Sec. 4. Adjusted least cost resolution
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Section 13(c)(4) of the Federal Deposit Insurance Act ( 12 U.S.C. 1823(c)(4) ) is amended— by redesignating subparagraph
(H)as subparagraph (I); and by inserting after subparagraph
(G)the following: In this subparagraph: The term large insured depository institution means an insured depository institution with total consolidated assets of not less than $100,000,000,000. The term non-systemic secondary cost to the Deposit Insurance Fund means a cost to the Deposit Insurance Fund from— the appointment of the Corporation as a receiver for a second or additional insured depository institution as a direct and contemporaneous result of the compliance by the Corporation with subparagraphs
(A)and
(E)with respect to a large insured depository institution, including the cost of liquidating any such second or additional insured depository institution in compliance with subparagraphs
(A)and (E); a reduction in the price of an asset as a direct and contemporaneous result of the liquidation by the Corporation of a large insured depository institution in compliance with subparagraphs
(A)and (E); or any other direct and contemporaneous result of the compliance by the Corporation with subparagraphs
(A)and
(E)with respect to a large insured depository institution (other than any such loss that arises from serious adverse effects on economic conditions or financial stability within the meaning of subparagraph (G)). Notwithstanding subparagraphs
(A)and (E), if the Board of Directors (upon a vote of not less than two-thirds of the members of the Board of Directors) makes a determination described in subclause (II), the Corporation may take action or assistance under paragraph
(2)for the purpose of facilitating— a merger or consolidation of the applicable large insured depository institution with another insured depository institution; the sale of any or all of the assets of the applicable large insured depository institution; the assumption of any or all of the liabilities of the applicable large insured depository institution by another insured depository institution; or the acquisition of the stock of the applicable large insured depository institution. A determination described in this subclause is a determination that— the compliance by the Corporation with subparagraphs
(A)and
(E)with respect to a large insured depository institution for which the Corporation has been appointed receiver would result in a non-systemic secondary cost to the Deposit Insurance Fund; and any action or assistance under this subparagraph would avoid or mitigate the non-systemic secondary cost to the Deposit Insurance Fund described in item (aa). The Corporation may not take any action or provide any assistance under this subparagraph unless the total amount of the expenditures by the Corporation and obligations incurred by the Corporation (including any immediate and long-term obligation of the Corporation and any direct or contingent liability for future payment by the Corporation) in connection with the taking of that action or provision of that assistance with respect to an insured depository institution is the least costly to the Deposit Insurance Fund, taking into account the non-systemic secondary costs to the Deposit Insurance Fund that would result without the taking of that action or the provision of that assistance, of all possible methods for meeting the obligations of the Corporation under this section. The Chairperson of the Board of Directors shall— document any determination under clause (ii); and retain the documentation for review under clause (v). The Comptroller General of the United States shall review and report to Congress on any determination under clause (ii), including— the basis for the determination; the purpose for which any action was taken pursuant to such clause; and the likely effect of the determination and such action on the incentives and conduct of insured depository institutions and uninsured depositors. Not later than 3 days after making a determination under clause (ii), the Secretary of the Treasury shall provide written notice of any determination under clause
(ii)to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. The notice under subclause
(I)shall include a description of the basis for any determination under clause (ii). .
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Sec. 4
Adjusted least cost resolution
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