I 

111TH CONGRESS 

1ST SESSION H. R. 2657 

To amend the Federal Deposit Insurance Act to limit the authority of the 

Federal Deposit Insurance Corporation to engage in activities relating 

to systemic risk without a congressional declaration of a financial emergency, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 2, 2009 

Mr. CAPUANO introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Federal Deposit Insurance Act to limit the 

authority of the Federal Deposit Insurance Corporation 

to engage in activities relating to systemic risk without 

a congressional declaration of a financial emergency, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Depositor Protection 

5 Act of 2009’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds as follows: 


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1 (1) The Federal Deposit Insurance Corporation 

2 was established in 1933 with the explicit authority 

3 and mission to insure and guarantee the deposits of 

4 all its member banks and, since 1989, savings asso5 ciations. 

6 (2) The Public-Private Investment Program for 

7 Legacy Assets was established by the Secretary of 

8 the Treasury, in conjunction with the Board of Gov9 ernors of the Federal Reserve System and the Fed10 eral Deposit Insurance Corporation. 

11 (3) As it is not the mission of the Public-Pri12 vate Investment Program for Legacy Assets to pro13 tect the deposits of the insured depository institu14 tions that are insured by the Federal Deposit Insur15 ance Corporation, such Corporation has no purpose 

16 for participating in the Program. 

17 SEC. 3. CLARIFICATION THAT OPEN INSTITUTION ASSIST18 ANCE ON THE BASIS OF SYSTEM RISK RE19 QUIRES A CONGRESSIONAL DECLARATION 

20 OF A FINANCIAL EMERGENCY. 

21 (a) IN GENERAL.—Subparagraph (C) of section 

22 13(c)(1) of the Federal Deposit Insurance Act (12 U.S.C. 

23 1823(c)(1)(C)) is amended by inserting ‘‘an Act of Con24 gress has declared (for the specific exercise of authority 

25 by the Corporation under this subparagraph) that, for a 


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1 period (or after a date) specified in such Act,’’ after ‘‘if, 

2 when’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall apply as of the date of the enactment 

5 of this Act to any exercise of any authority by the Federal 

6 Deposit Insurance Corporation under section 13(c)(1)(C) 

7 of the Federal Deposit Insurance Act regardless of any 

8 action taken by the Corporation before such date but shall 

9 not require the Corporation to dispose of any asset ac10 quired under such provision of law before such date. 

11 SEC. 4. CLARIFICATION OF LIMITATION ON LINE OF CRED12 IT. 

13 The authority under section 14(a) of the Federal De14 posit Insurance Act for the Federal Deposit Insurance 

15 Corporation to borrow from the Treasury amounts ‘‘re16 quired for insurance purposes’’ shall not be construed as 

17 authorizing the Corporation to borrow from the Treasury 

18 any amount for purposes of funding any action taken by 

19 the Corporation under section 13(c)(1)(C) of such Act. 

Æ 


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