Federal Deposit Insurance Corporation

“ Peoples Heritage Savings Bank et al. 14 F.3d 44 (1993) Pension Administration Committee of the Sheraton Corporation v. J Carroll 14 F.3d 44 (1994) St Hilaire Associates Inc v. Federal Deposit Insurance Corporation 14 F.3d 44 (1993) Redin et al. ”

“ BANK ENTERPRISE ACT REQUIREMENT.— The Corporation shall design the risk-based assessment system so that, insofar as the system bases assessments, directly or indirectly, on deposits, the portion of the deposits of any insured depository institution which are attributable to lifeline accounts established in accordance with the Bank Enterprise Act of 1991 shall be subject to assessment at a rate determined in accordance with such Act. ”

“ The law which we apply to this case consists of principles of established credit in jurisprudence selected by us because they are appropriate to effectuate the policy of the governing Act. The Corporation was created and financed in part by the United States [15] to bolster the entire banking and credit structure. The Corporation did not simply step into the private shoes of local banks. The purposes sought to be accomplished by it can be accomplished only if it may rely on the integrity of banking statements and banking assets. ”

“ Restrictions on real estate lending. Sec. 305. Improving capital standards. Sec. 306. Safeguards against insider abuse. Sec. 307. FDIC back-up enforcement authority. Sec. 308. Interbank liabilities. Subtitle B — Coverage Sec. 311. Deposit and pass-through insurance. Sec. 312. Foreign deposits. Sec. 313. Penalty for false assessment reports. Subtitle C — Demonstration Project and Studies Sec. 321. Feasibility study on authorizing insured and uninsured deposit accounts. Sec. 322. Private reinsurance study. TITLE IV — MISCELLANEOUS PROVISIONS Subtitle A — Payment System Risk Reduction Sec. 401. ”

“ Indeed, from the business point of view, its position is less favorable. For it became pledgee only in 1938, three years after the note had been charged off on the books of the bank. The Corporation had since 1934 been making a regular annual examination of the bank's books, which showed this fact; and the schedule of collateral given to respondent when it became pledgee made it perfectly clear that the note had been charged off.
We are not concerned here with liability based on any doctrine of 'equitable estoppel' evolved as a principle of federal common law having no statutory roots. ”

“ Standards for safety and soundness. Sec. 133. Conservatorship and receivership amendments to facilitate prompt corrective action. Subtitle E — Least-Cost Resolution Sec. 141. Least-cost resolution. Sec. 142. Federal Reserve discount window advances. Sec. 143. Early resolution. Subtitle F — Depository Institutions Lacking Federal Deposit Insurance Sec. 151. Depository institutions lacking Federal deposit insurance. Subtitle G — Technical Corrections Sec. 161. Technical corrections and clarifications. TITLE II — REGULATORY IMPROVEMENT Subtitle A — Regulation of Foreign Banks Sec. ”

“ But nothing is farther from the truth. The Federal Government does NOT guarantee one cent of anybody's deposit in ANY bank— National, State or Private, anywhere, anytime—whether a member of F D.I.C. or not. But it does require ALL Banks belonging to F.D.I.C. to guarantee one another's depositors' deposits up to $5,000 for each depositor—A SORT OF MUTUAL INSURANCE. We are a small Bank, but mighty for our inches in a financial way. And we want to put all the force of all of our resources solely back of the deposits of our own depositors. ”

“ June 20, 1939, ch. 214, § 2, 53 Stat. 842; Apr. 13, 1943, ch. 62, § 1, 57 Stat. 65; Aug. 5, 1947, ch. 492, §§ 2, 4, 61 Stat. 773; June 25, 1948, ch. 645, § 21, 62 Stat. 862; Oct. 15, 1949, ch. 695, § 4, 63 Stat. 880 ”

“ Through the FDIC, every savings account, checking account, and certificate of deposit is insured by the Federal Government for up to $100,000. The FDIC has been in existence for 75 years, and no one has ever lost a penny on an insured deposit. ”

“ And while the guarantee of cash value based on net premiums reduces substantially the investment risk of the contract holder, the assumption of an investment risk cannot by itself create an insurance provision under the federal definition. ”

“ When the Federal Reserve steps in as a lender of last resort, which it's had to do repeatedly since this financial crisis began, it's providing an insurance policy underwritten by the American taxpayer. ”

“ It appears that the practices and procedures vary as to withdrawal of funds from federal savings and loan associations. Under the law the depositor is a shareholder rather than a creditor, and his deposits are subject to withdrawal only after a 30-day demand. However, the District Court found that a withdrawal from the accounts here involved could be made 'as quickly as a withdrawal from a checking account * * *.' In addition, the integrity of the deposits was assured by federal supervision of the associations plus federal insurance of the accounts. ”

“ Shelby opposes increasing the current $100,000 insurance limit on individual accounts and questions the "free ride" that banks are receiving through the 1995 suspension of premiums for deposit insurance for all but the most risk-prone banks.
"I never have insurance on any building I have unless I pay the premium...I don't know what the premiums should be, but to just let a few people pay the bank insurance premium and give everybody insurance...that ought to be looked at," Shelby said when asked about deposit insurance by a reporter. ”

“ The current fixed designated reserve ratio of 1.25 percent brought us too close to this possibility in 2002 – at a time when our economy needed more liquidity in banks, not less. I support legislation to replace the hard 1.25 percent trigger with a flexible trigger, which can postpone assessments until the economy is stronger. As you know, there are many in Congress who are seeking to raise deposit insurance coverage levels. ”

“ There are savings-bank deposits and deposits in ordinary banks, running up into scores of billions and held by over a score of million of depositors. There are scores of billions of dollars in insurance contracts of various kinds, many of them running for long terms, such as the span of human lives. The widow whose husband twenty years ago insured his life for her benefit gets to-day only a little over one third of the purchasing power contemplated in the policy. ”

“ The general principle that corporations must confine their operations to their legitimate business, is sufficiently definite. It is not necessary, nor would it be useful, to restrict them in the manner of conducting such business.'
In the State of New York, the principle of mutual insurance was sought to be worked out, not only by premium notes, and by the payment of a cash advance premium, but, in the same company, the premium on some of the policies is frequently secured by the premium note, and on other policies by cash paid in lieu of the note. ”