[Congressional Record Volume 157, Number 115 (Thursday, July 28, 2011)]
[Extensions of Remarks]
[Page E1437]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           IMPACT OF INSURED DEPOSITORY INSTITUTION FAILURES

                                 ______
                                 

                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Tuesday, July 26, 2011

  Mrs. MALONEY. Mr. Speaker, I rise today in support of H.R. 2056 
offered by my colleagues on the Financial Services Committee, Rep. Lynn 
Westmoreland and Rep. David Scott. I am proud to be a cosponsor of this 
legislation which requires the FDIC Inspector General to conduct a 
comprehensive study of issues raised by persistent failures of U.S. 
banks. These issues include appraisals, capital, loss share agreements 
and other issues that arise when a bank becomes vulnerable to closure.
  I have heard from banks in my district that have been working with 
the FDIC to recapitalize and restructure their institutions so they can 
avoid being closed. They argue that the FDIC offers them little 
flexibility or time to raise the capital they need or make the changes 
they need to satisfy the FDIC. I hope the study this bill authorizes 
will examine these procedures and bring to light any procedural changes 
that the FDIC can implement to address these concerns.
  H.R. 2056 was amended in committee to reflect some additional factors 
that the FDIC thought were important to include in the study's 
parameters. I urge my colleagues to support this important bill.