Competitive Equality Banking Act of 1987

(Measure passed Senate, amended, roll call #44 (79-11))

Competitive Equality Banking Act of 1987 - Title I: Financial Institutions Competitive Equality - Amends the Bank Holding Company Act of 1956 to revise the definition of "bank" to include any bank whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and any institution that: (1) accepts demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties; and (2) engages in the business of making commercial loans. Excludes from the definition: (1) a foreign bank solely by virtue of its having an insured or uninsured branch in the United States; (2) an insured thrift institution; (3) an organization that does not do business in the United States except as incident to its activities outside the United States; (4) certain institutions that function solely in a trust or fiduciary capacity; (5) a credit union; (6) any institution which engages only in credit card operations; (7) an Edge Act or Agreement corporation; and (8) an industrial loan company.

Provides that credit card banks, trust companies, Edge Act and Agreement corporations and industrial loan companies shall be subject to: (1) the Federal Reserve Act's limitations on loans by a member bank to officers, directors, and principal shareholders of the bank or its parent; and (2) the anti-tying provisions of the Bank Holding Company Act Amendments of 1970.

Grandfathers companies that controlled such entities that become "banks" under the definition of this Act (nonbank banks) as of March 5, 1987, in order that such companies shall not be limited by provisions of the Bank Holding Company Act, provided that the parent company does not: (1) obtain control of an additional bank or thrift institution; or (2) acquire more than five percent of the shares or assets of such a bank or thrift institution. Permits such acquisitions under specified circumstances. Specifies that until the Congress has enacted proposals concerning all banks and bank holding companies, a bank may not: (1) engage in any activity in which it was not lawfully engaged as of March 5, 1987; (2) engage in any joint marketing with an affiliate in which it was not engaged as of March 5, 1987; (3) permit any overdraft on behalf of an affiliate, or overdraw its own account at a Federal Reserve Bank on behalf of an affiliate; or (4) increase its assets at an annual rate of more than seven percent.

Prohibits an institution which becomes a bank under the revised definition of this Act and is controlled by a bank holding company from: (1) engaging in activities that would have made it a bank under prior definitions of "bank"; or (2) increasing the number of locations from which it conducts business after March 5, 1987.

Allows State-chartered FDIC-insured savings banks that are owned by a bank holding company to engage in nonbanking activity which is authorized by State law. Requires that such activity be terminated within two years if the savings bank is acquired by a company which does not qualify as a savings bank holding company. Defines a "savings bank holding company" as any company which owns or controls one or more State-chartered savings banks if the assets of the subsidiary (which were chartered by a State on or before October 15, 1982) constitute at least 70 percent of the total assets of the holding company.

Revises the definition of "thrift institution" to include any State-chartered savings bank whose holding company is registered as a savings and loan holding company under the Savings and Loan Holding Company Act. Exempts from the Bank Holding Company Act any company which owns or controls any State-chartered bank or trust company which is wholly owned by thrift institutions or savings banks and which restricts itself to performing certain limited services for thrift institutions.

Amends the Federal Reserve Act to limit the type of transactions a member bank and its subsidiaries may engage in with an affiliate to those which are under substantially the same terms and conditions as those prevailing at the time for comparable transactions with nonaffiliated companies. Makes such limitation applicable to FDIC-insured nonmember banks.

Provides that any company, other than a bank, which directly or indirectly acquires an Edge Act or Agreement corporation after March 5, 1987, should be considered a bank holding company for all purposes of the Bank Holding Company Act except for those provisions relating to the acquisition of additional banks.

Amends the Federal Deposit Insurance Act to apply to FDIC-insured nonmember banks for one year the restrictions relating to affiliations between member banks and organizations engaged principally in certain securities activities and to employee relationships involving a member bank and a person or organization primarily engaged in certain securities activities.

Amends the National Housing Act to revise the definition of "bank" and "bank holding company" to have the same meaning as in the Bank Holding Company Act.

Provides that no savings and loan holding company which is not an insured institution may commence, or continue for more than two years after the date it becomes a holding company, any activity other than those presently permissible for a multiple savings and loan holding company with certain exceptions. Exempts from such restrictions unitary savings and loan holding companies whose subsidiary thrifts meet a qualified thrift lender test (thrifts which devote at least 60 percent of their assets to housing and related activities). Grandfathers unitary savings and loan holding companies formed before March 5, 1987, provided certain conditions are met.

