Financial Institutions Reform, Recovery, and Enforcement Act of 1989

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 - Title I: Purposes - Specifies the purposes of this Act, including regulatory reform, the establishment of an independent insurance agency to provide deposit insurance, and the provision of improved supervision and enhanced enforcement powers. Title II: Federal Deposit Insurance Corporation - Amends the Federal Deposit Insurance Act to authorize the Federal Deposit Insurance Corporation (FDIC) to insure deposits held at savings associations as well as commercial banks. Increases the membership of the FDIC's Board of Directors from three to five members. Specifies that one of the additional two members shall be the Director of the Office of Thrift Supervision and the other the Comptroller of the Currency. Revises certain definitions for the purposes of the Federal Deposit Insurance Act. Specifies that the Director of the Office of Thrift Supervision (DOTS) shall be considered the appropriate Federal banking agency in the case of a savings association or a savings and loan holding company. Provides that every FSLIC insured savings association shall continue to be insured by the FDIC without application or approval. Provides that whenever a depository institution files an application or notice for membership with, or to commence or resume business with, the appropriate Federal banking agency, such agency must provide such application to the FDIC for comment. Requires such agency to take the FDIC's comment into account in deciding whether to grant the application. Provides that certain State depository institutions shall continue as insured institutions. Allows any Federal savings association authorized to do business by the DOTS to become an insured depository institution upon the filing of an application with the FDIC together with a certificate issued by the DOTS unless insurance is denied by the FDIC. Sets forth procedures for the FDIC to evaluate such an application. Specifies the factors to be considered in granting or denying insurance coverage. Requires the FDIC to notify the DOTS if such insurance coverage is denied, and to give specific reasons in writing for such denial. Requires every noninsured depository institution which becomes insured by the FDIC to pay any entrance fee prescribed by FDIC regulations. Requires that such fee be credited to either the Bank Insurance Fund (BIF) or the Savings Associations Insurance Fund (SAIF) depending on which fund the institution joins. Prohibits any insured depository institution from participating in any type of conversion transaction which would result in a change of membership from one such fund to the other without the approval of the FDIC. Places a five-year moratorium on the approval of such conversion transactions, except in limited circumstances. Requires financial institutions which participate in such conversion transactions to pay specified entrance and exit fees. Provides for conversion by merger. Provides that whenever the FDIC incurs a loss in connection with the default of an insured depository institution, or in connection with providing assistance to an insured depository institution in danger of default, any other commonly-controlled insured depository institution shall be liable to the FDIC and on request shall reimburse the FDIC for any such loss. Specifies the method of calculating such liability. Sets forth procedures for imposing and collecting such liability. Limits the rights of any third parties in such proceedings. Provides that for a five-year period no BIF members shall be held liable for the default of a BIF member. Defines "commonly-controlled" for purposes of determining such liability. Adds as a factor to be considered by the FDIC in evaluating applications for insurance coverage the risk presented to the BIF or the SAIF. Allows the FDIC, after reaching agreement with the other Federal banking agencies, to require insured depository institutions to file additional reports for insurance purposes. Requires the FDIC to set the assessment rate for insured depository institutions annually. Specifies that the annual assessment rate for BIF members shall be determined independently from the annual assessment rate for SAIF members. Prescribes the assessment rates for BIF members for 1989, 1990, and 1991 onward. Prescribes the assessment rates for SAIF members through 1990, for 1991 through 1993, for 1994 through 1997, and for 1998 onward. Allows the FDIC to raise or lower such assessment rates under specified circumstances. Specifies that such assessments shall be paid annually. Allows assessment credits to BIF members and SAIF members for years in which the reserve ratio is expected to exceed the designated reserve ratio in the succeeding year. Permits insured savings associations to offset secondary reserves against assessed premiums. Grants the FDIC the same authority to examine insured savings associations and to insure the deposits held at savings associations as it presently has with respect to insured banks. Establishes two insurance funds (the Bank Insurance Fund (BIF) and the Savings Associations Insurance Fund (SAIF)) to be used by the FDIC to carry out the insurance purposes of this Act. Specifies that such funds are both to be operated and administered by the FDIC. Requires such funds to be separately maintained and not commingled. Specifies that the BIF shall consist of the assets of the Permanent Insurance Fund and all amounts assessed of BIF members. Specifies that the SAIF shall consist of all amounts assessed of SAIF members (which are not required for the Financing Corporation or the Resolution Funding Corporation pursuant to this Act) and of funds provided by the Secretary of the Treasury according to a specific schedule for FY 1991 through FY 1999. Authorizes the Secretary to provide additional amounts for such fund if the minimum net worth of the fund falls below a certain level. Authorizes appropriations for such funds. Authorizes the FDIC to borrow funds for the use of the SAIF. Provides that such borrowings shall be a direct liability of the SAIF and shall be subject to certain limitations. Revises and defines the authorities and duties of the FDIC as the receiver or conservator for insured Federal financial institutions and for insured State financial institutions. Specifies that all insurance payments made on account of a closed bank or insured branch of a foreign bank shall be made only from the Bank Insurance Fund and all payments made on account of a closed savings association shall be made only from the Savings Association Insurance Fund. Provides that when the FDIC pays insurance to a depositor, the FDIC shall be subrogated to the depositor's claim against the financial institution. (Such right of subrogation now applies only to national banks.) Sets forth the authorities and duties of the FDIC in the establishment of bridge banks in cases of failed or failing financial institutions. Authorizes the FDIC to sue such bridge banks in the case of failed or failing financial institutions as well as banks. Increases from one to three the number of times a bridge bank may be granted a one-year extension of its corporate existence. Prescribes procedures for the termination and dissolution of bridge banks. Establishes the FSLIC Resolution Fund (Fund). Specifies that such Fund shall be managed by the FDIC