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.—.