I 
110TH CONGRESS 
2D SESSION 
H. R. 7226 
To direct the Federal Deposit Insurance Corporation to create a ‘‘net worth 
certificate’’ program along the lines of what Congress enacted in the 
1980s for the savings and loan industry. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2008 
Mr. SHADEGG (for himself, Mr. KINGSTON, Mr. ROSKAM, Mr. DEAL of Geor-
gia, Mr. FORTENBERRY, Mr. GINGREY, Mr. WESTMORELAND, Mrs. 
BACHMANN, Mr. SALI, Mr. WELDON of Florida, Mr. GOHMERT, Ms. 
FOXX, Mrs. DRAKE, Mr. GARRETT of New Jersey, Mr. SESSIONS, Mr. 
PEARCE, Mr. AKIN, Mr. HOEKSTRA, Mr. ROGERS of Michigan, Mr. BAR-
RETT of South Carolina, Mr. FLAKE, Mrs. BLACKBURN, Mr. BRADY of 
Texas, Mr. CARTER, Mr. MCCAUL of Texas, Mr. TIBERI, Ms. GINNY 
BROWN-WAITE of Florida, Mr. SAM JOHNSON of Texas, Mr. KING of 
Iowa, Mr. MANZULLO, Mr. SENSENBRENNER, Mr. FEENEY, Mrs. 
BIGGERT, and Mr. DOOLITTLE) introduced the following bill; which was 
referred to the Committee on Financial Services 
A BILL 
To direct the Federal Deposit Insurance Corporation to cre-
ate a ‘‘net worth certificate’’ program along the lines 
of what Congress enacted in the 1980s for the savings 
and loan industry. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Net Worth Certificate 
Program Act of 2008’’. 
SEC. 2. SPECIFICATION OF CONSTITUTIONAL AUTHORITY 
FOR ENACTMENT OF LAW. 
This Act is enacted pursuant to power granted Con-
gress under article 1, section 8, clause 3 of the United 
States Constitution. 
SEC. 3. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds the following: 
(1) The Federal Deposit Insurance Corporation 
enacted a similar program in the 1980s; 
(2) That program, in the 1980s, resolved a 
$100 billion insolvency in the savings banks for a 
total cost of less than $2 billion; 
(3) Such a program will bolster the capital posi-
tion of banks with real estate holdings; 
(4) Such a program will give banks the ability 
to sell and restructure assets and get on with their 
rehabilitation; and 
(5) This program would not require taxpayer 
money would be spent, and the asset sale trans-
actions would remain in the private sector where 
they belong. 
(b) PURPOSE.—The purpose of this Act is to: 
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(1) Create a program, managed by the Chair-
man of the Federal Deposit Insurance Corporation, 
to purchase net worth certificates in order to help 
banks with their capital position. 
SEC. 4. NET WORTH CERTIFICATE PROGRAM. 
The Chairman of the Federal Deposit Insurance Cor-
poration is directed to create a net worth certificate pro-
gram that will settle the financial markets without signifi-
cant expense to taxpayers. 
(1) The program created by the Chairman of 
the Federal Deposit Insurance Corporation will be 
authorized to purchase net worth certificates by 
issuing FDIC senior notes to the banks in the form 
of subordinated debentures, a commonly used form 
of capital in banks, or in any other form the Chair-
man determines meets the goals and requirements of 
this program; 
(2) For a bank to be eligible to participate in 
the program the Chairman must certify that it is 
both in danger of failing, and could be viable if they 
were given more time than they are eligible to par-
ticipate; 
(3) The Chairman is required to issue new, 
strict supervision rules for banks that wish to enter 
the program and the banks must document their 
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agreement to comply with the new rules. These new 
oversight rules must also include, but are not to be 
limited to, oversight of compensation of top execu-
tives and removal of poor management. 
Æ 
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