and shall be separately maintained and not commingled. Transfers to such Fund the reserves and assets, debts, obligations, contracts, and other liabilities of the FSLIC existing on the date of the dissolution of the FSLIC. Outlines the Fund's funding sources. Provides for additional funding by the Secretary of the Treasury from appropriated funds in the event such funding sources are insufficient. Limits any judgment resulting from a civil action against the FSLIC or the FDIC to the assets of such Fund. Dissolves such Fund upon the satisfaction of all debts and liabilities and the sale of all assets acquired in case resolutions. Requires that any funds remaining in such Fund be covered into the Treasury. Requires that any funds held in either the BIF or the SAIF must be invested in U.S. Government obligations or in obligations guaranteed by the U.S. Government. Allows the FDIC to request a 60-day stay of any legal proceedings to which it becomes a party due to its acquisition of any asset or in the exercise of certain authorities. Requires the FDIC, in determining whether to provide assistance to financial institutions, to consider: (1) the immediate and long-term obligations of the FDIC with respect to such assistance; and (2) the Federal tax revenues which would be foregone. Provides that transfers of assets or liabilities associated with any trust business may be effected by the FDIC in connection with any asset purchase transaction without any further State or Federal approval. Revises provisions relating to certain agreements against the interests of the FDIC. Specifies that the Board of Directors of the FDIC may act by a 75 percent vote (current law requires a unanimous vote) in order to override a State's objection to an assisted interstate acquisition of an insured financial institution in default having $500,000,000 or more in assets. Cites conditions which the Resolution Trust Corporation must consider when determining whether to provide monetary assistance upon the request of an SAIF member. Increases the borrowing authority of the FDIC from $3,000,000,000 to $5,000,000,000. Makes such borrowing authority subject to the approval of the Secretary of the Treasury. Limits any State or local tax to which the FDIC may be subjected when acting as a receiver or conservator of a financial institution. Limits the borrowing of both the BIF and the SAIF to the extent such liability reduces the fund's net worth to less than ten percent of assets. Requires the FDIC to report to the President and the Congress annually regarding its operations, activities, budget, receipts, and expenditures. (Current law requires an annual report regarding only the FDIC's operations.) Requires the FDIC to make quarterly reports to the Secretary of the Treasury with respect to the FDIC's financial operating plans and forecasts. Makes all insured financial institutions subject to the Bank Merger Act. Makes the Office of Thrift Supervision the responsible agency with respect to mergers where the acquiring, assuming, or resulting institution is to be a savings association. Requires any insured savings association which establishes or controls a new company or elects to conduct any new activity to notify the FDIC and the DOTS. Grants the FDIC and DOTS certain enforcement powers with respect to any company controlled by an insured savings association. Authorizes the FDIC to determine activities which are incompatible with deposit insurance. Prohibits State savings associations from engaging in any activity unless permitted by the FDIC. Revises the statement of the policy of nondiscrimination against State nonmember banks under the Federal Deposit Insurance Act to include State savings associations. Prohibits a troubled financial institution (one which has not met its minimum capital standards) from increasing its deposit accounts through the services of a deposit broker (unless the FDIC determines that such deposit does not constitute an unsafe or unsound practice). Establishes the Savings Association Insurance Fund Industry Advisory Committee to advise on business conditions and regulatory matters affecting SAIF members. Terminates the Committee ten years after enactment of this Act. Title III: Savings Associations - Amends the Home Owner's Loan Act of 1933 to establish the Office of Thrift Supervision in the Department of the Treasury. Establishes the position of the Director of the Office of Thrift Supervision, subject to the general oversight of the Secretary of the Treasury. Declares that the Chairman of the Federal Home Loan Bank Board on the date of enactment of this Act shall be the Director until such individual's term as Chairman would have expired. Outlines the duties of the Office with respect to the examination, supervision, and regulation of Federal savings associations. States that such authorities are intended to encourage such associations to maintain their role of providing credit for housing in a manner consistent with principles of safe and sound operation. Requires the DOTS to prescribe accounting and disclosure standards for savings associations. Provides that such standards shall incorporate generally accepted accounting principles to the same degree such principles are used to determine compliance with the rules and regulations of other Federal banking agencies. Requires that the rules, regulations, and policies of the DOTS and FDIC governing the operation of savings associations shall be no less stringent than those of the Comptroller of the Currency for national banks. Prohibits savings associations from participating in lotteries and related activities. Exempts from such proscription the performance of services for any State operating a lottery. Requires approval of the DOTS before a savings association may issue securities or guarantee definite maturity dates for them. Revises the Guidelines for savings associations regarding their commercial lending practices and demand accounts. Includes among the grounds for a DOTS appointment of a receiver for an association: (1) substantially insufficient capital; and (2) an inability to pay debts or obligations on a timely basis. Cites circumstances under which the DOTS may appoint a conservator or receiver of an insured State savings association in coordination with the appropriate State officials. Authorizes stock to mutual conversions by savings associations subject to the approval of the DOTS. Requires the DOTS to establish for all savings associations capital standards that are no less stringent than those applied to national banks. Requires such standards to include risk-based capital standards. Mandates that such capital standards require savings associations to maintain a three percent ratio of core capital to assets. Permits the inclusion of purchased mortgage servicing rights in the calculation of capitalization standards. Permits certain supervisory goodwill to be included in calculating core capital if certain conditions of financial soundness are met. Amortizes certain supervisory goodwill over a five-year period. Deducts from a savings association's capital (for purposes of capital standards compliance) its investment in, and loans to, any subsidiary engaged in activities that are impermissible for a national bank (except for mortgage banking activities). Authorizes the DOTS to: (1) restrict (before a certain date) or prohibit (after that date) the asset growth of a