A bill to amend the Federal Deposit Insurance Act regarding insured mutual savings banks which convert into Federal mutual savings banks.

Amends the Federal Deposit Insurance Act to require the Federal Deposit Insurance Corporation to indemnify the Federal Savings and Loan Insurance Corporation against any losses incurred by a converted mutual savings bank resulting from decline in market value of assets prior to conversion due to interest rate fluctuations.

Extends such indemnification period from five to seven years.

Directs the Federal Home Loan Bank Board, before acting on a proposed merger, branch, or other application involving a converted savings bank during such indemnification period, to request a report on the financial and managerial resources and future prospects of the proposed transaction from the Corporation.

Directs the Corporation to furnish such report within specified time periods.

Provides for arbitration by the Board of Governors of the Federal Reserve in the case of any proposed transaction when the Federal Home Loan Bank Board and the Corporation do not concur.