STUDY AND REPORTS CONCERNING DIRECT INVESTMENTS.

SEC. 1203. STUDY AND REPORTS CONCERNING DIRECT INVESTMENTS. (a) Study Required.— The Federal Home Loan Bank Board shall conduct a study of the effect of direct investment activities on insured institutions, including comparative analyses of the effect of direct investment activities on— (1) different sized insured institutions; (2) State chartered insured institutions; (3) federally chartered insured institutions; and (4) insured institutions in each of the Supervisory Examinations Rating Classifications. (b) Report Required.— Not later than 18 months after the date of enactment of this Act, the Federal Home Loan Bank Board shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Hous-101 STAT. 662ing, and Urban Affairs of the Senate, a report containing the findings and conclusions of the Board with respect to the study required under subsection (a), including— (1) the findings and conclusions of the Board concerning the losses to the insurance fund and the degree to which such losses were the result of direct investment activities with respect to each of the classes of institutions described in subsection (a); and (2) a comparison of the effects of direct investment activities prior to April 16, 1987, and the effect of such activities on or after April 16, 1987, for each of the classes of institutions described in subsection (a) and the losses to the insurance fund as a result of such activities. (c) Prior Reports to Congress on Changes To Direct Investment Regulations.— (1) In general.— Not less than 90 days before final approval is given by the Federal Home Loan Bank Board to any regulation which repeals or modifies (or has the effect of repealing or modifying) any regulation limiting direct investment activities, the Board shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report describing the proposed regulation and the reasons for the proposed regulation, including the effect of such regulation on the insurance fund. (2) Prospective application of rule.— Paragraph (1) shall not apply with respect to Board Resolution Numbered 87–215 and Board Resolution Numbered 87–215A. (d) Direct Investment Activity Defined.— For purposes of this section, the term “direct investment activities” means activities which are limited under Board Resolution Numbered 87–215 and Board Resolution Numbered 87–215A.