453 
(2) implementing increases in deposit insurance 
coverage in accordance with the amendments made 
by section 4003 of this subtitle; 
(3) implementing the dividend requirement 
under section 7(e)(2) of the Federal Deposit Insur-
ance Act (as amended by section 4007 of this sub-
title); 
(4) implementing the 1-time assessment credit 
to certain insured depository institutions in accord-
ance with section 7(e)(3) of the Federal Deposit In-
surance Act, as amended by section 4007 of this 
subtitle, including the qualifications and procedures 
under which the Corporation would apply assess-
ment credits; and 
(5) providing for assessments under section 
7(b) of the Federal Deposit Insurance Act, as 
amended by this subtitle. 
(b) RULE OF CONSTRUCTION.—No provision of this 
subtitle or any amendment made by this subtitle shall be 
construed as affecting the authority of the Corporation to 
set or collect deposit insurance assessments before the ef-
fective date of the final regulations prescribed under sub-
section (a).
454 
SEC. 4010. STUDIES OF FDIC STRUCTURE AND EXPENSES 
AND CERTAIN ACTIVITIES AND FURTHER 
POSSIBLE CHANGES TO DEPOSIT INSURANCE 
SYSTEM. 
(a) STUDY BY COMPTROLLER GENERAL.— 
(1) STUDY REQUIRED.—The Comptroller Gen-
eral shall conduct a study of the following issues: 
(A) The efficiency and effectiveness of the 
administration of the prompt corrective action 
program under section 38 of the Federal De-
posit Insurance Act by the Federal banking 
agencies (as defined in section 3 of such Act), 
including the degree of effectiveness of such 
agencies in identifying troubled depository insti-
tutions and taking effective action with respect 
to such institutions, and the degree of accuracy 
of the risk assessments made by the Corpora-
tion. 
(B) The appropriateness of the organiza-
tional structure of the Federal Deposit Insur-
ance Corporation for the mission of the Cor-
poration taking into account— 
(i) the current size and complexity of 
the business of insured depository institu-
tions (as such term is defined in section 3 
of the Federal Deposit Insurance Act);
455 
(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-
456 
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.
457 
(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—
458 
(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
459 
enactment of this Act, containing the findings and 
conclusions of the Corporation with respect to the 
study required under paragraph (1), together with 
such recommendations for legislative or administra-
tive action as the Board of Directors may determine 
to be appropriate. Before submitting the report to 
Congress, the Board of Directors shall provide a 
draft of the report to the Comptroller General for 
comment. 
SEC. 4011. BI-ANNUAL FDIC SURVEY AND REPORT ON IN-
CREASING THE DEPOSIT BASE BY ENCOUR-
AGING USE OF DEPOSITORY INSTITUTIONS 
BY THE UNBANKED. 
The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended by adding at the end the following 
new section: 
‘‘SEC. 49. BI-ANNUAL FDIC SURVEY AND REPORT ON EN-
COURAGING USE OF DEPOSITORY INSTITU-
TIONS BY THE UNBANKED. 
‘‘(a) SURVEY REQUIRED.— 
‘‘(1) IN GENERAL.—The Corporation shall con-
duct a bi-annual survey on efforts by insured deposi-
tory institutions to bring those individuals and fami-
lies who have rarely, if ever, held a checking ac-
count, a savings account or other type of transaction
460 
or check cashing account at an insured depository 
institution (hereafter in this section referred to as 
the ‘unbanked’) into the conventional finance sys-
tem. 
‘‘(2) FACTORS
AND
QUESTIONS
TO
CON-
SIDER.—In conducting the survey, the Corporation 
shall take the following factors and questions into 
account: 
‘‘(A) To what extent do insured depository 
institutions promote financial education and fi-
nancial literacy outreach? 
‘‘(B) Which financial education efforts ap-
pear to be the most effective in bringing 
‘unbanked’ individuals and families into the 
conventional finance system? 
‘‘(C) What efforts are insured institutions 
making at converting ‘unbanked’ money order, 
wire transfer, and international remittance cus-
tomers into conventional account holders? 
‘‘(D) What cultural, language and identi-
fication issues as well as transaction costs ap-
pear to most prevent ‘unbanked’ individuals 
from establishing conventional accounts?
461 
‘‘(E) What is a fair estimate of the size 
and worth of the ‘unbanked’ market in the 
United States? 
‘‘(b) REPORTS.—The Chairperson of the Board of 
Directors shall submit a bi-annual report to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing the Corporation’s findings 
and conclusions with respect to the survey conducted pur-
suant to subsection (a), together with such recommenda-
tions for legislative or administrative action as the Chair-
person may determine to be appropriate.’’. 
SEC. 4012. TECHNICAL AND CONFORMING AMENDMENTS 
TO THE FEDERAL DEPOSIT INSURANCE ACT 
RELATING TO THE MERGER OF THE BIF AND 
SAIF. 
(a) IN GENERAL.—The Federal Deposit Insurance 
Act (12 U.S.C. 1811 et seq.) is amended— 
(1) in section 3 (12 U.S.C. 1813)— 
(A) by striking subparagraph (B) of sub-
section (a)(1) and inserting the following new 
subparagraph: 
‘‘(B) includes any former savings associa-
tion.’’; and
462 
(B) by striking paragraph (1) of sub-
section (y) (as so designated by section 4005(b) 
of this subtitle) and inserting the following new 
paragraph: 
‘‘(1) DEPOSIT
INSURANCE
FUND.—The term 
‘Deposit Insurance Fund’ means the Deposit Insur-
ance Fund established under section 11(a)(4).’’; 
(2) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), 
by striking ‘‘the Bank Insurance Fund or the Sav-
ings Association Insurance Fund,’’ and inserting 
‘‘the Deposit Insurance Fund,’’; 
(3) in section 5(c)(4), by striking ‘‘deposit in-
surance fund’’ and inserting ‘‘Deposit Insurance 
Fund’’; 
(4) in section 5(d) (12 U.S.C. 1815(d)), by 
striking paragraphs (2) and (3) (and any funds re-
sulting from the application of such paragraph (2) 
prior to its repeal shall be deposited into the general 
fund of the Deposit Insurance Fund); 
(5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))— 
(A) in subparagraph (A), by striking ‘‘re-
serve ratios in the Bank Insurance Fund and 
the Savings Association Insurance Fund as re-
quired by section 7’’ and inserting ‘‘the reserve 
ratio of the Deposit Insurance Fund’’;
463 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(2) FEE CREDITED TO THE DEPOSIT INSUR-
ANCE FUND.—The fee paid by the depository insti-
tution under paragraph (1) shall be credited to the 
Deposit Insurance Fund.’’; 
(C) by striking ‘‘(1) UNINSURED INSTI-
TUTIONS.—’’; and 
(D) by redesignating subparagraphs (A) 
and (C) as paragraphs (1) and (3), respectively, 
and moving the left margins 2 ems to the left; 
(6) in section 5(e) (12 U.S.C. 1815(e))— 
(A) in paragraph (5)(A), by striking 
‘‘Bank Insurance Fund or the Savings Associa-
tion Insurance Fund’’ and inserting ‘‘Deposit 
Insurance Fund’’; 
(B) by striking paragraph (6); and 
(C) by redesignating paragraphs (7), (8), 
and (9) as paragraphs (6), (7), and (8), respec-
tively; 
(7) in section 6(5) (12 U.S.C. 1816(5)), by 
striking ‘‘Bank Insurance Fund or the Savings As-
sociation Insurance Fund’’ and inserting ‘‘Deposit 
Insurance Fund’’; 
(8) in section 7(b) (12 U.S.C. 1817(b))—