[Congressional Record Volume 153, Number 113 (Monday, July 16, 2007)]
[House]
[Pages H7788-H7789]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    FDIC ENFORCEMENT ENHANCEMENT ACT

  Mr. SIRES. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 2547) to amend the Federal Deposit Insurance Act to prevent 
misrepresentation about deposit insurance coverage, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2547

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``FDIC Enforcement Enhancement 
     Act''.

     SEC. 2. 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.--''.


[[Page H7789]]


  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Sires) and the gentlewoman from Illinois (Mrs. Biggert) 
each will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey.


                             General Leave

  Mr. SIRES. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New Jersey?
  There was no objection.
  Mr. SIRES. Madam Speaker, I yield myself as much time as I may 
consume.
  First, I would like to thank Chairman Frank for moving this 
legislation through the committee and bringing it to the floor today.
  I would also like to thank Congresswoman Biggert for sponsoring this 
legislation with me. I was happy to have such a strong proponent of 
consumer protection join me in introducing this bill.
  We hear all types of stories about trademarks registered to a 
specific company being used inappropriately. In some cases, 
multimillion-dollar lawsuits are filed for copyright and patent 
infringement.
  We have the same thing going on with the FDIC. Their trusted logo is 
being used to deceive consumers, but they have no recourse.
  H.R. 2547 will allow the FDIC to levy cease and desist orders against 
any persons or entity that uses the FDIC's name, logo, abbreviation or 
any other FDIC-recognized indicator fraudulently and without the FDIC's 
permission. This legislation will also allow the FDIC to impose fines 
of up to $1 million per day against any person or entity engaging in 
falsely representing the FDIC's backing of a product.
  This is important consumer protection legislation that is necessary 
to preserve the trusted name of one of the most recognized Federal 
agencies. In fact, the FDIC believes this legislation is necessary to 
help them to continue to fight financial scams.
  I ask my colleagues to support H.R. 2547.
  Madam Speaker, I reserve the balance of my time.
  Mrs. BIGGERT. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I would like to, first of all, thank the gentleman 
from New Jersey (Mr. Sires) for his work on this bill, and I urge my 
colleagues to support H.R. 2547, the FDIC Enforcement Enhancement Act.
  In May I was pleased to join my colleague, Congressman Sires, in 
introducing this bill which gives the Federal Deposit Insurance 
Corporation new tools to protect our constituents from financial scam 
artists.
  After the great stock market crash in 1929 and the numerous bank 
closures during the Great Depression, Congress passed, in 1933, the 
Glass-Steagall Act, which created the FDIC. Congress created this 
independent Federal agency and charged it with a most important 
mission: To instill and maintain ``the stability and the public's 
confidence in the Nation's financial system.''
  For over 70 years, the FDIC has worked to meet its mission. The 
FDIC's name, seal, abbreviation, and other indicators are well known, 
and they are symbols that the public uses to identify a financial 
institution or a product as being legitimate, federally insured, sound, 
and supervised. These are easily identifiable FDIC symbols and they can 
be found in a range of places, from the bank teller's window to a 
financial institution's Web site.
  Unfortunately, over the years, criminals have taken advantage of the 
public's confidence in the FDIC name and used it for malicious 
purposes. Criminals have fraudulently used the FDIC's name to deceive 
consumers, most often the elderly, into saving or investing their money 
in a criminal's illegitimate product offered by a criminal's 
illegitimate financial institution.
  For example, some of you may have received or known individuals who 
have received e-mails from these scam artists. The e-mails, that are 
actually from criminals, claim to be from the FDIC and request that the 
e-mail recipient provide highly sensitive, on-line banking information. 
However, the e-mails are fraudulent and not from the FDIC.
  Current law prohibits this criminal activity, but H.R. 2547 
strengthens the FDIC's enforcement powers so that it can take immediate 
action against criminals that are fraudulently hiding behind the good 
name of the FDIC and to immediately stop such criminal activity so that 
the consumer's money doesn't disappear.
  The act allows the FDIC to enter cease and desist orders against this 
conduct and impose fines up to $1 million per day on any person who 
falsely represents the nature of the product offered or the FDIC's 
insurance coverage available. In addition, the proposed legislation 
would clarify the FDIC's authority to seek injunctive relief against 
such person under the rules of any Federal, State or foreign court of 
competent jurisdiction.
  The language of this act is similar or is identical to the act of 
2005, the Financial Service Regulatory Relief, section 615, which the 
Committee on Financial Services approved by a vote of 67-0 in November 
of 2005. The House has approved this bill by a voice vote.
  So I would urge my colleagues to again support the language and vote 
for today's bill. This bill gives the FDIC the ability to help prevent 
our constituents from becoming victims of financial scam artists and, 
like Glass-Steagall, aims to give our constituents confidence in the 
Nation's financial system.
  Madam Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. SIRES. Madam Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New Jersey (Mr. Sires) that the House suspend the rules 
and pass the bill, H.R. 2547, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. SIRES. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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