To amend the Federal Deposit Insurance Act to prevent misrepresentation about deposit insurance coverage, and for other purposes.

Summary: FDIC Enforcement Enhancement Act - Amends the Federal Deposit Insurance Act (FDIA) to prohibit use of the terms "Federal Deposit," "Federal Deposit Insurance," "Federal Deposit Insurance Corporation," any combination of such terms, or the abbreviation "FDIC," as part of the business name or firm name of any person or business entity, including any advertisement, solicitation, or other document.

Prohibits use of such terms, or any other sign or symbol as part of a document, to represent, suggest, or imply that any deposit liability, obligation, certificate, or share is insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) if in fact the instrument is not insured or guaranteed by the FDIC.

Prohibits knowing misrepresentations of: (1) the federally insured status of any deposit liability, obligation, certificate, or share; or (2) the extent or the manner in which such instruments are insured by the FDIC.

Grants the FDIC jurisdiction over any person that violates this Act, and certain enforcement authority as if the person were a state nonmember insured bank.

Empowers the FDIC to issue orders requiring: (1) immediate cessation; and (2) affirmative action to prevent any further violation, or to remedy an existing one.

Subjects violations of this Act to civil money penalties.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FDIC Enforcement Enhancement Act''.

SEC. 2. ENFORCEMENT AGAINST MISREPRESENTATIONS REGARDING FDIC DEPOSIT 
              INSURANCE COVERAGE.

    (a) In General.--Section 18(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(a)) is amended by adding at the end the following new 
paragraph:
            ``(4) False advertising, misuse of fdic names, and 
        misrepresentation to indicate insured status.--
                    ``(A) Prohibition on false advertising and misuse 
                of fdic names.--No person may--
                            ``(i) use the terms `Federal Deposit', 
                        `Federal Deposit Insurance', `Federal Deposit 
                        Insurance Corporation', any combination of such 
                        terms, or the abbreviation `FDIC' as part of 
                        the business name or firm name of any person, 
                        including any corporation, partnership, 
                        business trust, association, or other business 
                        entity; or
                            ``(ii) use such terms or any other sign or 
                        symbol as part of an advertisement, 
                        solicitation, or other document,
                to represent, suggest or imply that any deposit 
                liability, obligation, certificate or share is insured 
                or guaranteed by the Federal Deposit Insurance 
                Corporation, if such deposit liability, obligation, 
                certificate, or share is not insured or guaranteed by 
                the Corporation.
                    ``(B) Prohibition on misrepresentations of insured 
                status.--No person may knowingly misrepresent--
                            ``(i) that any deposit liability, 
                        obligation, certificate, or share is federally 
                        insured, if such deposit liability, obligation, 
                        certificate, or share is not insured by the 
                        Corporation; or
                            ``(ii) the extent to which or the manner in 
                        which any deposit liability, obligation, 
                        certificate, or share is insured by the Federal 
                        Deposit Insurance Corporation, if such deposit 
                        liability, obligation, certificate, or share is 
                        not insured by the Corporation to the extent or 
                        in the manner represented.
                    ``(C) Authority of fdic.--The Corporation shall 
                have--
                            ``(i) jurisdiction over any person that 
                        violates this paragraph, or aids or abets the 
                        violation of this paragraph; and
                            ``(ii) for purposes of enforcing the 
                        requirements of this paragraph with regard to 
                        any person--
                                    ``(I) the authority of the 
                                Corporation under section 10(c) to 
                                conduct investigations; and
                                    ``(II) the enforcement authority of 
                                the Corporation under subsections (b), 
                                (c), (d) and (i) of section 8,
                as if such person were a state nonmember insured bank.
                    ``(D) Other actions preserved.--No provision of 
                this paragraph shall be construed as barring any action 
                otherwise available, under the laws of the United 
                States or any State, to any Federal or State law 
                enforcement agency or individual.''.
    (b) Enforcement Orders.--Section 8(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(c)) is amended by adding at the end the 
following new paragraph:
            ``(4) False advertising or misuse of names to indicate 
        insured status.--
                    ``(A) Temporary order.--
                            ``(i) In general.--If a notice of charges 
                        served under subsection (b)(1) of this section 
                        specifies on the basis of particular facts that 
                        any person is engaged in conduct described in 
                        section 18(a)(4), the Corporation may issue a 
                        temporary order requiring--
                                    ``(I) the immediate cessation of 
                                any activity or practice described, 
                                which gave rise to the notice of 
                                charges; and
                                    ``(II) affirmative action to 
                                prevent any further, or to remedy any 
                                existing, violation.
                            ``(ii) Effect of order.--Any temporary 
                        order issued under this subparagraph shall take 
                        effect upon service.
                    ``(B) Effective period of temporary order.--A 
                temporary order issued under subparagraph (A) shall 
                remain effective and enforceable, pending the 
                completion of an administrative proceeding pursuant to 
                subsection (b)(1) in connection with the notice of 
                charges--
                            ``(i) until such time as the Corporation 
                        shall dismiss the charges specified in such 
                        notice; or
                            ``(ii) if a cease-and-desist order is 
                        issued against such person, until the effective 
                        date of such order.
                    ``(C) Civil money penalties.--Violations of section 
                18(a)(4) shall be subject to civil money penalties as 
                set forth in subsection (i) in an amount not to exceed 
                $1,000,000 for each day during which the violation 
                occurs or continues.''.
    (c) Technical and Conforming Amendments.--
            (1) Section 18(a)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1828(a)) is amended--
                    (A) by striking ``this subsection'' the first place 
                such term appears and inserting ``paragraph (1)''; and
                    (B) by striking ``this subsection'' the second 
                place such term appears and inserting ``paragraph 
                (2)''.
            (2) The heading for subsection (a) of section 18 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1828(a)) is amended by 
        striking ``Insurance Logo.--'' and inserting ``Representations 
        of Deposit Insurance.--''.

            Passed the House of Representatives July 16, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.