Depository Institutions Insider Abuse Prevention and Enhanced Powers Act of 1988

Depository Institutions Insider Abuse Prevention and Enhanced Enforcement Powers Act of 1988 - Title I: Civil and Administrative Enforcement - Amends the Federal Deposit Insurance Act, the Home Owners' Loan Act of 1933, the National Housing Act, and the Federal Credit Union Act to make employees, agents, and shareholders of depository institutions subject to the administrative enforcement orders of the appropriate Federal regulatory agency. (Current law provides that only officers and directors of depository institutions are subject to such enforcement orders.)

Revises the authority of the Federal Deposit Insurance Corporation (FDIC), the Federal Home Loan Bank Board (FHLBB), the Federal Savings and Loan Insurance Corporation (FSLIC), and the National Credit Union Administration (NCUA) to issue cease and desist orders concerning depository institutions within their respective jurisdictions. Allows such agencies to issue cease and desist orders to: (1) require affirmative action to correct conditions resulting from certain violations or practices, including making restitution or reimbursement, providing indemnification, rescinding contracts, or disposing of assets or loans; (2) limit the activities or functions of the depository institution or any director, officer, or other person participating in the conduct of the affairs of the institution; and (3) require the cessation of certain activities if the depository institution's books and records are incomplete or inaccurate or require the restoration of books and records to a complete and accurate state.

Revises rules concerning the suspension or removal of a director or officer of a depository institution due to misconduct by the FDIC, the FHLBB, the FSLIC, and the NCUA. Deletes the requirement that the regulatory agency must show misconduct by an officer or director which results in "substantial" financial loss or other damage to the depository institution. (Allows the temporary removal of an officer or director for misconduct pending a permanent removal if necessary for the protection of the institution or depositors). Provides for identical standards for such removal regardless of where the misconduct occurred. (Current law provides for different standards depending on whether the misconduct took place at another institution or business enterprise or at the particular institution from which removal is sought.) Allows the regulatory agency involved to seek such a suspension or removal in cases where an officer or director has violated any written agreement between the institution and the regulatory agency.

Prohibits any person who has been removed or suspended from office or prohibited from participating in the affairs of a depository institution by an order of the FDIC, the FHLBB, the FSLIC, or the NCUA from holding any office in, or participating in the affairs of, any federally regulated depository institution or holding company or subsidiary (including institutions chartered under the Farm Credit Act of 1971). (Presently, the regulatory agency can only prohibit persons from participating in the affairs of the institution in which he or she is presently located.) Allows an exception to such prohibition upon written approval of the appropriate regulatory agency. Provides for the judicial review of denial of such an exception.

Authorizes the FDIC, the FHLBB, the FSLIC, and the NCUA to provide notice of the intention to prohibit any person from participating in the affairs of any federally regulated depository institution, notwithstanding the fact that such person has ceased to hold the position of officer or director or has ceased to participate in the conduct of the affairs of such a depository institution before such notice is served.

Increases from $1,000 per day to $5,000 per day the civil penalty for the violation of a cease and desist order or an order for the suspension or removal of an officer or director issued by a Federal banking regulatory agency. Imposes a $5,000 civil penalty (in addition to penalties for violations of such orders) for a violation of: (1) any law or regulation; (2) any written condition imposed by the appropriate Federal banking agency in connection with the grant of any application or other request; or (3) any written agreement between the depository institution and the appropriate Federal banking agency.

Imposes criminal penalties upon any person who participates in the affairs of any federally regulated depository institution or holding company or subsidiary after having been suspended, removed from office, or prohibited from participating in the affairs of any depository institution by an order of the appropriate Federal banking regulatory agency. (Current law imposes criminal penalties only for participating in the affairs of the institution from which the person was prohibited, removed, or suspended.)

Authorizes the FDIC, the FHLBB, the FSLIC, and the NCUA to take the following actions against any real estate appraiser who willfully or through gross negligence misrepresents the value of real property used as collateral for a loan made by any federally regulated depository institution: (1) suspend such person from making such appraisals; (2) prohibit such person from preparing such an appraisal without prior approval by the appropriate regulatory agency; and (3) assess a $5,000 civil penalty.

