HR 1185 RFS 
(ii) the extent to which the organiza-
tional structure contributes to or reduces 
operational 
inefficiencies 
that 
increase 
operational costs; and 
(iii) the effectiveness of internal con-
trols. 
(2) REPORT TO THE CONGRESS.—The Comp-
troller General shall submit a report to the Congress 
before the end of the 1-year period beginning on the 
date of the enactment of this Act containing the 
findings and conclusions of the Comptroller General 
with respect to the study required under paragraph 
(1) together with such recommendations for legisla-
tive or administrative action as the Comptroller Gen-
eral may determine to be appropriate. 
(b) STUDY OF FURTHER POSSIBLE CHANGES TO DE-
POSIT INSURANCE SYSTEM.— 
(1) STUDY REQUIRED.—The Board of Directors 
of the Federal Deposit Insurance Corporation and 
the National Credit Union Administration Board 
shall each conduct a study of the following: 
(A) The feasibility of establishing a vol-
untary deposit insurance system for deposits in 
excess of the maximum amount of deposit in-
surance for any depositor and the potential ben-
HR 1185 RFS 
efits and the potential adverse consequences 
that may result from the establishment of any 
such system. 
(B) The feasibility of privatizing all deposit 
insurance at insured depository institutions and 
insured credit unions. 
(2) REPORT.—Before the end of the 1-year pe-
riod beginning on the date of the enactment of this 
Act, the Board of Directors of the Federal Deposit 
Insurance Corporation and the National Credit 
Union Administration Board shall each submit a re-
port to the Congress on the study required under 
paragraph (1) containing the findings and conclu-
sions of the reporting agency together with such rec-
ommendations for legislative or administrative 
changes as the agency may determine to be appro-
priate. 
(c) STUDY REGARDING APPROPRIATE DEPOSIT BASE 
IN DESIGNATING RESERVE RATIO.— 
(1) STUDY
REQUIRED.—The Federal Deposit 
Insurance Corporation shall conduct a study of the 
feasibility of using actual domestic deposits rather 
than estimated insured deposits in calculating the 
reserve ratio of the Deposit Insurance Fund and 
designating a reserve ratio for such Fund.
HR 1185 RFS 
(2) REPORT.—The Federal Deposit Insurance 
Corporation shall submit a report to the Congress 
before the end of the 1-year period beginning on the 
date of the enactment of this Act containing the 
findings and conclusions of the Corporation with re-
spect to the study required under paragraph (1) to-
gether with such recommendations for legislative or 
administrative action as the Board of Directors of 
the Corporation may determine to be appropriate. 
(d) STUDY OF RESERVE METHODOLOGY AND AC-
COUNTING FOR LOSS.— 
(1) STUDY
REQUIRED.—The Federal Deposit 
Insurance Corporation shall conduct a study of the 
reserve methodology and loss accounting used by the 
Corporation during the period beginning on January 
1, 1992, and ending December 31, 2004, with re-
spect to insured depository institutions in a troubled 
condition (as defined in the regulations prescribed 
pursuant to section 32(f) of the Federal Deposit In-
surance Act). The Corporation shall obtain com-
ments on the design of the study from the Comp-
troller General. 
(2) FACTORS TO BE INCLUDED.—In conducting 
the study pursuant to paragraph (1), the Federal 
Deposit Insurance Corporation shall—
HR 1185 RFS 
(A) consider the overall effectiveness and 
accuracy of the methodology used by the Cor-
poration for establishing and maintaining re-
serves and estimating and accounting for losses 
at insured depository institutions, during the 
period described in such paragraph; 
(B) consider the appropriateness and reli-
ability of information and criteria used by the 
Corporation in determining— 
(i) whether an insured depository in-
stitution was in a troubled condition; and 
(ii) the amount of any loss anticipated 
at such institution; 
(C) analyze the actual historical loss expe-
rience over the period described in paragraph 
(1) and the causes of the exceptionally high 
rate of losses experienced by the Corporation in 
the final 3 years of that period; and 
(D) rate the efforts of the Corporation to 
reduce losses in such 3-year period to minimally 
acceptable levels and to historical levels. 
(3) REPORT REQUIRED.—The Board of Direc-
tors of the Federal Deposit Insurance Corporation 
shall submit a report to the Congress before the end 
of the 6-month period beginning on the date of the