STUDY OF FEDERAL DEPOSIT INSURANCE SYSTEM.

SEC. 1001. STUDY OF FEDERAL DEPOSIT INSURANCE SYSTEM. (a) In General.—The Secretary of the Treasury, in consultation with the Comptroller of the Currency, the Chairman of the Board of Governors of the Federal Reserve System, the Director of the Office of Thrift Supervision, the Chairperson of the Federal Deposit Insurance Corporation, the Chairman of the National Credit Union Administration Board, the Director of the Office of Management and Budget, and individuals from the private sector, shall conduct a study of the Federal deposit insurance system. (b) Topics.—As part of the study required under subsection (a), the Secretary of the Treasury shall investigate, review, and evaluate the following: (1) The feasibility of establishing a deposit insurance premium rate structure which would take into account, on an institution-by-institution basis— (A) asset quality risk; (B) interest rate risk; (C) quality of management; and (D) profitability and capital. (2) Incentives for market discipline, including the advantages of— (A) limiting each depositor to 1 insured account per institution; (B) reducing the amount insured, or providing for a graduated decrease in the percentage of the amounts deposited which are insured as the amounts deposited increase; (C) combining Federal with private insurance in order to bring the market discipline of private insurance to bear on the management of the depository institution; and (D) ensuring, by law or regulation, that on the closing of any insured depository institution, the appropriate Federal insurance fund will honor only its explicit liabilities, and will never make good any losses on deposits not explicitly covered by Federal deposit insurance. (3) The scope of deposit insurance coverage and its impact on the liability of the insurance fund. (4) The feasibility of market value accounting, assessments on foreign deposits, limitations on brokered deposits, the addition of collateralized borrowings to the deposit insurance base, and multiple insured accounts. (5) The impact on the deposit insurance funds of varying State and Federal bankruptcy exemptions and the feasibility of— (A) uniform exemptions; (B) limits on exemptions when necessary to repay obligations owed to federally insured depository institutions; and (C) requiring borrowers from federally insured depository institutions to .post a personal or corporate bond when obtaining a mortgage on real property. (6) Policies to be followed with respect to the recapitalization or closure of insured depository institutions whose capital is depleted to, or near the point of, insolvency. (7) The efficiency of housing subsidies through the Federal home loan bank system. (8) Alternatives to Federal deposit insurance. (9) The feasibility of developing and administering, through the appropriate Federal banking agency, an examination of the principles and techniques of risk management and the application of such principles and techniques to the management of insured institutions. (10) The adequacy of capital of insured credit unions and the National Credit Union Share Insurance Fund, including whether the supervision of such fund should be separated from the other functions of the National Credit Union Administration. (11) The feasibility of requiring, by statute or other means, that— (A) independent auditors and accountants of a depository institution report the results of any audit of the institution to the relevant regulatory agency or agencies; (B) a regulator share reports on a depository institution with the institution's independent auditors and accountants; and (C) independent auditors and accountants participate in conferences between the regulator and the depository institution. (12) The feasibility of adopting regulations which are the same as or similar to the provisions of England's Banking Act, 1987, ch. 22 (4 Halsbury's Statutes of England and Wales 527- 650 (198711, enacted on May 15, 1987, relating to the Bank of England's relationship with auditors and reporting accountants (including sections 8, 39, 41, 45, 46, 47, 82, 83, 85, and 94 of such Act). (c) Final Report.—Not later than the close of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Congress a final report containing a detailed statement of findings made, and conclusions drawn from, the study conducted under this section, including such recommendations for administrative and legislative action as the Secretary determines to be appropriate. * * * * * * *