Depository Institutions Insider Fraud Prevention Act of 1986

Depository Institutions Insider Fraud Prevention Act of 1986 - Title I: Civil Enforcement - Amends the Federal Deposit Insurance Act, the Home Owners' Loan Act, and the National Housing Act to expand the scope of enforcement authority of the Federal Deposit Insurance Corporation (FDIC), the Federal Home Loan Bank Board (FHLBB), and the Federal Savings and Loan Insurance Corporation (FSLIC) to include any affiliate service corporation of an insured bank, institution, or association (entity) and any wholly or partly owned subsidiary of such corporation. Subjects any person participating in conducting the affairs of an entity, including any employee, agent, or stockholder thereof, to removal or suspension by such banking agencies.

Authorizes the banking agencies to ban an entity director or officer or any other person participating in conducting entity affairs from participating in conducting the affairs of any federally regulated depository institution without the prior written approval of the appropriate agency. Requires each banking agency to enforce a ban issued by any other banking agency. Authorizes each banking agency to impose such a participation ban against a director, officer, or participating person who has ceased to hold the position of director or officer or to participate in conducting entity affairs before the agency has commenced enforcement action. Authorizes each banking agency to suspend or remove an entity director or officer or to issue a participation ban against any other person if such director, officer, or person received a financial gain from improper conduct at another entity or business.

Authorizes each banking agency and the National Credit Union Administration Board to take certain disciplinary actions against appraisers who have willfully, or through gross negligence, misrepresented the value of real property serving as collateral for a loan made by any federally insured institution. Permits cease and desist orders issued by the banking agencies to include restrictions on specific activities.

Authorizes a banking agency, whenever an entity's books and records are so incomplete or inaccurate that the agency is unable to determine the entity's financial condition, to issue a temporary order requiring the entity, director, officer, or participating person to: (1) cease and desist from any practice contributing to such problem; or (2) take affirmative action to restore such books and records to a complete and accurate state.

Increases to $5,000 per day the maximum penalty for violating banking agency cease and desist orders. Establishes the same maximum penalty for any other violation of safe and sound banking practices, laws or regulations, or banking agency conditions or agreements.

Prohibits any person who has been convicted of any criminal offense involving dishonesty or breach of trust from serving as an entity director, officer, or employee or participating in conducting the affairs of an entity. Increases the maximum penalty for violating such prohibition to $5,000 per day.

Requires each banking agency to publish a notice summarizing the provisions of any civil enforcement order within 15 days after the order becomes final. Permits an agency to delay publishing such notice if publication would seriously threaten the safety and soundness of any federally regulated depository institution.

Requires each banking agency to provide any external auditor engaged by an entity with copies of reports of condition, examination reports, agency agreements and supervisory memoranda, and civil enforcement orders pertaining to such entity for the appropriate period.

Title II: Right to Financial Privacy Act Amendments - Amends the Right to Financial Privacy Act of 1978 to permit any financial institution or supervisory agency to provide the U.S. Attorney General or a State law enforcement agency with any financial record believed to be relevant to a possible violation of any law relating to: (1) crimes against a financial institution or supervisory agency by any director, officer, employee, agent, or shareholder of a financial institution; or (2) aiding, abetting, or conspiring with such a person in such a crime.

Repeals a requirement that customer records subpoenaed from a financial institution be returned and actually presented to the grand jury.

Permits the exchange of financial records or other information concerning a financial institution among the member agencies of the Federal Financial Institutions Examination Council and the Securities and Exchange Commission.

Requires a financial institution to be prepared to deliver requested financial records to a Government authority within 14 days after receiving a certificate of compliance with the Right to Financial Privacy Act of 1978 or a letter certifying that the circumstances of the request qualify as an exception to disclosure restrictions.

Title III: Change of Control Amendments - Amends the Federal Deposit Insurance Act and the National Housing Act to authorize one 30-day extension, at the agency's discretion, of the period during which a banking agency may disapprove a proposed change in control of an insured bank or institution and two additional 45-day extensions if the acquiring party furnishes incomplete or inaccurate information. Requires the appropriate banking agency to: (1) investigate the competence, experience, integrity, and financial ability of each person named in a notice of a proposed acquisition as a person by whom or for whom such acquisition is to be made; (2) make an independent determination of the accuracy and completeness of the information provided about such persons in the acquisition notice; and (3) publish the names of such persons and the entity to be acquired and solicit public comment on the proposed acquisition, unless the agency determines that such disclosure or solicitation would seriously threaten the safety or soundness of the entity. Sets a maximum civil penalty of $5,000 per day for any violations of change of control laws or regulations shown not to be willful. Authorizes the appropriate banking agency to conduct investigations using subpoena authority and to seek injunctions or other relief in U.S. district court in response to violations of change of control laws or regulations.

Title IV: Fidelity Bond Requirements - Amends the Federal Deposit Insurance Act and the National Housing Act to require the FDIC and the FSLIC to: (1) require each insured bank or institution to provide protection and indemnity against insurable fidelity losses; and (2) set minimum amounts of required standard and excess fidelity insurance coverage. Permits such agencies to contract for, and assess an entity for, coverage the entity fails to obtain on its own. Provides that such a failure shall constitute an unsafe or unsound practice.

Title V: Report to Congress - Requires the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the FDIC, the FHLBB, and the FSLIC to report to the Congress annually concerning: (1) statistics on civil enforcement actions (including amounts of civil money penalties); (2) the number, nature, status, and disposition of criminal referrals to State and Federal law enforcement agencies; and (3) all other enforcement efforts against insider depository institution fraud and abuse.