Insolvency issues and the FDIC / Philip B. Williamson Jr., editor.

Format:

Book

Contributor:

Williamson, Philip B.

Series:

Financial institutions and services.

Financial institutions and services

Language:

English

Subjects (All):

Federal Deposit Insurance Corporation.

Deposit insurance--United States.

Deposit insurance.

Banks and banking--Government policy--United States.

Banks and banking.

Banks and banking--State supervision--United States.

Physical Description:

1 online resource (179 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

The Federal Deposit Insurance Corporation (FDIC) was established as an independent government corporation under the authority of the Banking Act of 1933, also known as the Glass-Steagall Act, to insure bank deposits. This book discusses recent actions taken by the FDIC in support of financial and housing markets, which include restoration of the Deposit Insurance Fund, the development of the Temporary Liquidity Guarantee Program, efforts to reduce foreclosures, and established of the proposed Public-Private Investment Fund. The Depositor Protection Act of 2009 has also been introduced to increase the effectiveness of the FDIC's efforts to respond to recent market weaknesses. Moreover, this book compares and contrasts the characteristics of depository institutions with SSFCs. A brief analysis of some important differences between the FDIC's conservatorship/receivership authority and that of the Bankruptcy Code is also given.

Contents:

Intro

INSOLVENCY ISSUES AND THE FDIC

CONTENTS

PREFACE

Chapter 1 A YEAR IN BANK SUPERVISION: 2008 AND A FEW OF ITS LESSONS

BANK SUPERVISION

The Prelude to the Events of 2008

A Selective 2008 Chronology

The First Quarter

2008: THE YEAR OF THE BANK HOLDING COMPANY

The Second Quarter

The Third Quarter

The Fourth Quarter

TROUBLED ASSET RELIEF PROGRAM CAPITAL PURCHASE PROGRAM

Areas of Bank Regulatory and Supervisory Focus Beyond 2008

Underwriting

Consumer Protection

Capital

Concentrated Risk

Liquidity

Public Stakeholders

Conclusion

REMOTE DEPOSIT CAPTURE: A PRIMER

Background

Managing RDC Risks

Operational Risks and Controls

Customer Screening

Monitoring and Reporting

Vendor Screening

Customer Audits

Business Continuity Planning

Change Control Processes

Insurance

Legal Risks and Controls

Compliance Risks and Controls

Future Prospects

FROM THE EXAMINER'S DESK: CHANGES TO REGULATION Z AFFORD INCREASED CONSUMER PROTECTIONS

New and Enhanced Protections for Consumers of Higher-Priced and High-Cost Mortgage Loans

New Protections for Consumers of Higher-Priced Mortgage Loans

Relying on the collateral securitizing the loan without regard to the consumer's ability to repay the loan

Relying on the consumer's income or assets without verifying such amounts through reasonably reliable third-party documents

COMPLIANCE PRACTITIONER NOTE

Imposing a prepayment penalty after two years or imposing a prepayment penalty at any time under certain circumstances65

Failing to escrow for property taxes and mortgage-related insurance when the mortgage loan is secured by a first lien

HIGHER-PRICED MORTGAGES AND HMDA

Enhanced Protections for Consumers of High-Cost Mortgage Loans.

Collateral-based Lending without Regard to Repayment Ability

Prepayment Penalties

IMPACT OF REGULATION Z'S HIGHER-PRICED AND HIGH-COST MORTGAGE AMENDMENTS ON NONTRADITIONAL AND SUBPRIME MORTGAGE GUIDANCE

Appraisal and Servicing Protections for Consumers of Mortgage Loans Secured by the Consumer's Principal Dwelling

Expanded and Enhanced Early Disclosure Requirements and New Prohibitions against Deceptive Advertising

Early Disclosures

Advertising

Effective Dates

OVERVIEW OF SELECTED REGULATIONS AND SUPERVISORY GUIDANCE

End Notes

Chapter 2 THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): EFFORTS TO SUPPORT FINANCIAL AND HOUSING MARKETS

