,,ii  #aafth ,,congress  #b;d ,session  
,s4 #cifb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #ae1     
#bjbj,mr4 ,moran introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to amend the ,federal ,deposit 
,insurance ,act to remove restrictions  
on brokered deposits1 and for other     
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,asset ,growth      
,restriction ,act of #bjbj4  #b4        
,findings and purpose  7a7 ,findings    
,the ,congress finds that-- 7#a7        
restrictions on the acceptance of       
brokered deposits were enacted in #aihi 
in order to prevent the abuse of the    
deposit insurance system by troubled    
depository institutions2  7#b7 since the
 enactment of the restrictions described
 in paragraph 7#a71 technological and   
demographic developments have changed   
the way in which depository institutions
 seek and source deposits1 and1 as a    

result1 many deposits that are          
classified as brokered pose little1 if  
any1 risk to the deposit insurance      
system2 and  7#c7 in today's economy1   
the greatest risk to the deposit        
insurance system is asset growth by     
depository institutions that are less   
than well capitalized4  7b7 ,purpose    
,the purpose of this ,act is to remove  
the current restrictions on brokered    
deposits and to authorize the ,federal  
,deposit ,insurance ,corporation to     
issue regulations that restrict asset   
growth by depository institutions that  
are less than well capitalized4  #c4    
,asset growth restriction  7a7 ,asset   
growth restriction ,section #bi of the  
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahca;f7 is amended-- 7#a7 in 
the section heading1 by striking        
,brokered deposits and inserting ,asset 
growth restrictions2 and  7#b7 by       
striking subsections 7a7 through 7i71   
and inserting the following3  7a7       
,definitions ,in this section1 the terms

 average1 critically undercapitalized1  
and well capitalized have the meanings  
given the terms in section #ch7;b74  7b7
 ,regulations required ,not later than  
#ah months after enactment of the ,asset
 ,growth ,restriction ,act of #bjbj1 the
 ,corporation1 in consultation with the 
,board of ,governors of the ,federal    
,reserve ,system and the ,comptroller of
 the ,currency1 shall promulgate        
regulations imposing a restriction on   
average total asset growth for insured  
depository institutions that are less   
than well capitalized to maintain safety
 and soundness and minimize risk to the 
,deposit ,insurance ,fund4  7c7 ,maximum
 level of growth ,as part of the        
regulations described in subsection 7b71
 the ,corporation shall-- 7#a7 establish
 a framework to impose one or more      
maximum levels of growth in average     
total assets that an insured depository 
institution that is less than well      
capitalized may not exceed1 and provide 
appropriate adjustments for growth      

resulting from corporate restructuring  
such as acquisitions or mergers2 and    
7#b7 establish a waiver process to      
enable the ,corporation to waive the    
maximum level established in paragraph  
7#a7 upon application by an insured     
depository institution that is not      
critically undercapitalized1 based on   
conditions set by the ,corporation4  7d7
 ,exemptions and additional restrictions
 ,as part of the regulations described  
in subsection 7b71 the ,corporation     
may-- 7#a7 exempt specified classes of  
assets from the asset growth restriction
 if the ,corporation1 in its discretion1
 determines that growth in such assets  
does not present risks to the safety and
 soundness of an insured depository     
institution2 and  7#b7 impose additional
 restrictions on insured depository     
institutions to prevent circumvention or
 evasion of this section by an insured  
depository institution resulting from   
actions taken by the insured depository 
institution by1 or through1 its         

affiliates4  7e7 ,orders ,the           
,corporation may1 by order-- 7#a7       
establish a less restrictive level of   
growth restriction for a particular     
insured depository institution that is  
less than well capitalized1 or a group  
of insured depository institutions that 
are less than well capitalized1 if the  
,corporation finds that such a level    
will not pose an undue risk to the      
,deposit ,insurance ,fund2 and  7#b7    
establish a more restrictive level of   
growth restriction for a particular     
insured depository institution that is  
less than well capitalized1 or a group  
of insured depository institutions that 
are less than well capitalized1 if the  
,corporation finds that such a level is 
necessary to protect the ,deposit       
,insurance ,fund4  7f7 ,conforming      
regulations ,the ,corporation shall     
revise its existing regulations to      
ensure that they conform to this        
section4  4  7b7 ,rule of construction  
,an insured depository institution that 

is in compliance with the regulations or
 orders issued pursuant to section #bi  
of the ,federal ,deposit ,insurance ,act
 7#ab ,u4,s4,c4 #ahca;f71 as amended by 
subsection 7a7 of this section1 shall be
 deemed to be in compliance with the    
asset growth standard established       
pursuant to section #ci of that ,act    
7#ab ,u4,s4,c4 #ahcap-#a74