savings association which is not in compliance with capital standards; and (2) require such association to submit an acceptable business plan. Requires every insured savings association to maintain a liquid asset account according to standards set by the DOTS. Provides that the expense of the examination of savings associations or their affiliates shall be assessed upon savings associations in proportion to their assets or resources. Specifies procedures for making such assessments and remedies in cases where an affiliate refuses to pay examination costs, permit examination, or provide required information. Revises the guidelines under which savings and loan holding companies may control and acquire savings associations. Sets forth additional criteria for the qualified thrift lender test. Makes applicable to savings associations certain provisions of the Federal Reserve Act relating to transactions with affiliates and loans and extensions of credit to directors and controlling persons. Prohibits any savings association from carrying on any sale, plan, or practices or any advertising in violation of regulations promulgated by the DOTS. Amends the Home Owner's Loan Act to revise the guidelines for the qualified thrift lender test. Sets forth transitional rules for: (1) certain transactions with affiliates; and (2) the retention of certain loans and investments. Subjects the Office of Thrift Supervision to the audit authority of the General Accounting Office (GAO). Prohibits the Secretary of the Treasury from merging or consolidating the Office of Thrift Supervision with either the Office of the Comptroller of the Currency or the Comptroller of the Currency. Requires the Secretary of the Treasury to consult with the DOTS and the FDIC regarding the preservation of minority ownership of financial institutions. Title IV: Transfer of Functions, Personnel, and Property - Terminates the Federal Savings and Loan Insurance Corporation (FSLIC) after the enactment of this Act. Abolishes the Federal Home Loan Bank Board (FHLBB). Retains the position of Chairman of such Board solely to wind up the affairs of the FSLIC and the FHLBB. Provides for the continuation and enforcement of all rules, regulations, and orders of the FSLIC and FHLBB. Provides for the transfer of the personnel and property of the FSLIC to the FDIC, the DOTS, the Federal Housing Finance Board, and the Resolution Trust Corporation. Requires the FHLBB Chairman to submit a final accounting of FSLIC finances and operations to the Secretary of the Treasury, the Office of Management and Budget, and the Congress within a 60-day deadline. Title V: Financing For Thrift Resolutions - Subtitle A: Oversight Board and Resolution Trust Corporation - Establishes the Oversight Board to oversee and be accountable for the Resolution Trust Corporation, and to develop a strategic plan for conducting the Corporation's activities. Requires such plan to be submitted to the Congress before 1990. Terminates the Board within 60 days after it has fulfilled its responsibilities. Establishes the Resolution Trust Corporation (RTC) to: (1) carry out a program to manage and resolve cases involving institutions insured by the FSLIC for which a receiver or conservator has been appointed or is appointed within three years following the enactment of this Act; and (2) manage the assets of the Federal Asset Disposition Association (FADA). Provides that the RTC shall have the same case resolution and financial assistance rights and powers as the FDIC. Specifies that the RTC shall not have the authority to obligate the FDIC or its funds and that it shall be subject to the same limitations as the FDIC in connection with providing assistance to, or liquidating or otherwise resolving cases involving insured institutions. Establishes the RTC as the successor to FSLIC conservatorship and receivership functions. Directs the RTC to review all insolvent institution cases resolved by the FSLIC between January 1, 1988, and the date of enactment of this Act in order to determine whether it can reduce costs under existing FSLIC agreements relating to such cases. Authorizes the RTC to renegotiate, modify, or restructure such agreements. Requires the RTC to establish a Real Estate Asset Division (READ) to: (1) oversee the disposition of real property assets by entities or institutions under its purview; and (2) publish an inventory of such assets. Sets guidelines for RTC disposition of rental properties to provide homeownership and rental housing opportunities for lower-income families. Directs the Secretaries of Agriculture and of Housing and Urban Development to expedite financial assistance procedures for such program. Directs the Oversight Board to establish a national advisory board and at least six regional advisory boards to advise it and the RTC, respectively, about the disposition of real property assets of certain institutions under RTC conservatorship or receivership. Provides that any guarantees issued by the FSLIC after January 1, 1989, and before the enactment of this Act shall be assumed by the RTC. Authorizes the Oversight Board to remove the FDIC from its position as exclusive manager of the RTC under specified extraordinary circumstances. Requires the RTC to terminate by December 31, 1996, and establishes the FDIC as successor to RTC conservatorships or receiverships. Provides that upon RTC termination all its assets and liabilities shall be transferred to the FSLIC Resolution Fund. Sets forth conflict-of-interest guidelines. Directs the Comptroller General to examine and monitor all insolvent institution cases resolved by the FSLIC and to report their estimated costs to the Congress. Subtitle B: Resolution Funding Corporation - Amends the Federal Home Loan Bank Act to establish the Resolution Funding Corporation (REFCorp) (under the regulation of the Oversight Board) to provide funds for the Resolution Trust Corporation. Sets forth capitalization guidelines. Requires the Oversight Board to report annually to the President and the Congress regarding REFCorp's activities. Terminates REFCorp after the maturity and full payment of all obligations issued by it. Mandates an annual REFCorp audit by the Comptroller General. Grants the Financing Corporation new assessment authority against SAIF members in the same manner as exercised by the FDIC, with the approval of the FDIC Board of Directors. Prescribes the funding sources to be used by the Financing Corporation to make interest payments on obligations. Title VI: Thrift Acquisition Enhancement Provisions - Amends the Bank Holding Company Act of 1956 to allow bank holding companies to acquire any savings association with the approval of the Federal Reserve Board. Prohibits the Federal Reserve Board from imposing any restrictions on transactions between a savings association and its holding company affiliates other than those restrictions presently imposed under the Federal Reserve Act ("Tandem restrictions"). Amends the Bank Holding Company Act of 1956 to cite additional circumstances in which certain companies with passive investments in grandfathered banks shall lose their exemption from treatment as non-bank holding companies. Amends the Depository Institution Management Interlocks Act to prescribe guidelines under which savings and loan holding companies may purchase a minority stock interest in undercapitalized savings associations. Title VII: Federal