Provides that prohibitions on inter-affiliate transactions currently applicable to savings and loan holding companies shall not apply to transactions between a subsidiary thrift institution and affiliates engaged in activities permissible for a bank holding company under the Bank Holding Company Act. Provides that such transactions shall be subject to the restrictions of the Federal Reserve Act. Prohibits diversified savings and loan holding companies and their subsidiary thrift institutions from engaging in joint marketing activities.

Provides that a State-chartered insured institution that is a subsidiary of a savings and loan holding company shall be subject to the anti-tying restrictions of the Home Owner's Loan Act of 1933 to the same extent and in the same manner as a Federal association.

Establishes a procedure under which companies that own only State-chartered savings banks, which are normally treated as "banks" under the Bank Holding Company Act, may be regulated as savings and loan holding companies rather than as bank holding companies under the Bank Holding Company Act.

Amends the Federal Home Loan Bank Act to provide that no member institution of a Federal Home Loan Bank shall be eligible for advances from that bank unless the member meets the qualified thrift lender test.

Amends the National Housing Act to provide that provisions of the Banking Act of 1933 relating to affiliations between member banks and organizations engaged principally in certain securities activities and relating to certain officer, director, or employee relationships involving a member bank and a person or organization primarily engaged in certain securities activities shall be applicable to every insured institution in the same manner and to the extent as if such insured institution were a member bank.

Allows a thrift institution operating in mutual form to reorganize into a holding company by: (1) forming an interim stock savings bank to be wholly owned by the mutual institution; and (2) transferring its assets and liabilities to the interim bank. Specifies that the institution seeking to reorganize in such manner must provide the Federal Home Loan Bank Board 60 days' prior written notice. Deems such an application to be approved unless the Bank Board disapproves it within the 60-day period. Amends the Bank Holding Company Act of 1956 to allow an FDIC-insured savings bank operating in mutual form to reorganize so as to form a holding company under the same procedures. Provides that a corporation organized as such a holding company shall be regulated on the same terms and be subject to the same limitations as a stock savings bank holding company (as specified under this Act).

Authorizes national banks to invest in property for lease financing transactions on a net lease basis, provided that such investment may not exceed ten percent of the assets of the association.

States that nonprofit organizations operated for political purposes are eligible to own negotiable order of withdrawal accounts.

Amends the National Housing Act to exempt thrift institutions (which are not controlled by another company) which become savings and loan holding companies from certain restrictions imposed by the savings and loan holding company statutes regarding affiliate transactions, declaration of dividends, and indebtedness. Lists certain factors which must be considered by the Corporation prior to the approval of an acquisition or change in control of insured institutions.

Directs the President to appoint a National Commission on Competitiveness in the Financial Services Industry. Requires the Commission to submit a report to the President and the Congress containing recommended changes to the product and service authorities and regulation of financial companies.

Title II: Moratorium on Certain Nonbanking Activities - Imposes a moratorium, beginning March 6, 1987, and continuing through March 1, 1988, on: (1) the expansion of foreign bank activities; (2) certain stock acquisitions by foreign corporations; (3) the approval of the acquisition by any bank holding company or by an insured bank of any entity engaged in the flotation, underwriting, public sale, or distribution of securities; (4) the issuance of any rule, regulation, or order that would have the effect of increasing the insurance powers of banks, bank holding companies, or their subsidiaries; (5) the approval of the acquisition by a bank holding company of any company, including a State-chartered bank, unless the bank holding company has agreed to limit the insurance activities of that company; (6) expansion by a national bank of its insurance activities into places where it was not conducting such activities as of March 5, 1987; and (7) the issuance of any rule, regulation, or order that would have the effect of increasing real estate powers of banks or bank holding companies or their banking or nonbanking subsidiaries.

Title III: Recapitalization of FSLIC - Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987 - Amends the Federal Home Loan Bank Act to direct the Federal Home Loan Bank Board (Board) to charter a corporation to be known as the Financing Corporation. Sets forth provisions concerning the membership, administration, and powers of such corporation.

Requires each Federal Home Loan Bank to invest in the nonvoting capital stock of the Financing Corporation at such times and in such amounts as the Board may prescribe. Limits the aggregate amount of funds invested by all Federal Home Loan Banks in such capital stock. Limits the amount of funds which such Federal Home Loan Bank shall invest based on the reserves and profits of each Bank. Requires a pro rata distribution among all Federal Home Loan Banks of the amount such Banks are required to invest in the Financing Corporation.