SUMMARY

BRIEF OVERVIEW OF FDIC FUNCTIONS

Deposit Insurance

Resolution of Bank Failures

EFFORTS TO SUPPORT FINANCIAL AND HOUSING MARKETS15

Increase in Deposit Insurance

Support of the Deposit Insurance Fund

Temporary Liquidity Guarantee Program

Foreclosure Mitigation Efforts

APPENDIX. LARGEST FDIC BANK CLOSINGS, 2008

Public-Private Investment Fund (PPIF)/Legacy Loan Program

Chapter 3 FEDERAL DEPOSIT AND SHARE INSURANCE: PROPOSALS FOR CHANGE

WHAT IS DEPOSIT INSURANCE AND HOW IS IT ADMINISTERED?

ISSUES

POLICY CONSIDERATIONS

FDIC RECOMMENDATIONS AND CONGRESSIONAL ACTIVITY

2005

2006

2007

2008

2009

Chapter 4 FINANCIAL INSTITUTION INSOLVENCY: FEDERAL AUTHORITY OVER FANNIE MAE, FREDDIE MAC, AND DEPOSITORY INSTITUTIONS

OVERVIEW OF THE U.S. CREDIT CRUNCH AND ITS EFFECT ON FANNIE, FREDDIE, BANKS, AND THRIFTS

Introduction

Background on Fannie Mae and Freddie Mac

FDIC AND INSOLVENT BANKS AND THRIFTS

Appointment of a Conservator or Receiver over Banks and Thrifts

Generally.

Grounds for Appointing the FDIC as Conservator or Receiver over Banks and Thrifts

FDIC's Conservatorship or Receivership Powers

Overvie

FDIC's Rulemaking Powers of Conservatorships or Receiverships

FDIC's General and Incidental Powers as Conservator or Receiver

FDIC's Explicit Powers as Conservator or Receiver

Statutes of Limitations Available to Conservatorships or Receiverships of Banks or Thrifts

FDIC's Additional Conservatorship Powers

FDIC's Additional Receivership Powers

FDIC's Options for Resolving Bank and Thrift Insolvencies

Least-Cost Resolution Requirement

Cross-Guaranty and Holding Company Contribution Requirements

Deposit Payoff

Open Institution Assistance

Purchase and Assumptions (P&amp

As)

FDIC's Claims Process as Receiver

Overview

Payment of Claims and Priority of Claimants

Priorities

Agreements against the Interests of the FDIC

FANNIE MAE AND FREDDIE MAC

Before P.L. 110-289: OFHEO's Powers as Conservator

New Powers Granted by P.L. 110-289 to Deal with a Failing Fannie or Freddie

Notable Differences between the FDIC's Authority and that of the FHFA

Grounds for Appointing the FHFA as Conservator or Receiver

FHFA Conservatorship or Receivership Powers

FHFA's Rulemaking Powers as Conservator or Receiver

FHFA's General and Incidental Powers

FHFA's Explicit Powers as Conservator or Receiver

Statutes of Limitations Available to the FHFA as Conservator or Receiver

FHFA's Additional Conservatorship Powers

FHFA's Additional Receivership Powers

FHFA's Options for Resolving Insolvencies and the Inapplicability of the Least-Cost Requirement

Claims Process

Payment of Claims

FHFA Priority

Agreements against the Interests of the FHFA

End Notes.

Chapter 5 INSOLVENCIES OF "SYSTEMICALLY SIGNIFICANT FINANCIAL COMPANIES" (SSFCS): PROPOSAL FOR FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) RESOLUTION

BACKGROUND

TREASURY'S MARCH 25, 2009, PROPOSAL

What Types of Companies Does It Cover?

What Is a Systemic Risk Determination?

What Is "Default or Danger of Default"?

When Is the Systemic Risk Determination Made?

Who Makes the Systemic Risk Determination?

Who Recommends a Systemic Risk Determination?