Home Loan Bank System Reforms - Subtitle A: Federal Home Loan Bank Act Amendments - Amends the Federal Home Loan Bank Act to establish the Federal Housing Finance Board as an independent agency in the executive branch to supervise the Federal home loan banks. Outlines the Board's responsibilities and subjects it to an audit by the Comptroller General. Establishes an Office of Inspector General for the Board. Abolishes the Federal Home Loan Bank Board (FHLBB). Repeals the limitation placed on: (1) the lawful contract interest rate receivable by Federal Home Loan Bank member and non-member borrowers; and (2) the interest rate payable on demand accounts by financial institutions under the Federal Home Loan Bank Board's jurisdiction. Mandates that a specified number of Board-appointed Federal home loan bank directors be chosen from certain consumer and community activist organizations. Prohibits directors of any Federal home loan bank from serving as officers of any such bank, or from holding any interest in any Federal home loan bank members. Authorizes Federal home loan banks to make loans to the FDIC for the use of the SAIF. Makes such loans a direct liability of the SAIF. Authorizes the Federal Housing Finance Board to assess Federal home loan banks semiannually to provide for payment of the Board's estimated expenses. Mandates that each Federal home loan bank: (1) establish a Community Investment Program and an Affordable Housing Program to promote community-oriented mortgage lending and long-term low- and moderate-income housing at subsidized interest rates; and (2) establish an Advisory Council to advise it on low- and moderate-income housing needs. Requires annual status reports to the Congress regarding such housing programs. Sets forth transfer procedures for Federal Home Loan Bank employees. Subtitle B: Federal Home Loan Mortgage Corporations - Amends the Federal Home Loan Mortgage Corporation Act to declare that the purpose of the Federal Home Loan Mortgage Corporation (FHLMC) is to: (1) provide stability in the secondary home mortgage market; (2) respond to the private capital market; and (3) provide increased liquidity of mortgage investments and expedited distribution of home mortgage financing investment capital. Modifies the structure of the Board of Directors and establishes an interim Board of Directors for a designated period. Confers general regulatory power over the Corporation upon the Secretary of Housing and Urban Development. Authorizes such Secretary to require that a portion of the corporation's mortgage purchases be related to the national goal of providing low- and moderate-income housing with reasonable economic return to the Corporation. Outlines Corporation operations. Subjects Corporation mortgage transactions to a GAO audit. Subtitle C: Technical and Conforming Amendments - Sets forth technical and conforming amendments to related statutes. Title VIII: Bank Conservation Act Amendments - Amends the Bank Conservation Act to prescribe guidelines authorizing the Comptroller of the Currency to appoint conservators for banks, including the appointment of the FDIC as conservator. Title IX: Regulatory Enforcement Authority and Criminal Enhancements - Subtitle A: Expanded Enforcement Powers, Increased Penalties, and Improved Accountability - Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to define the personnel liable for civil and criminal penalties for participating with knowing or reckless disregard with respect to: (1) any violation of any law or regulation; (2) any breach of fiduciary duty; or (3) any unsafe or unsound practice likely to cause an adverse effect upon an insured depository institution. Enhances the enforcement powers of banking regulatory agencies to include the authority to: (1) require restitution, reimbursement, indemnification, or guarantee against loss; (2) restrict the institution's growth; (3) dispose of any loan or asset; (4) rescind agreements or contracts; (5) require the employment of qualified personnel; (6) place restrictions upon an institution's activities; (7) apply enforcement actions to savings and loan affiliates and entities; (8) issue temporary orders with respect to incomplete or inaccurate recordkeeping by an insured financial institution; and (9) remove or prohibit certain personnel from engaging in banking activities on an industrywide basis. Sets forth a limitations period for enforcement proceedings against such personnel after separation from banking service. Establishes a tiered schedule of increased civil money penalties for violations by insured financial institutions or their personnel. Establishes a criminal penalty for participation in the affairs of either a bank holding company or a savings and loan holding company by individuals who are prohibited from engaging in the affairs of a financial institution. Increases the civil penalties for non-compliance with reporting requirements. Authorizes the FDIC to take enforcement actions against savings associations if the DOTS has failed to take such action after being requested by the FDIC. Requires banking regulatory agencies to publicly disclose final enforcement orders (or modifications thereof). Requires insured depository institutions (including depository institution holding companies) to notify bank regulatory agencies before appointing senior executive personnel. Authorizes agencies to disapprove such appointments. Requires Federal banking agencies and the National Credit Union Administration to report to the Congress the findings of a joint task force feasibility study regarding the delegation of investigation and enforcement authority to regional or district offices. Requires annual agency reports to the Congress on all enforcement actions. Amends the Federal Credit Union Act to mandate an outside, independent audit of insured credit unions experiencing certain deficiencies. Subtitle B: Termination of Deposit Insurance - Amends the Federal Deposit Insurance Act to revise termination procedures for FDIC deposit insurance, and to authorize the temporary suspension of such insurance if the capital assets of an insured depository institution are determined to be deficient by the FDIC. Sets forth special rules for savings associations under which goodwill must be included in the determination of tangible capital to the extent that it is considered a component of capital under the Home Owner's Loan Act. Subtitle C: Improving Early Detection of Misconduct and Encouraging Informants - Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to mandate that insured depository institutions furnish independent auditors with specified information. Provides employment protection for financial institution employees who report banking violations to the appropriate authorities. Authorizes such employees to file a wrongful discharge action in Federal district court and to seek employment protection remedies. Subtitle D: Right to Financial Privacy Act - Amends the Right to Financial Privacy Act to specify that the exceptions to the requirements of such Act apply to supervisory agencies of any financial institution, holding company, or any subsidiary of a financial institution or holding company. Specifies that such exceptions extend to: (1) any supervisory agency of financial records or information in the exercise of its supervisory regulatory or monetary functions, including conservatorship or receivership