Limits the amount of obligations of the Financing Corporation which may be outstanding at any time. Requires that the net proceeds of any obligations issued by the Financing Corporation shall be invested in the capital certificates or capital stock issued by the Federal Savings and Loan Corporation (FSLIC). Grants tax exempt status to any obligations issued by the Financing Corporation.

Authorizes the Financing Corporation to assess, with the approval of the Board, on each insured institution an assessment for each semiannual period equal to one-half of an amount not to exceed one-twelfth of one percent of the aggregate amount of all accounts of insured members of such insured institution for the year in which such semiannual period occurs. Authorizes supplemental assessments with the approval of the Board. Specifies that the total amount of assessments may not exceed interest and financing costs.

Limits the use and disposition of assets of the Financing Corporation not invested in the FSLIC. Requires the Financing Corporation to invest in and hold in a segregated account a specified amount of zero coupon instruments to assure the repayment of principal on obligations of the Financing Corporation.

Establishes a Federal Savings and Loan Insurance Corporation Industry Advisory Committee. Sets forth provisions concerning the membership, administration, and powers of such Advisory Committee. Requires the Advisory Council to: (1) review quarterly reports and budgets of the FSLIC; and (2) report annually to specified committees of the Congress concerning any reports and recommendations made by the Committee to the Board and the FSLIC during the year. Exempts such Committee from the requirements of the Federal Advisory Committee Act.

Terminates the Financing Corporation and the Advisory Committee as soon as practicable after the earlier of: (1) the date by which all stock purchased by the Financing Corporation in the FSLIC has been retired; or (2) December 31, 2026.

Provides that the Financing Corporation shall be deemed to be a "mixed ownership" Government corporation for purposes of the Government Corporations Control Act.

Amends the National Housing Act to authorize the issuance and sale of capital certificates and stock by the FSLIC to the Financing Corporation. Provides that the Financing Corporation shall be the sole purchaser of both capital certificates and the capital stock issued by the FSLIC and that the proceeds from such purchase shall be included as part of the primary reserve of the FSLIC. Prohibits the FSLIC from paying any dividends to the Financing Corporation on the capital certificates and stock.

Requires the FSLIC to establish an equity return account to be funded by contributions by the FSLIC according to a specified formula based on FSLIC reserves. Requires the Financing Corporation: (1) to transfer earnings on any investment of amounts in such equity account to its primary reserve account; and (2) upon maturity of its obligations, to pay off and retire any capital stock using only amounts accumulated in such equity return account.

Reduces the amount of premiums that may be imposed on insured institutions by the FSLIC by an amount equal to assessments imposed by the Financing Corporation.

Amends the Federal Home Loan Bank Act to allow the Board to authorize a Federal Home Loan Bank to declare and pay dividends out of its undivided profits or legal reserves if: (1) the Bank incurs a loss in connection with Financing Corporation stock and has reduced all other reserves to zero; and (2) there is an extraordinary need for member institutions of the bank to receive dividends.

Limits the amounts of special premiums the FSLIC may assess in 1987 through 1991 unless severe pressures exist.

Provides that any security interest granted to a Federal Home Loan Bank by any member of any Federal Home Loan Bank or any affiliate of any such member shall be entitled to priority over the claims of any party other than parties which have obtained a perfected security interest.

Revises FSLIC report requirements to require the FSLIC to prepare quarterly reports and budgets and to submit semiannual reports and budgets to specified committees of the Congress.

Requires the FSLIC to prescribe uniform accounting standards consistent with generally accepted accounting principles to be used by all insured institutions for the purpose of determining compliance with any rule or regulation issued by the FSLIC or the Federal Home Loan Bank Board to the same degree such standards are used to determine compliance with the rules and regulations of the Federal Reserve Board, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. Specifies that such standards shall become effective on December 31, 1987, with respect to each insured institution, except an insured institution that files a plan acceptable to the Corporation for achieving compliance at the earliest feasible date but in no event later than December 31, 1993.

Authorizes the General Accounting Office to audit the Federal Asset Disposition Association.

