FDIC BACK-UP ENFORCEMENT AUTHORITY.

SEC. 307. FDIC BACK-UP ENFORCEMENT AUTHORITY. Section 8(t) of the Federal Deposit Insurance Act (12 U.S.C. 1818(t)) is amended to read as follows: “(t) Authority of FDIC To Take Enforcement Action Against Insured Depository Institutions and Institution-Affiliated Parties.— “(1) Recommending action by appropriate federal banking agency.— The Corporation, based on an examination of an insured depository institution by the Corporation or by the appropriate Federal banking agency or on other information, may recommend in writing to the appropriate Federal banking agency that the agency take any enforcement action authorized under section 7(j), this section, or section 18(j) with respect to any insured depository institution or any institution-affiliated party. The recommendation shall be accompanied by a written explanation of the concerns giving rise to the recommendation. 105 STAT. 2361 “(2) FDIC’s authority to act if appropriate federal banking agency fails to follow recommendation.— If the appropriate Federal banking agency does not, before the end of the 6(May period beginning on the date on which the agency receives the recommendation under paragraph (1), take the enforcement action recommended by the Corporation or provide a plan acceptable to the Corporation for responding to the Corporation’s concerns, the Corporation may take the recommended enforcement action if the Board of Directors determines, upon a vote of its members, that— “(A) the insured depository institution is in an unsafe or unsound condition; “(B) the institution is engaging in unsafe or unsound practices, and the recommended enforcement action will prevent the institution from continuing such practices; or “(C) the institution’s conduct or threatened conduct (including any acts or omissions) poses a risk to the deposit insurance fund, or may prejudice the interests of the institution’s depositors. “(3) Effect of exigent circumstances.— “(A) Authority to act.— The Corporation may, upon a vote of the Board of Directors, and after notice to the appropriate Federal banking agency, exercise its authority under paragraph (2) in exigent circumstances without regard to the time period set forth in paragraph (2). “(B) Agreement on exigent circumstances.— The Corporation shall, by agreement with the appropriate Federal banking agency, set forth those exigent circumstances in which the Corporation may act under subparagraph (A). “(4) Corporation’s powers; institution’s duties.— For purposes of this subsection— “(A) the Corporation shall have the same powers with respect to any insured depository institution and its affiliates as the appropriate Federal banking agency has with respect to the institution and its affiliates; and “(B) the institution and its affiliates shall have the same duties and obligations with respect to the Corporation as the institution and its affiliates have with respect to the appropriate Federal banking agency. “(5) Requests for formal actions and investigations.— “(A) Submission of requests.— A regional office of an appropriate Federal banking agency (including a Federal Reserve bank) that requests a formal investigation of or civil enforcement action against an insured depository institution shall submit the request concurrently to the chief officer of the appropriate Federal banking agency and to the Corporation. “(B) Agencies required to report on requests.— Each appropriate Federal banking agency shall report semiannually to the Corporation on the status or disposition of all requests under subparagraph (A), including the reasons for any decision by the agency to approve or deny such requests.”.