I 111th CONGRESS 1st Session H. R. 2657 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.

Short title

This Act may be cited as the Depositor Protection Act of 2009.

2.

Findings

The Congress finds as follows: (1)The Federal Deposit Insurance Corporation was established in 1933 with the explicit authority and mission to insure and guarantee the deposits of all its member banks and, since 1989, savings associations. (2)The Public-Private Investment Program for Legacy Assets was established by the Secretary of the Treasury, in conjunction with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation. (3)As it is not the mission of the Public-Private Investment Program for Legacy Assets to protect the deposits of the insured depository institutions that are insured by the Federal Deposit Insurance Corporation, such Corporation has no purpose for participating in the Program.

3.

Clarification that open institution assistance on the basis of system risk requires a congressional declaration of a financial emergency

(a)

In general

Subparagraph (C) of section 13(c)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(1)(C)) is amended by inserting an Act of Congress has declared (for the specific exercise of authority by the Corporation under this subparagraph) that, for a period (or after a date) specified in such Act, after if, when. (b)

Effective date

The amendment made by subsection (a) shall apply as of the date of the enactment of this Act to any exercise of any authority by the Federal Deposit Insurance Corporation under section 13(c)(1)(C) of the Federal Deposit Insurance Act regardless of any action taken by the Corporation before such date but shall not require the Corporation to dispose of any asset acquired under such provision of law before such date.

4.

Clarification of limitation on line of credit

The authority under section 14(a) of the Federal Deposit Insurance Act for the Federal Deposit Insurance Corporation to borrow from the Treasury amounts required for insurance purposes shall not be construed as authorizing the Corporation to borrow from the Treasury any amount for purposes of funding any action taken by the Corporation under section 13(c)(1)(C) of such Act.