functions; (2) the Federal Reserve or any Federal Reserve bank in the exercise of its authority to extend credit to depository institutions and others; and (3) the RTC in the exercise of its conservatorship, receivership, or liquidation functions. Prohibits a financial institution which has been served a grand jury subpoena relating to possible crimes against financial institutions or regulatory agencies from notifying any person named in the subpoena about the existence or contents of any subpoena or any information that has been furnished to the grand jury in response to that subpoena. Authorizes the Securities and Exchange Commission to exchange customer record information with banking regulatory agencies. Subtitle E: Civil Penalties for Violations Involving Financial Institutions - Establishes maximum civil penalties for specified violations involving financial institutions. Requires the Attorney General to establish the right to recovery by a preponderance of the evidence. Subtitle F: Criminal Law and Procedure - Amends the Federal criminal code to increase the criminal penalties for specified criminal offenses affecting financial institutions. Increases the statute of limitations pertaining to such crimes from five years to ten years. Directs the U.S. Sentencing Commission to promulgate guidelines for a substantial period of incarceration for violations that substantially jeopardize a federally insured financial institution. Establishes a criminal penalty for the disclosure by financial institution personnel to their customers that they are targets of a grand jury records subpoena if the intent of such disclosure is the obstruction of justice. Provides for civil forfeiture and criminal forfeiture of any property derived from proceeds traceable to specified crimes affecting federally insured financial institutions. Amends the Federal criminal code to allow the disclosure of certain matters occurring before a grand jury to certain Government attorneys to assist in the enforcement of Federal criminal or civil law and this Act. Allows certain other disclosures when permitted by a court. Directs the Department of Justice to create regional offices of its Fraud Section in specified locations in Texas. Requires the Comptroller General to report to the Congress on the need for additional regional offices. Authorizes appropriations for: (1) the Department of Justice to investigate and prosecute financial institution-related offenses; and (2) the Federal courts systems to process the caseload generated by this Act. Title X: Studies of Federal Deposit Insurance, Banking Services, and the Safety and Soundness of Government-Sponsored Enterprises - Requires the Secretary of the Treasury to study and report to the Congress on the Federal deposit insurance system. Requires the Board of Governors of the Federal Reserve System to report annually to the Congress the results of an annual survey of retail banking services by insured financial institutions and the fees charged for them. Requires the Comptroller General to report to the Congress the results of a study of: (1) certain deposit insurance issues; and (2) the risks undertaken by all government-sponsored enterprises and the appropriate capital requirements for such enterprises. Title XI: Real Estate Appraisal Reform Amendments - Amends the Federal Financial Institutions Examination Council Act of 1978 to establish the Appraisal Subcommittee to monitor: (1) State and Federal certification and licensing of appraisers involved in federally related transactions; and (2) the procedures and activities of the Appraisal Foundation. Requires the Subcommittee to submit an annual status report to the Congress and to maintain a national registry of State licensed appraisers eligible to perform appraisals in federally related transactions. Mandates that each State whose appraiser certification and licensing program complies with this Act transmit to such Subcommittee an annual roster of appraisers eligible to conduct federally-related transactions. Sets forth a time frame within which each Federal financial institutions regulatory agency and the Resolution Trust Corporation must prescribe real estate appraisal criteria for federally-related transactions under their jurisdiction. Establishes a civil penalty for financial institutions and specified Federal entities that knowingly obtain appraisal services for a federally-related transaction from a person who is neither State certified nor licensed. Directs the appraisal Subcommittee to report to the Congress the results of studies regarding: (1) the sufficiency of real estate data to permit appraisers to estimate property values properly in federally-related transactions; and (2) the feasibility of extending the appraisal provisions of this Act to personal property in connection with Federal financial and public policy interests. Title XII: Miscellaneous Provisions - Requires the Comptroller General to report to the Congress the results of a study regarding the structure and condition of the credit union system. Directs the Secretary of the Treasury to report to the Congress regarding methods for increasing the use of minority banks, women's banks and limited income credit unions as depositories or financial agents of Federal agencies. Establishes the Credit Standards Advisory Committee to review and monitor: (1) the credit standards and lending practices of insured depository institutions; and (2) the supervision of such standards and practices by Federal financial regulators. Requires the Committee to report annually to certain congressional committees regarding its activities and its recommendations to Federal financial regulators. Directs the Secretary of the Treasury to report to the Congress the results of a study regarding the manner in which Resolution Funding Corporation bonds and other U.S. Government securities may benefit small investors and increase their participation in U.S. securities offerings. Amends the Home Mortgage Disclosure Act of 1975 to mandate that the itemization of loan data include the number and dollar amount of mortgage loans involving mortgagors or mortgage applicants grouped according to income level, racial characteristics, and gender. Amends the Community Reinvestment Act of 1977 to mandate that each Federal depository institution regulatory agency, upon concluding its examination of an insured depository institution, evaluate the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods. Requires such evaluations to contain public and confidential sections. Subjects all entities and persons performing functions under this Act, with specified exceptions, to the Comptroller General's auditing powers. Requires each appropriate Federal banking agency to establish uniform accounting standards to be used for determining the capital ratios of all federally insured depository institutions, and to report annually to certain congressional committees regarding any discrepancies between the capital standards used by Federal regulatory banking agencies. Applies Federal equal employment opportunity law to all Federal depository institution regulatory agencies. Amends the Federal Credit Union Act to establish guidelines under which the National Credit Union Administration Board shall exercise its powers as successor conservator or liquidating agent of an insolvent credit union. Amends the Federal Financial Institutions Examination