Requires the Board to: (1) prepare and transmit to the Congress guidelines for dealing with troubled thrift institutions in a manner which will maximize the long term viability of the thrift industry at the lowest cost to the FSLIC; and (2) transmit to the Congress, by January 31, 1989, an evaluation of the effectiveness of such guidelines. Specifies the types of programs to be addressed in such guidelines.

Prohibits the FSLIC or the Board from directing or requiring an insured institution or an association to establish reserves against, or write down the value of, any asset in an amount in excess of the amount that would result from an evaluation of the asset consistent with generally accepted accounting principles, as established by the Financial Accounting Standards Board.

Requires the Federal Home Loan Bank Board to transmit a report to the Congress containing a detailed description of steps that the Board has taken and will take administratively, and of any legislation necessary, to prevent additional insolvencies of thrift institutions.

Ensures that minority owned or controlled commercial banks, investment banking firms, underwriters, and bond counsels shall have an opportunity to participate in all public offerings to recapitalize the FSLIC.

Title IV: Emergency Acquisitions - Financial Institutions Emergency Acquisitions Amendments of 1987 - Amends the Garn-St Germain Depository Institutions Act of 1982 to reinstate provisions of the Deposit Insurance Flexibility Act which expired October 13, 1986, and extends such provisions until March 1, 1990.

Amends the Federal Deposit Insurance Act to revise provisions governing interstate acquisitions of troubled banks involving Federal Deposit Insurance Corporation (FDIC) financial assistance. Authorizes an out-of-State bank or holding company to: (1) acquire a bank with total assets of $500,000,000 or more that is in danger of closing as certified by the appropriate Federal or State chartered authority; (2) acquire a holding company that controls insured bank subsidiaries which hold assets equal to at least $500,000,000, represent a third or more of the total assets of all bank subsidaries of such holding company, and are in danger of closing; (3) acquire such subsidiaries and affiliated banks; or (4) establish newly chartered banks in the State where such subsidiaries are chartered to merge with or purchase the assets and assume the liabilities of such subsidiaries and affiliated banks. Permits the FDIC to assist a merger or acquisition of an insured bank only at the request of the bank's directors or trustees. Provides that a bank which receives FDIC troubled bank assistance when it is eligible to be acquired by an out-of-State bank or holding company shall remain eligible for such acquisition so long as such assistance remains outstanding, with FDIC approval.

Permits an out-of-State bank to make such an extraordinary acquisition under the Federal Deposit Insurance Act only if such ownership is otherwise specifically authorized. Provides that an out-of-State bank holding company which makes such an acquisition shall, two years after such acquisition (unless a shorter period is prescribed by State law), have the same rights to make additional acquisitions and to establish branches as an in-State bank holding company. Prohibits any holding company which makes such an acquisition from being required under State law to divest any other bank or from being prevented from acquiring any other bank or holding company by reason of such acquisition.

Restructures priorities for FDIC authorization of such extraordinary acquisitions to be, in descending order, transactions between: (1) minority-controlled banks; (2) depository institutions of the same type within the same State; (3) institutions of the same type in different States which have reciprocal arrangements authorizing such acquisitions or, if no such arrangements exist, which are contiguous; (4) institutions of the same type in other different States; (5) different types of institutions in the same State; (6) different types of institutions in different States which have reciprocal arrangements authorizing such acquisitions or, if no such arrangements exist, which are contiguous; and (7) different types of institutions in other different States.

Permits the FDIC to assist in the interstate acquisition of an open or closed bank where such acquisition is authorized under applicable State law. Prohibits the FDIC from providing acquisition assistance to a holding company subsidiary that is not an insured bank.

Requires the FDIC to include in its annual report to the Congress a report describing extraordinary acquisitions during the preceding year and identifying the number of FDIC-assisted acquisitions.

Amends the Bank Holding Company Act of 1956 to: (1) authorize the Federal Reserve Board to dispense with notice and hearing requirements for the acquisition by a bank holding company of a bank in danger of closing; (2) require the Board to publish in the Federal Register the order approving the acquisition and identifying any nonbanking activities involved in the acquisition; and (3) authorize the Board to reduce the post-approval waiting period to five days or eliminate such period with the concurrence of the Attorney General if the Board finds that immediate action is necessary to prevent the probable failure of a bank in danger of closing as certified by the appropriate Federal or State chartering authority.

