
Construction Loan Corporation), the Secretary of Housing and Urban
Development (with respect to the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation), and the government-
sponsored enterprises.
``(c) Access to Relevant Information.--Each government-sponsored
enterprise shall provide full and prompt access to the Comptroller
General to its books and records and shall promptly provide any other
information requested by the Comptroller General. In conducting the
study under this section, the Comptroller General may request
information from, or the assistance of, any department or agency of the
Federal Government that is authorized by law to supervise or approve any
of the activities of any government-sponsored enterprise.
``(d) Specific Requirements.--The study shall examine and evaluate--
``(1) the degrees and types of risks that are undertaken by the
government-sponsored enterprises in the course of their operations,
including credit risk, interest rate risk, management and
operational risk, and business risk;
``(2) the most appropriate method or methods for quantifying the
types of risks undertaken by the government-sponsored enterprises;
``(3) the actual level of risk that exists with respect to each
government-sponsored enterprise, which shall take into account
factors including the volume and type of securities outstanding that
are issued or guaranteed by each government-sponsored enterprise and
the extent of off-balance sheet expense of each government-sponsored
enterprise;
``(4) the appropriateness of applying a risk-based capital
standard to each government-sponsored enterprise, taking into
account the nature of the business each government-sponsored
enterprise conducts;
``(5) the costs and benefits to the public from application of a
risk-based capital standard to the government-sponsored enterprises
and the impact of such a standard on the capability of each
government-sponsored enterprise to carry out its purpose under law;
``(6) the impact, if any, of the operation of the government-
sponsored enterprises on borrowing of the Federal Government;
``(7) the overall level of capital appropriate for each of the
government-sponsored enterprises; and
``(8) the quality and timeliness of information currently
available to the public and the Federal Government concerning the
extent and nature of the activities of government-sponsored
enterprises and the financial risk associated with such activities.
``(e) Reports to Congress.--The Comptroller General shall submit to
the Congress 2 reports regarding the study under this section. The first
report shall be submitted to the Congress not later than 9 months after
the date of the enactment of this Act [Aug. 9, 1989] and the second
report shall be submitted to the Congress not later than 21 months after
the date of the enactment of this Act. Each report shall set forth--
``(1) the results of the study under this section;
``(2) any recommendations of the Comptroller General with
respect to appropriate capital standards for each government-
sponsored enterprise;
``(3) any recommendations of the Comptroller General with
respect to information that, in the determination of the Comptroller
General, should be provided to the Congress concerning--
``(A) the extent and nature of the activities of the
government-sponsored enterprises; and
``(B) the nature of any periodic reports that the
Comptroller General believes should be submitted to the Congress
relating to the capital condition and operations of the
government-sponsored enterprises; and
``(4) any recommendations and opinions of the Secretary of
Agriculture, the Secretary of Education, the Secretary of Housing
and Urban Development, and the Secretary of the Treasury regarding
the report, to the extent that the recommendations and views of such
officers differ from the recommendations and opinions of the
Comptroller General.
``(f) Definition.--For purposes of this section, the term
`government-sponsored enterprises' means the Federal Home Loan Mortgage
Corporation, the Federal National Mortgage Association, the Federal Home
Loan Bank System, the Farm Credit Banks, the Banks for Cooperatives, the
Federal Agricultural Mortgage Corporation, the College Construction Loan
Insurance Corporation, the Student Loan Marketing Association.''
[Pub. L. 103-328, title I, Sec. 108(b), Sept. 29, 1994, 108 Stat.
2362, provided that: ``The requirements of subsection (a) [amending
section 1002 of Pub. L. 101-73, set out above] shall not apply after the
end of the 7-year period beginning on the date of enactment of this Act
[Sept. 29, 1994].'']
Expansion of Use of Underutilized Minority Banks, Women's Banks, and
Low-Income Credit Unions
Section 1204 of Pub. L. 101-73 provided that:
``(a) Consultation on Expanded Use.--The Secretary of the Treasury
shall consult with the appropriate Federal banking agencies and the
National Credit Union Administration Board on methods for increasing the
use of underutilized minority banks, women's banks, and limited income
credit unions as depositaries or financial agents of Federal agencies.
``(b) Report to Congress.--The Secretary of the Treasury shall
include, in the 1st annual report submitted to the Congress under
section 331(a) of title 31, United States Code, after the completion of
the consultation required by subsection (a), a report of the actions
taken by the Secretary to increase the use of underutilized minority
banks, women's banks, and limited income credit unions as depositaries
or financial agents of Federal agencies.
``(c) Definitions.--For purposes of this section:
``(1) Appropriate federal banking agency.--The term `appropriate
Federal banking agency' has the meaning given to such term in
section 3(q) of the Federal Deposit Insurance Act [12 U.S.C.
1813(q)].
``(2) Minority bank.--The term `minority bank' means any
depository institution described in clause (i), (ii), or (iii) of
section 19(b)(1)(A) of the Federal Reserve Act [12 U.S.C.
461(b)(1)(A)(i), (ii), (iii)]--
``(A) more than 50 percent of the ownership or control of
which is held by 1 or more minority individuals; and
``(B) more than 50 percent of the net profit or loss of
which accrues to 1 or more minority individuals.
``(3) Minority.--The term `minority' means any Black American,
Native American, Hispanic American, or Asian American.