Council Act to direct the Financial Institutions Examination Council to: (1) develop and administer risk management training seminars; and (2) report to the Congress the results of a feasibility study regarding the establishment of a formalized risk management training program designed to lead to the certification of Risk Management Analysts. Amends the Bank Holding Company Act of 1956 regarding cross-marketing restrictions to permit an affiliate of a grandfathered nonbank bank to cross-market its products and services with those of the bank if the Federal Reserve Board has determined that the affiliate's products and services are permissible. Mandates that specified agencies report to the Congress regarding loan discrimination practices. Title XIII: Participation by State Housing Finance Authorities and Nonprofit Entities - Authorizes State Housing Finance Authorities and certain non-profit entities to purchase mortgage-related assets from the Resolution Trust Corporation, or from institutions for which the FDIC is acting as conservator or receiver. Requires the net income attributable to the ownership of such assets to be invested in low- and moderate-income housing activities. Title XIV: Tax Provisions - Amends the Internal Revenue Code to move up the repeal date of certain tax rules for troubled financial institutions from December 31, 1989, to May 10, 1989. Directs the Secretary of the Treasury to promulgate regulations with respect to the tax treatment of financial institutions receiving Federal financial assistance. Exempts the Resolution Trust Corporation and the Resolution Funding Corporation from Federal income tax liability. Directs the Secretary of the Treasury to report annually to certain congressional committees on: (1) transactions in which Federal financial assistance is provided; and (2) the results of a study of the financial soundness of the activities of all Government-sponsored enterprises and the impact of their operations upon Federal borrowing.

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 - Title I: Purpose - Sets forth the purposes of this Act. Title II: Federal Deposit Insurance Corporation Authorities and Responsibilities - Amends the Federal Deposit Insurance Act to require the Federal Deposit Insurance Corporation (FDIC) to insure deposits held at savings associations. Increases the membership of the FDIC's Board of Directors from three to five members, one of whom shall be the Chairman of the Office of Savings Associations (COSA) (a position established by this Act). Outlines the treatment of certain insured accounts held by savings associations covered by this Act. Declares COSA to be the appropriate Federal banking agency for cases involving a savings association or a savings and loan holding company. Includes within the insurance purview of this Act all savings associations accounts insured by the Federal Savings and Loan Insurance Corporation (FSLIC) immediately before enactment of this Act. Requires the appropriate Federal banking agency to submit for FDIC comment any application by a financial institution to commence or resume the business of banking. States that a State financial institution resulting from the conversion of an insured Federal financial institution shall continue as an insured financial institution. Outlines the procedure under which Federal savings associations may apply for insured status. Establishes an insurance fee to be paid to the FDIC by noninsured financial institutions which become FDIC-insured. Requires that such fee be credited to either the Bank Insurance Fund (BIF) or to the Savings Association Insurance Fund (SAIF). Prohibits any insured financial institution from participating in any conversion transaction which would result in a change of membership from one such Fund to the other without prior FDIC consent. Cites circumstances under which the FDIC may provide such consent. Prescribes guidelines for the imposition by the FDIC of exit and entry fees to prevent the dilution of either BIF or SAIF as the result of an approved conversion transaction. Provides that whenever the FDIC incurs a loss related to the default or threatened default of an insured financial institution, any other commonly-controlled insured financial institution is liable to the FDIC and must reimburse it upon request. Sets forth compensation and loss review guidelines. Imposes a five-year moratorium during which BIF and SAIF members are not liable to the FDIC for default-related losses caused by the other Fund's members. Includes among insurability factors to be considered by the FDIC when evaluating applications for insurance coverage the risk presented to either the BIF or the SAIF. Authorizes the FDIC to require insured financial institutions to file additional reports for insurance purposes. Directs the FDIC to set annual assessment rates for insured financial institutions. Mandates that the rates for BIF members be set independently from those for SAIF members. Prescribes an assessment rating scheme, with a reserve ratio that may range from 1.25 up to 1.65 percent of insured accounts under specified circumstances. Requires any assets in excess of 1.25 percent of insured accounts to go into a supplemental account. Grants the FDIC the same power to examine State savings associations and insured savings associations for insurance purposes as it presently possesses with respect to insured banks. Establishes the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) whose funds may not be commingled. Dissolves the Permanent Insurance Fund and transfers its assets and liabilities to the BIF. Mandates deposit into the BIF of all assessments due from BIF members. Makes similar provisions for amounts assessed of SAIF members, with the exception of certain assessments required for the Financing Corporation or the Resolution Funding Corporation. Prohibits SAIF assessments from being provided to the FSLIC Resolution Fund after a specified date. Directs the Secretary of the Treasury (the Secretary) to make payments to the SAIF according to a prescribed payment schedule until its reserve ratio reaches a designated ceiling. Requires the Secretary to make additional payments to the SAIF to ensure that its minimum statutory net worth is met. Authorizes appropriations without fiscal year limitations for such purpose. Declares that funds borrowed by the FDIC for SAIF use shall be a direct liability of the SAIF, and subject to certain limitations. Revises the authorities granted the FDIC as receiver or conservator of a financial institution in default. Confers upon the FDIC all receivership powers previously held by the FSLIC. Exempts certain market-sensitive contracts from the FDIC's right of repudiation during a conservatorship or receivership. Prescribes guidelines for the transfer of assets and liabilities of a financial institution under such a conservatorship or receivership. Revises the receivership powers granted the FDIC with respect to Federal and State financial institutions. Provides that if COSA appoints a conservator or receiver under the Home Owners' Loan Act of 1933 with respect to a savings association the Resolution Trust Corporation shall be appointed for a three year period following enactment of this Act, and that the FDIC shall be appointed thereafter. Grants the FDIC the power to appoint itself as sole conservator or receiver of a State savings association if