Authorizes the FDIC to organize a bridge bank to assume the deposits of, assume the liabilities of, purchase the assets of, and temporarily perform the functions of one or more closed insured banks if the FDIC Board of Directors determines that: (1) the amount necessary to operate the bridge bank will not exceed the cost of liquidating the closed banks; (2) continued operation of the insured banks is essential to the community; or (3) continued operation of the insured banks is in the interest of the depositors of the closed banks and the public. Provides that the bridge bank shall be a national bank, shall have all corporate powers of a national bank, with specified conditions, and shall be insured from the time of its organization. Requires the FDIC, at the direction of its Board of Directors, to: (1) make available sufficient funds for the bridge bank to operate; and (2) cause capital stock to be offered for sale in an amount sufficient to make possible the conduct of business of the bridge bank on a sound basis. Provides for the acquisition of the bridge bank by an out-of-State bank or holding company or by an insured depository institution located in the State where the closed bank was chartered but established by an out-of-State bank or holding company. Directs the FDIC to wind up the affairs of the bridge bank by voluntary dissolution or by the appointment of a receiver, unless the capital stock of the bridge bank is sold or its assets are taken over and its deposits assumed by another insured bank within two years from the date of its organization. Authorizes the FDIC, in order to facilitate the sale or merger of the bridge bank with another insured depository institution, to: (1) make loans or contributions to, make deposits in, purchase assets or securities of, or assume the liabilities of, such bank or the acquiring company; or (2) guarantee the bridge bank or the acquiring company against loss by reason of such sale or merger.

Amends the National Housing Act to provide that when an FDIC-insured bank converts into an institution that is eligible for FSLIC insurance and applies for such insurance, such bank's FDIC insurance shall terminate automatically when the FSLIC insurance goes into effect.

Exempts assessments and other income received by the FDIC, the FSLIC, the Federal Home Loan Bank Board, the Comptroller of the Currency, and the National Credit Union Administration from apportionment pursuant to the Anti-Deficiency Act.

Requires the FDIC to consider the adverse economic impact resulting from the liquidation of loans of a closed bank. Requires the FDIC to adopt and publish guidelines and procedures to minimize such adverse economic effects.

Encourages the FDIC to exercise its discretionary authority to: (1) work with States which authorize capital pools to save community banks during times of economic distress; and (2) negotiate sales of loans to area banks to prevent further asset devaluation.

Title V: Credit Union Amendments - Amends the Garn-St Germain Depository Institutions Act of 1982 to eliminate the sunset provisions from the National Credit Union Administration's (NCUA) conservatorship and emergency merger authority.

Amends the Federal Credit Union Act to authorize the NCUA to allow second mortgage and home improvement loans for terms longer than 15 years.

Specifies that funds in shares, share certificates, and share draft accounts constitute a member's ownership interest in a credit union. Revises faithful performance bond requirements for credit union employees. Provides that membership officers may be selected from a credit union's membership (currently restricted to the board of directors). Revises provisions concerning the authority of a credit union to expel a member due to nonparticipation.

Allows the NCUA to lease or purchase real or personal property without regard to other laws applicable to independent or executive agencies.

Treats all funds of the NCUA as trust funds for purposes of the Balanced Budget and Emergency Deficit Control Act of 1985.

Specifies that the NCUA's prohibition authority extends to both employees and agents of Federally-insured credit unions. Provides that if a person is removed, suspended, or prohibited from participating in the conduct of the affairs of an insured credit union, that person shall also be removed, suspended, or prohibited from participating in the affairs of all Federally-insured depository institutions, all bank holding companies, and all institutions chartered by the Farm Credit Administration.

Authorizes the NCUA to impose a conservatorship when there is a willful violation of a cease-and-desist order which has become final or when there is a concealment of or refusal to submit documents or other records of a credit union to an NCUA examiner or to any lawful agent of the Board.

Reduces from 90 days to 30 days the period the NCUA must allow State regulators to respond to the NCUA's proposed imposition of conservatorship in the case of a State-chartered, NCUA-insured institution.

Specifies that a conservator shall have all the powers of the members, the directors, the officers, and the committees of a credit union and shall be authorized to operate a credit union in its own name or to conserve its assets in the manner and to the extent authorized by the NCUA.

Allows an insured credit union which has been closed for liquidation to apply to a United States District Court within ten days of such closure for an order requiring the NCUA Board to show cause why it should not be prohibited from continuing such liquidation. Provides that the NCUA's liquidation powers shall not be subject to court regulation.

