Depositor Protection Act of 1991

Summary

Depositor Protection Act of 1991 - Title I: FDIC Supplemental Capital and Deposit Insurance Reform - Subtitle A: General Provisions - Amends the Federal Reserve Act to direct the Board of Governors of the Federal Reserve System (the Board) to: (1) assess each Federal Reserve Bank an amount equal to the imputed earnings on reserves held at such bank after a specified date; and (2) distribute specified proportions of such assessments to the Bank Insurance Fund, the Savings Association Insurance Fund, and the National Credit Union Share Insurance Fund. Changes reserve ratio requirements for transaction accounts over $25,000,000 to zero to 12 percent (currently 12 percent, or, at the Board's discretion, from eight to 14 percent). Requires the Board to include in its annual report (Humphrey-Hawkins Report) a detailed justification for the establishment and level of any reserve requirement for monetary purposes in effect at the time of the report. Amends the Federal Deposit Insurance Act to require each Bank Insurance Fund (BIF) member to maintain reserves against expenses according to a prescribed formula. Specifies the composition of such reserves. Authorizes the Federal Deposit Insurance Corporation (FDIC), under certain circumstances, to require BIF members to make pro rata contributions from such reserves as the FDIC deems appropriate. Directs the FDIC to reduce the reserve requirement of BIF members to the extent necessary to ensure that the sum of the balance in the BIF and the aggregate amount of reserves held by BIF members does not exceed the designated reserve ratio. Authorizes the FDIC to issue preferred stock to BIF members. Declares that for purpose of the Federal Deposit Insurance Act any obligation of a bank or savings association issued to certain pension or profit-sharing plans shall not be deemed a deposit nor included as part of the total or insured deposits of a BIF member. Grants the FDIC authority to prohibit any insured depository institution from accepting brokered deposits. Directs the Comptroller General to study the risks and benefits to deposit insurance funds posed by the dual Federal and State banking systems. Sets forth a graduated penalty assessment scheme for insured depository institutions (including credit unions) which file false assessment reports. Authorizes a Federal banking regulatory agency, upon finding that an insured depository institution does not meet minimum capital requirements, to: (1) prohibit the institution's board of directors or trustees from meeting without an agency representative present in a nonvoting observer capacity; or (2) order the institution's board of directors to submit a complete and accurate transcript of each meeting. Requires the FDIC, upon providing assistance to a troubled insured depository institution, to: (1) remove its board of directors; and (2) treat shareholder claims against the institution as if the institution has been closed. Authorizes the FDIC to assess against each insured depository institution and its affiliates, in proportion to its assets and resources, the cost of conducting examinations of such institution. Subtitle B: Retirement of Federal Reserve Stock - Amends the Federal Reserve Act to repeal Federal reserve bank stock requirements. Declares that any eligible bank may apply for membership in the Federal Reserve System and that upon approval of the application the Federal reserve bank shall issue a certificate of membership in the Federal Reserve System and that upon approval of the application the Federal reserve bank shall issue a certificate of membership in the Federal Reserve bank and the Federal Reserve System. Prohibits Federal reserve banks from having any capital stock. Outlines procedures for the redemption and retirement of Federal Reserve bank stock. Revises conditions of eligibility of insured State banks for membership in the Federal Reserve system. Title II: Regulatory Reform - Subtitle A: Office of Thrift Supervision Abolished - Abolishes the Office of Thrift Supervision and the position of Director of such Office. Amends the Home Owners' Loan Act to establish within the Office of the Comptroller of the Currency a separate division to exercise regulatory responsibility for savings associations, including savings and loan holding companies. Vests in the Comptroller of the Currency all former powers of the Directors of the Office of Thrift Supervision. Requires the Comptroller to report annually to the Congress regarding specified actions taken to implement examinations and regulatory functions. States that savings association regulatory activities will be funded only through assessments on savings associations. Subtitle B: Other Regulatory Reform - Amends the Federal Financial Examination Council Act of 1978 to prohibit a Federal financial institutions regulatory agency from accepting or relying upon any examination of a State depository institution if it was conducted by, or under the supervision of, a primary official who was also an elected official. Amends the Federal Deposit Insurance Act to prohibit any insured depository institution (or its affiliate) from making any direct or indirect political contribution to the election campaign of anyone seeking the office of State banking regulator. Requires the Secretary of the Treasury and the Comptroller General to report to the Congress the results of a feasibility study undertaken by each of them to ascertain whether, given the changes in the financial services industry since the completion of the Final Report of the 1984 President's Task Group on Regulation of Financial Services, it would still be desirable to implement the Task Group's recommendations for the reorganization of Federal agencies. Sets a deadline for the Secretary and each appropriate Federal banking agency to report to the Congress the results of a comprehensive agency review of banking regulations which need revision and simplification to enhance the capitalization and profitability of insured depository institutions without adversely affecting their safety and soundness. Amends the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to direct the Credit Standards Advisory Committee to issue commercial real estate lending guidelines for federally insured depository institutions. Directs each appropriate Federal banking agency and the National Credit Union Administration to establish an annual examination program of federally insured depository institutions within their respective jurisdictions. Title III: Financial Service Industry Modernization - Amends Federal law to authorize national banks to establish branches in any State, without specified existing limitations, upon approval of the Comptroller of the Currency. Amends the Bank Holding Company Act of 1956 to repeal the prohibition against acquisition of out-of-State banks by a bank holding company. Permits a bank holding company to acquire shares in a nonbank company if its share position does not exceed 25 percent of the outstanding voting shares and the nonbank company is not under the operational control of the bank holding company. Amends the Home Owners' Loan Act to outline the circumstances under which the application of a national bank that is a Savings Association Insurance Fund member (SAIF) shall be deemed to be a savings association. Amends the Bank Holding Company Act of 1956 to exempt from the seven percent growth ceiling imposed on banks controlled by a non-bank holding company those assets which the bank has acquired from either the Resolution Trust Corporation (RTC) or the FDIC. Permits a bank holding company to engage in activities determined by regulation or order of the Board to be so closely related to banking as to be: (1) of a financial nature and designed to enable bank holding companies to adjust to technological innovations in the provision of banking-related services; or (2) to be of a financial nature and substantially identical to products or services offered by non-banking companies which are competitive with those provided by banks. Repeals notice and hearing opportunity requirements for such regulations or orders. Sets forth expedited approval procedures for nonbanking activities. Title IV: Technical Amendments Relating to Office of Thrift Supervision - Makes technical amendments relating to the Office of Thrift Supervision in the Home Owners' Loan Act, the Federal Deposit Insurance Act, the Bank Holding Company Act of 1956, and Federal law relating to money and finance. Title V: Tax Incentives for the Sale of Distressed Properties - Requires the Comptroller General, the Secretary of the Treasury, and the Director of the Congressional Budget Office to submit a detailed report to the Congress regarding conclusions drawn from separate studies on the use of tax incentives to stimulate the sale of property in distressed real estate markets.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

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• Introduced in House

  summary · EN · 3 January 1991

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