THE FEDERAL-DEPOSIT-INSURANCE-CORPORATION IMPROVEMENT ACT OF 1991

In 1991, the proponents of banking reform introduced sweeping legislation in an heroic attempt to fundamentally change the current banking and financial system of the United States and expand the powers of financial institutions. Instead, Congress has enacted a bill with a narrower focus-the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA)-the purposes of which are to recapitalize and protect the bank insurance funds, reform the deposit insurance system, and improve supervision of federally insured depository institutions, including foreign banks. The author provides an overview and analysis of the many significant changes made by FDICIA that will be of serious interest, now and for years to come, to bank and thrift officials, as well as to lawyers and accountants who work for these institutions.