either the FDIC or the Resolution Trust Corporation makes specified determinations. Mandates that all payments of insured deposits made by the FDIC on account of either a BIF member or a SAIF member shall be made only from the member's Fund. Revises the FDIC's subrogation rights to include insurance payments made to depositors of all financial institutions within its purview (currently, such rights apply only to national banks). Revises the operating guidelines for bridge banks to include within their purview failed savings financial institutions. Establishes a claims valuation and review scheme for creditors of a defaulting financial institution who are not its insured depositors. Permits an FDIC action for damages against directors or officers of a financial institution for gross negligence or intentionally tortious conduct, as determined by State law. Establishes the FSLIC Resolution Fund to be separately managed and maintained by the FDIC, and not commingled. Transfers all FSLIC assets and liabilities exclusively to the Fund, and precludes their consolidation with either the BIF, the SAIF, or the FDIC. Sets forth a prioritized funding scheme. Provides for backup funding from the Treasury in the event that such prioritized scheme is insufficient to satisfy the Fund's liabilities. Limits any judgment resulting from certain FSLIC-related transactions to the assets of the FSLIC Resolution Fund. Dissolves the Fund upon satisfaction of all debts and liabilities and the sale of all assets acquired in case resolutions. Requires that any remaining funds be covered into the Treasury. Directs the FDIC to report annually to the Congress and the President regarding the Fund's financial status. Mandates an annual Fund audit. Outlines a secondary reserve scheme to be available to the FDIC only to the extent that the FSLIC Resolution Fund is insufficient to cover FDIC losses. Mandates that the funds held in the BIF, the SAIF, or the FSLIC Resolution Fund be invested in U.S. or federally-guaranteed obligations. Mandates that legal proceedings to which the FDIC becomes a party due to the exercise of its authorities be held in abeyance for a designated period upon FDIC request. Directs the FDIC, when calculating the cost of assistance to insured financial institutions in default, to include: (1) its immediate, long-term, and contingent liabilities; and (2) Federal tax revenues which would be foregone. States that the transfer of any assets or liabilities associated with any trust business of an insured financial institution in default is effective without State or Federal approval. Requires that assistance payments made to insured financial institutions in default be made: (1) from the BIF in case of payments made to such Fund's member; or (2) from the SAIF or the Resolution Trust Corporation in the case of SAIF members. Revises the guidelines for FDIC-assisted emergency interstate acquisitions. Prescribes guidelines for FDIC authorization of mergers, consolidations, transfers, and acquisitions of savings associations in default by other savings associations or insured banks. Increases the borrowing authority of the FDIC, and authorizes its use for either the BIF or the SAIF. Restricts the State and local tax liability of the FDIC by virtue of its role as receiver or conservator of an insured financial institution in default. Precludes the FDIC from incurring a financial liability under a guarantee or obligation with respect to either the BIF or the SAIF if the estimated cost of it would reduce the net worth of the respective Insurance Fund to less than zero. Subjects the Corporation's borrowing authority to the approval of the Secretary of the Treasury. Pledges the full faith and credit of the United States with respect to all liabilities incurred by the BIF and the SAIF. Requires the FDIC to make: (1) annual status reports to the Congress regarding the BIF, the SAIF, and the FSLIC Resolution Fund; (2) quarterly fiscal reports to the Secretary of the Treasury regarding its financial operations and forecasts; (3) a risk-based premium assessment report to the Congress by a specified deadline; and (4) recommendations to the Congress regarding deposit insurance pass-through options. Directs the FDIC (together with the Department of Justice and the Department of the Treasury) to report to the Congress the results of a study regarding liability insurance and financial institution surety bonds for directors and officers of insured financial institutions. Requires signs and logos displayed by an insured financial institution to contain specified information only. Requires: (1) prior FDIC written approval of a merger transaction if the acquiring, assuming, or resulting bank is to be a State nonmember insured bank (with specified exceptions); and (2) prior written approval of the Chairman of the Office of Savings Associations if the acquiring, assuming, or resulting institution (in a merger transaction) is to be a savings association. Requires an insured State financial institution to obtain prior FDIC consent before retiring or reducing its capital assets or liabilities (with specified exceptions). Subjects the activities of insured savings associations and their subsidiaries to the jurisdiction and oversight powers of the FDIC and the COSA. Authorizes the FDIC to determine whether such activities are incompatible with deposit insurance. Precludes certain unindentifiable intangible assets from being included in a financial institution's capital compliance calculations. Prescribes guidelines under which the investment activities of State-chartered savings associations must either conform to investment activities of federally-chartered savings associations, or obtain FDIC approval. Sets forth guidelines under which insured financial institutions may make loans secured by real property. Includes State savings associations within the FDIC's non-discrimination policy. Amends the Federal Deposit Insurance Act to prohibit: (1) a troubled financial institution from using brokered deposits unless it receives a waiver from the FDIC upon a finding that acceptance of them does not constitute an unsafe or unsound business practice; and (2) contracts between a financial institution and a vendor on certain deposits or purchases of stock or assets not directly related to the vendor's products or services, if such conditions have an anticompetitive effect on or adversely affect the health or safety of such institution. Directs the General Accounting Office to study and report to specified congressional committees on the contracting practices among third-party vendors and insured financial institutions, especially regarding any questionable contract provisions that tend to erode financial integrity and soundness by allowing the artificial inflation of capital or divestiture of troublesome assets. Title III: Chairman of the Office of Savings Associations - Amends the Home Owners' Loan Act of 1933 to grant the Chairman of the Office of Savings Association general supervisory powers over the operation and regulation of savings associations. Directs the Chairman to prescribe uniform savings association accounting and disclosure standards which incorporate the same principles used to determine compliance with the rules and regulations issued by Federal banking agencies. Mandates that the standards governing savings associations' operations be at least as stringent as