Deposit Insurance Reform and Regulatory Modernization Act of 1989

Deposit Insurance Reform and Regulatory Modernization Act of 1989 Title I: Common Management of All Federal Deposit Insurance Funds Established - Federal Deposit Insurance Reform and Simplification Act - Amends the National Housing Act to transfer the management of the Federal Savings and Loan Insurance Corporation (FSLIC) from the Federal Home Loan Bank Board (FHLBB) to the Federal Deposit Insurance Corporation (FDIC). Makes such transfer effective January 1, 1990. Requires the FDIC and the FHLBB to consult with and cooperate with each other in carrying out their respective duties. Specifies that all functions and activities of the FSLIC concerning the regulation of savings and loan holding companies shall be transferred to the FHLBB.

Amends the Federal Credit Union Act to transfer the management of the National Credit Union Share Insurance Fund (NCUSIF) from the National Credit Union Administration (NCUA) to the FDIC. Makes such transfer effective January 1, 1990. Requires the FDIC and the NCUA to consult with and cooperate with each other in carrying out their respective duties.

Title II: Federal Deposit Insurance Funds Combined; Federal Deposit Insurance Act Amendments - Federal Deposit Insurance Merger Act - Subtitle A: Merger of Federal Deposit Insurance Funds - Redesignates the FDIC as the Federal Deposit and Savings Insurance Corporation (FDSIC), effective January 1, 1994.

Designates the FDSIC as the insurer of deposits in all eligible depository institutions, including: (1) institutions insured by the FDIC as of December 31, 1993; (2) new national banks when chartered by the Comptroller of the Currency; (3) State banks which become members of the Federal Reserve System; (4) savings and loan associations insured by the FSLIC as of December 31, 1993; (5) new savings and loan associations when chartered by the FHLBB; (6) credit unions insured by the NCUSIF as of December 31, 1994; and (7) new credit unions when chartered by the NCUA. Specifies procedures for uninsured State depository institutions to apply to become insured depository institutions.

Establishes within the FDSIC the Federal Deposit Insurance Fund (Fund) consisting of the Permanent Insurance Fund of the FDIC and amounts transferred to the Fund from the primary and secondary reserves of the FSLIC and from the NCUSIF. Authorizes the FDSIC to limit the aggregate amount of public funds which may be invested in time and savings deposits in any insured depository institution by a Federal, State, or local government depositor on the basis of the size of any such depository institution. Allows an exception to such limitation with respect to deposits for which the government depositor has pledged collateral required as security for such deposits. Preserves any prior rights and obligations of the FSLIC and the NCUSIF arising before the effective date of the termination of the FSLIC and the NCUSIF.

Makes technical and conforming amendments to the definitions of "bank" and other related terms. Sets forth new definitions relating to savings and loan associations, credit unions, and foreign banks. Makes technical and conforming amendments to the Federal Deposit Insurance Act to revise and set forth requirements concerning: (1) the coordination of activities with other examining agencies; (2) reporting; (3) the disposition of net assessment income; (4) adjustments to capital based on capital-to-insured deposits ratios; (5) continuing the business of an insured institution which lacks a quorum of directors due to suspension, which has lost its insured or member status, or which is under receivership; (6) payments to depositors of closed institutions; (7) the issuance of capital stock for a new depository institution; and (8) disqualifying offenses for directors or officers of insured institutions.

Amends the Federal Deposit Insurance Act to provide that time and savings deposits held by insured depository institutions shall be lawful investments for and may be accepted as securities for: (1) all public funds of the United States; (2) fiduciary and trust funds under the authority or control of the United States; and (3) funds of all corporations organized under the laws of the United States. Allows insured depository institutions to be depositaries of public funds and fiscal agents of the United States, subject to regulations prescribed by the Secretary of the Treasury.

Subtitle B: Termination of FSLIC; Amendments to National Housing Act - Terminates the FSLIC effective January 1, 1994. Requires the FDSIC to take such action as may be necessary to wind up the affairs of the FSLIC and to conclude its functions, including matters affecting the disposition of personnel, assets, liabilities, property, and records. Requires the Board of Directors of the FDSIC to ensure the transfer to the FDSIC of all assets, liabilities, property, and records of the FSLIC relating to any function that becomes a FDSIC responsibility. Makes technical and conforming amendments to the National Housing Act concerning the definition of "insured institution," the registration of new savings and loan holding companies, the continuation of the registration of existing holding companies, and reporting by the FHLBB to the FDSIC of insurance risks. Makes technical and conforming amendments to the Home Owners' Loan Act of 1933 and the Federal Home Loan Bank Act.

Subtitle C: Termination of National Credit Union Share Insurance Fund - Terminates the NCUSIF as of January 1, 1995. Requires the FDSIC Board to ensure the transfer to the FDSIC of all assets, liabilities, property, and records of the NCUSIF. Repeals provisions of the Federal Credit Union Act relating to the NCUSIF.

