Page:United States Statutes at Large Volume 103 Part 1.djvu/535

 PUBLIC LAW 101-73-AUG. 9, 1989 103 STAT. 507 TITLE X—STUDIES OF FEDERAL DEPOSIT 12 USC i8ii INSURANCE, BANKING SERVICES, AND THE SAFETY AND SOUNDNESS OF GOV- ERNMENT-SPONSORED ENTERPRISES 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 Insur- ance 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 pre- mium 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 grad- uated 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 obliga- tions owed to federally insured depository institutions; and (C) requiring borrowers from federally insured depository institutions to post a personal or corporate bond when obt£dning a mortgage on real property. note.

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