Specifies that the influencing of a real estate appraiser by any director, officer, or other person participating in the affairs of a federally regulated depository institution shall be treated by the appropriate banking regulatory agency as an unsafe and unsound practice.

Revises procedures for the termination of FDIC deposit insurance to delete provisions requiring 120 days' advance notice by the FDIC to the appropriate Federal and State banking regulatory agencies prior to such a termination.

Specifies that no amendments made by this Act shall be construed as limiting the authority of any appropriate Federal banking regulatory agency under any other Federal law or under the law of any State.

Increases from $100 per day to $5,000 per day the penalty for unauthorized participation in the affairs of a depository institution by any person who has been convicted of any criminal offense involving dishonesty or a breach of trust. Makes both the depository institution and the individual involved subject to such penalty. (Current law makes only the depository institution subject to such penalty.)

Revises the procedure for imposing penalties for violations of the Change in Bank Control Act and Change in Savings and Loan Control Act. Reduces the amount of such penalties from $10,000 per day to $5,000 per day.

Authorizes the FHLBB and the FSLIC to issue civil enforcement orders concerning a service corporation of an association or a subsidiary of such service corporation, whether wholly or partly owned. (Current law limits such authority to orders concerning an affiliate service corporation of an association.)

Amends the Bank Protection Act of 1968 to repeal requirements for depository institutions to submit periodic reports with regard to the installation, maintenance, and operation of security devices and procedures.

Imposes civil penalties for the filing of false or misleading reports of condition by depository institutions and holding companies. (Current law allows penalties only for late reports.)

Requires the General Accounting Office (GAO) to conduct a study of the desirability of continued secrecy of administrative and civil enforcement actions taken by Federal banking regulatory agencies. Specifies the factors to be considered in such study, including the deterrent effects and risk of disclosing such actions. Requires GAO to report to the Congress concerning the results of such study.

Requires the Comptroller of the Currency, the Federal Reserve Board, the FDIC, the FHLBB, the FSLIC, and the NCUA to make available to the public redactions of decisions and accompanying orders with respect to formal administrative enforcement adjudications of the respective agencies through regular publication or similar means of dissemination.

Requires the FDIC, the FHLBB, the FSLIC, and the NCUA to furnish to independent auditors copies of required reports of condition, examination reports, supervisory memoranda of understanding, and all proposed and final civil enforcement actions. Authorizes each agency to issue regulations to ensure the confidentiality of such information.

Title II: Right to Financial Privacy Act Amendments - Amends the Right to Financial Privacy Act of 1978 to include bank holding companies, savings and loan holding companies, and their subsidiaries within the coverage of such Act.

Exempts from the provisions of such Act the examination by, or disclosure to, any supervisory agency of financial records or information in connection with the exercise by such agency of its supervisory, regulatory, or monetary functions with respect to: (1) any financial institution, holding company, or subsidiary thereof; or (2) any officer, director, employee, agent, or other person participating in the affairs of such an institution.

Specifies that the provisions of such Act shall not apply when a financial institution or supervisory agency, or any officer, director, employee, or agent thereof provides financial records to a law enforcement agency of the United States or any State if there is reason to believe that such records may be relevant to possible violations of: (1) any law relating to crimes by or against financial institutions or against supervisory agencies; (2) certain drug control statutes; or (3) money laundering prohibitions.

Makes technical amendments relating to the production of subpoenaed records.

Authorizes the exchange of information between the supervisory agencies and the Securities and Exchange Commission. (Current law allows such exchanges only between the supervisory agencies themselves.)

Makes technical amendments regarding the duty of financial institutions to deliver records to the supervisory agencies.

Title III: Report to Congress - Requires the Comptroller of the Currency, the Federal Reserve Board, the FDIC, the FHLBB, and the FSLIC to submit an annual report to the Congress concerning: (1) the numbers of informal and formal supervisory, administrative, and civil enforcement actions instituted; (2) information on assessed and uncollected civil money penalties; (3) enforcement efforts and initiatives undertaken against unsafe and unsound practices, criminal misconduct, and insider abuse; and (4) recommendations concerning the need for additional legislation and resources.