Subtitle D: Amendments to Other Acts - Makes specified technical and conforming amendments to various Federal laws relating to the banking industry, including the Bank Protection Act of 1968, the Home Mortgage Disclosure Act of 1975, the Community Reinvestment Act of 1977, the Depository Institution Management Interlocks Act, the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, the Electronic Fund Transfer Act, the Federal criminal code, the Flood Disaster Protection Act of 1973, the International Banking Act of 1978, the Federal Credit Union Act, the Bank Holding Company Act Amendments of 1970, the Federal Reserve Act, the Bank Holding Company Act of 1956, and the Farm Credit Act of 1971.

Title III: Merger of Federal Banking and Thrift Institution Regulatory Agencies - Federal Depository Institutions Commission Act - Redesignates the Federal Deposit Insurance Act as the Federal Depository Institutions Act.

Subtitle A: Federal Depository Institutions Commission - Establishes the Federal Depository Institutions Commission. Sets the membership of the Commission at five members, four to be appointed by the President and one to be selected by the Chairman of Federal Reserve Board from the members of the Board. Sets the term of Commission members at seven years. Specifies that initial appointments shall be made so as to achieve staggered terms. Sets forth administrative powers of the Commission. Grants U.S. district courts jurisdiction over all cases to which the Commission is a party, with certain exceptions relating to cases involving the Commission as a receiver of a State depository institution or certain rights of a State depository institution under State law.

Subtitle B: Regulation of National Banks - Transfers to the Commission all functions of the Comptroller of the Currency relating to the formation, supervision, and regulation of national banks, effective January 1, 1998. Makes technical and conforming amendments to various Federal statutes relating to the examination and supervision of national banks. Authorizes the Commission to require reports of condition or special reports from such banks at any time and to require the publication of such reports in local newspapers where the national banks are located.

Redesignates certain Federal statutes as the National Bank Receivership Act of 1886. Authorizes the Commission, when acting as a receiver of a national bank, to use the assets of such bank to purchase any real or personal property in which the institution has an interest, if the property is being sold under any execution, foreclosure decree, or court order.

Subtitle C: Regulation of Member Banks - Transfers to the Commission all functions of the Federal Reserve Board and the Federal reserve banks relating to the examination, supervision, and regulation of banks which are members of the Federal Reserve System, effective January 1, 1998. Exempts from such transfer and maintains with the Federal Reserve Board the authority to suspend member banks' use of Federal Reserve System credit facilities and the authority to permit State banks to subscribe to the stock in a Federal reserve bank. Makes technical and conforming amendments to the Federal Reserve Act, the Bank Holding Company Act of 1956, and other Federal banking statutes.

Subtitle D: Regulation of Insured Depository Institutions - Transfers to the Commission all functions of the FDSIC relating to the examination, supervision, regulation and insurance of deposits of State-chartered non-member insured banks, effective January 1, 1998. Makes technical and conforming amendments to various Federal banking statutes.

Subtitle E: Regulation of Thrift Institutions - Transfers to the Commission all functions of the FHLBB relating to the chartering, regulating, and examining of savings banks, savings and loan institutions, savings and loan holding companies, and holding company affiliates, effective January 1, 1998. Makes technical and conforming amendments to the Home Owners' Loan Act of 1933, the National Housing Act, and the Federal Home Loan Bank Act.

Subtitle F: Regulation of Credit Unions - Transfers to the Commission all functions of the National Credit Union Administration Board, effective January 1, 1998. Makes technical and conforming amendments to the Federal Credit Union Act.

Subtitle G: Termination and Transfer Provisions - Authorizes the President and the chairman of the Federal Reserve Board to appoint members of the Commission in advance of its effective date in order for the Commission to be prepared to carry out its functions on such effective date. Requires the Commission to consult with other banking regulatory agencies for the purpose of achieving the transfers and reorganizations required by this Act in the most efficient and least disruptive manner.

Terminates the FDSIC (as established by this Act) effective January 1, 1998. Requires the Commission to wind up the affairs of the FDSIC, to conclude its functions, including matters affecting the disposition of personnel, assets, liabilities, property, and records and to transfer to the Commission all assets, liabilities, property, and records of the FDSIC.

Terminates the National Credit Union Administration and Board, effective January 1, 1998. Requires the Commission to wind up the affairs of NCUA as of such date, to conclude its functions, including matters affecting the disposition of personnel, assets, liabilities, property, and records and to transfer to the Commission all assets, liabilities, property, and records of the NCUA.

Requires the Commission to ensure the efficient transfer to the Commission of the assets, liabilities, property, and records relating to the functions of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Home Loan Bank Board transferred to the Commission.

Subtitle H: Effective Date - Makes this title effective on January 1, 1998.