``(4) Low-income credit union.--The term `low-income credit
union' means any depository institution described in section
19(b)(1)(A)(iv) of the Federal Reserve Act which serves
predominately low-income members (as defined by the National Credit
Union Administration Board pursuant to section 101(5) of the Federal
Credit Union Act [12 U.S.C. 1752(5)]).
``(5) Women's bank.--The term `women's bank' means any
depository institution described in clause (i), (ii), or (iii) of
section 19(b)(1)(A) of the Federal Reserve Act--
``(A) more than 50 percent of the outstanding shares of
which are held by 1 or more women;
``(B) a majority of the directors on the board of directors
of which are women; and
``(C) a significant percentage of senior management
positions of which are held by women.''
Small Investor Participation in United States Government Securities
Offerings; Study by Secretary of the Treasury
Section 1207 of Pub. L. 101-73 provided that: ``Not later than the
close of the 18-month period beginning on the date of the enactment of
this Act [Aug. 9, 1989], the Secretary of the Treasury shall conduct a
study and report to the Congress on--
``(1) whether, and to what extent, the issuance of securities by
the United States Government in small denominations benefits small
investors, increases the participation of small investors in United
States Government securities offerings, and promotes savings and
thrift by the average United States taxpayer; and
``(2) additional measures the Secretary recommends be taken to
expand the availability of securities issued by the United States
Government to benefit small investors, increase their participation
in United States Government securities offerings, and to promote
savings and thrift by the average United States taxpayer.''
Expenditure of Taxpayer Money Only for Deposit Insurance Purposes
Section 1208 of Pub. L. 101-73 provided that: ``Funds appropriated
to the Secretary of the Treasury pursuant to an authorization contained
in this Act [see Short Title of 1989 Amendment note above], and any
amount authorized to be borrowed from the Secretary of the Treasury by
any entity pursuant to this Act, may only be used as permitted by law,
and may not otherwise be used for making any payment to any shareholder
in, or creditor to, any insured depository institution.''
Studies of Relationship Between Public Debt and Activities of
Government-Sponsored Enterprises
Section 1404 of Pub. L. 101-73 provided that:
``(a) In General.--In order to better manage the bonded indebtedness
of the United States, the Secretary shall conduct 2 annual studies to
assess the financial safety and soundness of the activities of all
Government-sponsored enterprises and the impact of their operations on
Federal borrowing.
``(b) Access to Relevant Information.--
``(1) Information from gse's.--Each Government-sponsored
enterprise shall provide full and prompt access to the Secretary to
its books and records, and shall promptly provide any other
information requested by the Secretary.
``(2) Information from supervisory agencies.--In conducting the
studies under this section, the Secretary may request information
from, or the assistance of, any Federal department or agency
authorized by law to supervise the activities of any Government-
sponsored enterprise.
``(3) Confidentiality of information.--
``(A) In general.--The Secretary shall determine and
maintain the confidentiality of any book, record, or information
made available under this subsection in a manner generally
consistent with the level of confidentiality established for the
material by the Government-sponsored enterprise involved.
``(B) Exemption from public disclosure requirements.--The
Department of the Treasury shall be exempt from section 552 of
title 5, United States Code, with respect to any book, record,
or information made available under this subsection and
determined by the Secretary to be confidential under
subparagraph (A).
``(C) Penalty for unauthorized disclosure.--Any officer or
employee of the Department of the Treasury shall be subject to
the penalties set forth in section 1906 of title 18, United
States Code, if--
``(i) by virtue of his employment or official position,
he has possession of or access to any book, record, or
information made available under this subsection and
determined by the Secretary to be confidential under
subparagraph (A); and
``(ii) he discloses the material in any manner other
than--
``(I) to an officer or employee of the Department of the
Treasury; or
``(II) pursuant to the exceptions set forth in such section
1906.
``(c) Assessment of Risk.--In assessing the financial safety and
soundness of the activities of Government-sponsored enterprises, and the
impact of their activities on Federal borrowing, the Secretary shall
quantify the risks associated with each Government-sponsored enterprise.
In quantifying such risks, the Secretary shall determine the volume and
type of securities outstanding which are issued or guaranteed by each
Government-sponsored enterprise, the capitalization of each Government-
sponsored enterprise, and the degree of risk involved in the operations
of each Government-sponsored enterprise due to factors such as credit
risk, interest rate risk, management and operations risk, and business
risk. The Secretary shall also report on the quality and timeliness of
information currently available to the public and the Federal Government
concerning the extent and nature of the activities of Government-
sponsored enterprises and the financial risk associated with such
activities.
``(d) Reports to Congress.--The Secretary shall submit to the
Congress--
``(1) by May 15, 1990, a report setting forth the results of the
1st annual study conducted under this section; and
``(2) by May 15, 1991, a report setting forth the results of the
2nd annual study conducted under this section.
``(e) Definitions.--For purposes of this section:
``(1) Government-sponsored enterprise.--The term `Government-
sponsored enterprise' means--
``(A) the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation, the Federal Home Loan Bank
System, the Farm Credit Banks, the Banks for Cooperatives, the
Federal Agricultural Mortgage Corporation, the Student Loan
Marketing Association, the College Construction Loan Insurance
Association, and any of their affiliated or member institutions;
and
``(B) any other Government-sponsored enterprise, as
designated by the Secretary.
``(2) Secretary.--The term `Secretary' means the Secretary of
the Treasury or his delegate.''