Amends the Federal Trade Commission Act to exempt Federal credit unions from the jurisdiction of the Federal Trade Commission.

Title VI: Deposit Availability - Fair Deposit Availability Act of 1987 - Sets forth depository institution disclosure requirements concerning: (1) the availability for withdrawal of funds deposited by check or similar instrument into a deposit account used primarily for personal, family, or household purposes; and (2) the computation of interest on deposited funds pending the receipt of provisional credit for the check or instrument. Requires the computation of interest on such deposited funds to begin no later than the date the institution receives provisional credit, unless the computation of interest begins at a later date for all deposits, including cash deposits, made to the account.

Requires the Federal Reserve Board to promulgate interim regulations to expedite customer access to funds deposited by check or similar instrument into deposit accounts by expediting the process for returning all categories of unpaid items or other means. Specifies that such regulations shall provide that no more than six business days shall elapse between the day of deposit and the day of availability for funds deposited by check or similar instrument into deposit accounts at depository institutions. Allows limited exceptions to such time requirements.

Requires the Federal Reserve Board to promulgate regulations, to become effective within 36 months after enactment of this Act, which will expedite customer access to funds deposited by check either by: (1) improving the check clearing system by expediting the process for returning unpaid items in order to ensure that receiving depository institutions can expect to learn of the nonpayment of any item and provide for the availability of funds deposited by check within four business days after such deposit, with specified exceptions; or (2) limiting the length of time during which funds deposited by check shall not be available for withdrawal, with certain exceptions, based upon the number of days necessary to provide provisional credit and considering such factors as the type of instrument, type of institution, and geographic location.

Sets forth circumstances under which such regulations shall not apply. Permits the Board to suspend the applicability of such regulations to any class of checks if necessary to diminish an unacceptable level of losses due to check-related fraud. Requires depositors to receive notice of when funds will be available for withdrawal whenever exceptions to such regulations are invoked.

Requires the Board to promulgate regulations, to become effective within 12 months after enactment of this Act, which require that funds deposited by check shall be available for withdrawal on the date the depository institution receives provisional credit where that check is: (1) endorsed only by the payee; and (2) drawn on the U.S. Treasury or the treasury of any State or local government located in the same State as the receiving depository institution.

Sets forth provisions governing the administrative enforcement of this Act and the civil liability of institutions that fail to comply with this Act.

Provides that State regulations that require funds deposited at State-chartered institutions to be available for withdrawal in a shorter period of time than required pursuant to this Act shall supersede this Act and shall apply to all federally insured depository institutions located in such State.

Requires the Board to conduct a study and submit findings to the Congress on: (1) the effect of changes in fund availability and check clearing made by this Act; (2) the advisability of further changes; (3) an assessment of possible improvements in the check collection system; (4) an assessment of the use of electronics in payments; and (5) the need for improvements in the payments system.

Amends the Federal Reserve Act to authorize all depository institutions to receive for deposit any evidences of transaction accounts from other institutions or from any office of any Federal Reserve bank without regard to any Federal or State law restricting the number or the physical location of such institutions.

Requires creditors to impose interest rate caps on adjustable rate mortgage loans.

States that the Federal Reserve Board and Federal Reserve Banks shall not be exempted from paying fees to privately operated payments providers on a non-discriminatory basis.

Title VII: Check Cashing - Fair Access to Check Cashing Act - Requires all depository institutions to cash Federal, State, and local government checks of consumers: (1) to whom such checks are issued; and (2) who are registered with such institution according to regulations prescribed by the Board. Requires such institutions to post notices describing such check cashing services. Describes administrative and civil remedies for violations of this Act.

Title VIII: Loan Loss Amortization for Agricultural Banks - Allows agricultural banks to amortize over ten years losses on qualified agricultural loans that such banks would otherwise be required to show on annual financial statements for 1984 through 1991.

Title IX: Full Faith and Credit of Federally-Insured Financial Depository Institutions - Expresses the sense of the Congress to reaffirm that deposits, up to the statutorily prescribed amount, in federally-insured depository institutions are backed by the full faith and credit of the United States.

Title X: High Yield Bond Study - Requires the Comptroller General to conduct a study of the investments made by federally-insured institutions in high yield, noninvestment grade bonds during the past five years. Directs the Comptroller General to report the results of such study to the Congress.