Federal Deposit Insurance Corporation Improvement Act of 1991

Summary

Federal Deposit Insurance Corporation Improvement Act of 1991 - Title I: FDIC Funding - Amends the Federal Deposit Insurance Act to increase from $5,000,000,000 to $25,000,000,000 the aggregate amount of outstanding loans which the Federal Deposit Insurance Corporation (FDIC) may have from the Treasury for insurance purposes at any one time. Prescribes guidelines for such outstanding loans. Sets as a prerequisite to FDIC loans from the Treasury an agreed-upon repayment schedule that demonstrates that FDIC income from assessments will be sufficient to amortize principal and interest within the period established in the repayment schedule. Prescribes circumstances under which the FDIC may impose special emergency assessments allocated between Bank Insurance Fund members (BIF) and Savings Association Insurance Fund members (SAIF) to reflect the degree to which proceeds of borrowed amounts were used for the benefit of the respective insurance funds. Title II: Supervisory Reforms - Prescribes guidelines for: (1) mandatory annual on-site examinations of all insured depository institutions (except those in conservatorship); (2) the establishment of a banking examination improvement program; (3) independent annual audits of insured depository institutions; (4) assessments to cover examination costs of State nonmember banks and other institutions; and (5) deposit insurance application procedures. Title III: Accounting Reforms - Mandates that the accounting principles applicable to all insured depository institutions be uniform and consistent with generally accepted accounting principles. Prescribes guidelines for the review and implementation of accounting procedures by the appropriate Federal banking agencies. Title IV: Prompt Corrective Action - Directs the FDIC to establish by regulation critical capital levels for insured depository institutions. Prescribes capitalization guidelines for insured depository institutions, including: (1) a mandatory review and report to the Congress by the FDIC Inspector General with respect to insurance fund losses caused by an undercapitalized institution; and (2) FDIC authorization to appoint itself as conservator for insured depository institutions in order to prevent losses to a deposit insurance fund. Title V: Least-Cost Resolutions - Establishes as a prerequisite to FDIC assistance to troubled insured depository institutions that the FDIC determine the least costly resolution according to prescribed criteria. Mandates an annual audit by the General Accounting Office to determine compliance with the least-cost approach by the FDIC and the Resolution Trust Corporation. Prescribes procedures under which the receiver of an insured depository institution may disallow a secured claim in excess of the value of the collateral to the extent of the excess portion, and subsequently treat such portion as an unsecured claim. Directs the FDIC to take action to ensure that it receives on a regular basis from each insured depository institution an accurate accounting of all insured, preferred, and uninsured deposits. Amends the Federal Reserve Act to restrict to specified time frames the use of liquidity lending to undercapitalized depository institutions for depositor insurance fund purposes. Amends the Federal Deposit Insurance Act to preclude FDIC assistance to a troubled depository institution unless the FDIC: (1) removes the board of directors of such institution; and (2) repudiates shareholder claims in such institution.

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Documents

5 official files

• Reported in House (text)

  Reported in House · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Failed of passage in House

  summary · EN · 14 November 1991

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• Reported to House with amendment(s)

  summary · EN · 7 November 1991

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• Introduced in House

  summary · EN · 25 April 1991

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