Financial Institutions Emergency Acquisitions Amendments of 1987

Summary

Financial Institutions Emergency Acquisitions Amendments of 1987 - Amends the Federal Deposit Insurance Act to revise provisions governing interstate acquisitions of troubled banks involving Federal Deposit Insurance Corporation (FDIC) financial assistance. Requires the appropriate Federal banking agency to notify and consult with the FDIC about pending action, and notify the FDIC of final action, with respect to any proposed acquisition by an out-of-State bank or holding company of an insured bank in danger of closing that may qualify for interstate acquisition. Authorizes the FDIC to arrange the acquisition of a closed bank which was one of the ten largest insured banks in the State. Directs the FDIC to provide the State bank supervisor with all relevant information concerning all out-of-State banks or holding companies making acquisition offers. Authorizes interstate acquisitions of: (1) an insured bank in danger of closing which has total assets of $500,000,000 or is one of the ten largest insured banks in the State; or (2) two or more affiliated banks in danger of closing if the aggregate total assets of such banks exceed $500,000,000 and equal or exceed 33 percent of the aggregate total assets of all affiliated insured banks, as well as any other affiliated bank or the controlling holding company. Continues existing acquisition eligibility of an insured bank which receives FDIC assistance after April 15, 1986, until no assistance remains outstanding. Authorizes any out-of-State bank which makes an emergency acquisition of an insured bank in any State to acquire other insured banks in such State to the same extent as authorized for any bank holding company whose insured bank subsidiaries' operations are principally conducted in such State. Prohibits any holding company which makes such an acquisition from being required under State law to divest any other bank or from being prevented from acquiring any other bank or holding company by reason of such acquisition. Requires the FDIC to submit an annual report to specified congressional committees on such emergency interstate acquisitions. Amends the Bank Holding Company Act of 1956 to impose similar restrictions on emergency interstate acquisitions of troubled banks not assisted by the FDIC. Authorizes the Federal Reserve Board to: (1) dispense with notice and hearing requirements for the acquisition of a bank in danger of closing; and (2) reduce the post-approval waiting period to five days or eliminate such period if necessary to prevent the probable failure of the bank. Directs the Board to submit an annual report to specified congressional committees on applications for such emergency acquisitions. Amends the Garn-St Germain Depository Institutions Act of 1982 to extend until July 15, 1989, the Deposit Insurance Flexibility Act. Terminates this title and the Deposit Insurance Flexibility Act effective July 15, 1989.

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1 official file

• Introduced in House

  summary · EN · 6 January 1987

  Open at official source

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