Amends the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union Act (FCUA) to redefine the standard maximum deposit insurance amount and the standard maximum share insurance amount as being $250,000, respectively (thus making such increase permanent).
Amends the FDIA to: (1) extend from five years to eight years the period during which the restoration plan for the Deposit Insurance Fund (DIF) must rebuild its statutory reserve ratio; (2) increase to $100 billion the borrowing authority of the Federal Deposit Insurance Corporation (FDIC); and (3) authorize the FDIC to impose special assessments upon depository institution holding companies to recover losses to the DIF.
Amends the FCUA to: (1) increase to $6 billion the borrowing authority of the National Credit Union Administration (NCUA); and (2) require the NCUA Board to establish a Share Insurance Fund (SIF) restoration plan whenever the Board projects that the SIF equity ratio will fall below, or the SIF equity ratio actually does fall below, the required minimum amount. Sets forth restoration plan requirements.
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 786 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 786
To make permanent the temporary increase in deposit insurance coverage,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 2, 2009
Mr. Frank of Massachusetts introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To make permanent the temporary increase in deposit insurance coverage,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PERMANENT INCREASE IN DEPOSIT INSURANCE.
(a) Amendments to Federal Deposit Insurance Act.--Effective upon
the date of the enactment of this Act, section 11(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
(1) in paragraph (1)(E), by striking ``$100,000'' and
inserting ``$250,000'';
(2) in paragraph (1)(F)(i), by striking ``2010'' and
inserting ``2015'';
(3) in subclause (I) of paragraph (1)(F)(i), by striking
``$100,000'' and inserting ``$250,000'';
(4) in subclause (II) of paragraph (1)(F)(i), by striking
``the calendar year preceding the date this subparagraph takes
effect under the Federal Deposit Insurance Reform Act of 2005''
and inserting ``calendar year 2008''; and
(5) in paragraph (3)(A)(iii), by striking ``, except that
$250,000 shall be substituted for $100,000 wherever such term
appears in such paragraph''.
(b) Amendment to Federal Credit Union Act.--Section 207(k) of the
Federal Credit Union Act (12 U.S.C. 1787(k)) is amended--
(1) in paragraph (3)--
(A) by striking the opening quotation mark before
``$250,000'';
(B) by striking ``, except that $250,000 shall be
substituted for $100,000 wherever such term appears in
such section''; and
(C) by striking the closing quotation mark after
the closing parenthesis; and
(2) in paragraph (5), by striking ``$100,000'' and
inserting ``$250,000''.
(c) Rule of Construction.--No provision of law, other than a
provision of the Federal Deposit Insurance Act (with respect to the
Federal Deposit Insurance Corporation and insured depository
institutions) or the Federal Credit Union Act (with respect to the
National Credit Union Administration and insured credit unions), may be
construed as limiting the authority of--
(1) the Board of Directors of the Federal Deposit Insurance
Corporation to set assessments under section 7(b)(2) of the
Federal Deposit Insurance Act or to make any inflation
adjustment under section 11(a)(1)(F) of such Act; or
(2) the National Credit Union Administration Board to
periodically adjust the amount of an insured credit union's
deposit under section 202(c)(1) of the Federal Credit Union
Act, set the insurance premium charge under section 202(c)(2)
of such Act, or to make any inflation adjustment pursuant to
section 207(k)(5) of such Act.
SEC. 2. EXTENSION OF RESTORATION PLAN PERIOD.
Section 7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(3)(E)(ii)) is amended by striking ``5-year period'' and
inserting ``8-year period''.
SEC. 3. FDIC BORROWING AUTHORITY.
Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C.
1824(a)) is amended--
(1) by striking ``$30,000,000,000'' and inserting
``$100,000,000,000''; and
(2) by inserting prior to the last sentence, the following
new sentence: ``The Corporation may request in writing to
borrow, and the Secretary may authorize and approve the
borrowing of, additional amounts above $100,000,000,000 to the
extent that the Board of Directors and the Secretary determine
such borrowing to be necessary.''.
SEC. 4. EXPANDING SYSTEMIC RISK SPECIAL ASSESSMENTS.
Section 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)(4)(G)(ii)) is amended to read as follows:
``(ii) Repayment of loss.--
``(I) In general.--The Corporation
shall recover the loss to the Deposit
Insurance Fund arising from any action
taken or assistance provided with
respect to an insured depository
institution under clause (i) from 1 or
more special assessments on insured
depository institutions, depository
institution holding companies (with the
concurrence of the Secretary of the
Treasury with respect to holding
companies), or both, as the Corporation
determines to be appropriate.
``(II) Treatment of depository
institution holding companies.--For
purposes of this clause, sections
7(c)(2) and 18(h) shall apply to
depository institution holding
companies as if they were insured
depository institutions.
``(III) Regulations.--The
Corporation shall prescribe such
regulations as it deems necessary to
implement this clause. In prescribing
such regulations, defining terms, and
setting the appropriate assessment rate
or rates, the Corporation shall
establish rates sufficient to cover the
losses incurred as a result of the
actions of the Corporation under clause
(i) and shall consider: the types of
entities that benefit from any action
taken or assistance provided under this
subparagraph; economic conditions, the
effects on the industry, and such other
factors as the Corporation deems
appropriate and relevant to the action
taken or the assistance provided. Any
funds so collected that exceed actual
losses shall be placed in the Deposit
Insurance Fund.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 111-18.
Reported (Amended) by the Committee on Financial Services. H. Rept. 111-18.
Placed on the Union Calendar, Calendar No. 6.
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