What Must Be Included in the Recommendation for a Systematic Risk Determination?

What Is the Effect of a Systemic Risk Determination?

What Considerations Must the FDIC Weigh in Determining a Course of Action Once a Systemic Risk Determination Has Been Made?

What Actions May the FDIC Take?

What Rulemaking Authority is Provided under this Proposal?

What Are Some of the Effects of FDIC's Appointment as Receiver or Conservator?

Judicial Review and Effect on Other Litigation

General Resolution Powers

Merger Autority and Asset-Transfer Authority of Conservator or Receiver

Miscellaneous Powers

Incidental Powers

and Termination of Shareholders' Rights

Judicial Proceedings

FDIC Rights and Remedies

When Must Actions against FDIC as Conservator or Receiver Be Filed?

Fraudulent Transfers

Expedited Procedures for Appeals in Cases against Directors, etc.

What Standards Are Imposed Upon FDIC as Conservator or Receiver under this Proposal?

How Are Claims Determined?

What is the Maximum Liability to a Claimant?

Priority of Claimants

Contracts Entered Into before Appointment of Conservator or Receiver

Leases or Contracts for the Sale of Real Property and Service Contracts

How Are "Qualified Financial Contracts" Treated?

Authority to Enforce Contracts

Liability of Directors and Officers.

Bridge Financial Companies

Establishment and Duration

Stay of Judicial Action

What Corporate Law Applies to a Bridge Financial Company?

Agreements against the Interest of a Bridge Finance Company

Bridge Financial Companies: Not Federal Agencies and Are Tax-Exempt

Authority of Bridge Financial Company to Obtain Credit

Liquidation of Certain Stockbrokers or Commodity Brokers

Funding for FDIC,s Resolution Authority

CLARIFICATION OF CRIMINAL PROVISION REGARDING CONCEALING ASSETS FROM A CONSERVATOR, RECEIVER, OR LIQUIDATING AGENT

Miscellaneous Provisions

APPENDIX A. FORMS OF BANKING ORGANIZATIONS

APPENDIX B. ACTIVITIES CONSIDERED FINANCIAL IN NATURE UNDER SECTION 4(K)(4) OF THE BANK HOLDING COMPANY ACT, 12 U.S. /843(K)(4)

Activities That Are Financial in Nature

APPENDIX C. PERMISSIBLE NON-BANKING ACTIVITIES: 12 C.F.R. 225.28

List of Permissible Nonbanking Activities

APPENDIX D. ACTIVITIES PERMISSIBLE FOR FINANCIAL HOLDING COMPANIES UNDER /2 C.F.R. 225.86

Activities That Are Financial in Nature or Incidental to a Financial Activity

Chapter 6 INSOLVENCY OF SYSTEMICALLY SIGNIFICANT FINANCIAL COMPANIES: BANKRUPTCY VS. CONSERVATORSHIP/RECEIVERSHIP

INTRODUCTION

COMPARISON OF DEPOSITORY INSTITUTIONS AND SYSTEMICALLY SIGNIFICANT FINANCIAL INSTITUTIONS

DIFFERENCES BETWEEN THE FDIC'S CONSERVATORSHIP/RECEIVERSHIP POWERS AND THE BANKRUPTCY CODE

Overall Objectives of Each Regime

Insolvency Initiation Authority and Timing

Oversight Structure and Appeal

Management, Shareholder, and Creditor Rights

FDIC "SUPERPOWERS," INCLUDING CONTRACT REPUDIATION, VERSUS BANKRUPTCY,S AUTOMATIC STAY

Speed of Resolution

Chapter 7 CURRENT ISSUES IN DEPOSIT INSURANCE

CONDITION OF THE DEPOSIT INSURANCE FUND

BORROWING AUTHORITY.

IMPROVING THE SYSTEMIC RISK SPECIAL ASSESSMENT.

Notes:

Includes index.

Description based on print version record.

ISBN:

1-61209-903-3

OCLC:

701057089