those of the Office of the Comptroller of the Currency. Prohibits savings associations from participating in lottery-related activities. Sets guidelines under which a savings association may override State usury laws. Directs the Chairman to establish rules governing the selection of independent auditors by savings associations and service corporations and the performance of auditing services. Establishes an Office of Savings Associations in the Department of the Treasury. Terminates the Federal Home Loan Bank Board and transfers its powers and authorities to the Chairman. Reserves for the Chairman those functions of the Federal Home Loan Bank Board and its Chairman which have not been expressly transferred to either the FDIC, the Resolution Trust Corporation, or the Federal Home Loan Bank Agency. Requires the Chairman of the Federal Home Loan Bank System to report annually to the Congress, and to send it copies of certain communications with the President and the Office of Management and Budget. Directs the Chairman to prescribe liquidity regulations governing the amount of assets which savings associations and Federal Home Loan Bank members must maintain. Authorizes the Chairman to: (1) assess a penalty for noncompliance with liquidity requirements; and (2) reduce or suspend liquidity requirements under specified circumstances. Empowers the Chairman to issue charters and to prescribe regulations governing the establishment and operation of Federal savings and loan associations and savings banks as sources of housing credit. Outlines the lending and investment parameters of housing credit. Outlines the lending and investment parameters for such institutions, including the Chairman's authority to: (1) appoint the FDIC as receiver or conservator under specified circumstances; (2) prescribe rules for institutions in conservatorship or receivership; and (3) monitor such institutions' compliance with monetary transaction recordkeeping requirements. Confers Federal Home Loan Bank membership status automatically upon each Federal savings association upon its incorporation. Authorizes the Secretary of the Treasury to subscribe for preferred shares in Federal savings associations. Prescribes guidelines under which a Federal savings association may convert into a Federal savings bank, a Federal savings and loan association, or into a State savings association. Permits subscription by the Secretary of the Treasury for full paid income shares in Federal savings associations. Cites circumstances under which a savings association or Federal Home Loan Bank member may: (1) be a depository of public money; (2) act as agent for a Federal instrumentality; (3) act as trustee for certain retirement accounts; (4) act as trustee in certain fiduciary capacities; (5) surrender its Federal charter; and (6) have its powers revoked by the Chairman. Sets forth a conversion mechanism whereby: (1) the Chairman may authorize the conversion of a BIF State-chartered savings bank into a Federal savings bank; (2) certain insured savings banks may be converted or chartered as Federal stock savings banks upon FDIC determination that to do so would improve their financial condition; and (3) certain FDIC insured mutual savings institutions may be converted or chartered as Federal stock savings institutions. Prohibits a savings association from conditioning its services to a customer upon certain additional requirements beyond the usual industry practice (tying arrangements). Limits the circumstances under which a Federal savings association may operate an out-of-State branch. Directs the Chairman to establish minimum capital requirements for savings associations. Requires the Chairman to establish uniform capital standards for savings associations which are as stringent as those for national banks (including the leverage ratio and risk-based capital standards). Includes goodwill as a component of capital. Requires an association to maintain tangible capital (excluding goodwill) equal to 1.5 percent of its total assets. Sets a deadline for standards implementation. Applies the same lending limitations to savings associations as presently apply to national banks. Requires each savings association to report its financial status to the Chairman. Authorizes appropriations for the Chairman to develop State or federally chartered local thrift and home-financing institutions. Grants the Chairman the same regulatory investigative and operational powers over certain District of Columbia building and loan associations that the Chairman has with respect to Federal savings and loan associations. Precludes the Chairman from: (1) causing District of Columbia associations to become Federal savings and loan associations; or (2) imposing upon such District associations the same regulations that are imposed upon Federal savings and loan associations. Authorizes the Chairman to assess certain user's fees upon savings associations to cover the expenses and supervisory activities of the Office of Savings Associations. Details the regulatory parameters within which savings and loan holding companies must operate. Exempts certain foreign savings and loan holding companies and bank holding companies registered with the Federal Reserve System from such regulatory framework. Requires the Chairman's prior approval with respect to acquisitions (including interstate acquisitions) by a savings and loan holding company. Sets forth civil and criminal penalties for certain prohibited acts including: (1) holding or exercise of proxy votes in a mutual savings association by any person (including a savings and loan holding company) that already controls more than 25 percent of voting shares; and (2) control of a non-subsidiary savings association by such person. Outlines the requirements which State savings banks and cooperative banks must meet in order to attain qualified thrift lender status and be deemed savings associations. Restricts the business activities of a savings association which fails to maintain such status, and mandates that its charter be converted to a bank charter. Subjects a company that controls such a savings association to all the terms of the Bank Holding Company Act of 1956 as if it were a bank holding company. Subjects to the tying restrictions of the Home Owners' Loan Act of 1933: (1) a State-chartered savings association that is a subsidiary of a savings and loan holding company; and (2) a savings and loan holding company and its affiliates. Outlines conditions under which a savings association operating in mutual form may reorganize as a mutual holding company, subject to the approval of COSA. Subjects each savings association to the restrictions of the Federal Reserve Act with respect to: (1) transactions with affiliates; (2) loans and extensions of credit by a savings association to selected executives and any person controlling more than ten percent of any class of voting securities. Grandfathers certain savings associations and insured institutions participating in certain capital recovery plans as long as they adhere to such plans and report regularly to the Chairman of the Federal Home Loan Bank System. Amends the Home Owners' Loan Act of 1933 to revise the standards under which savings associations attain qualified thrift lender status (a measure of a thrift institution's involvement in housing finance). Sets forth a transitional period during which thrift institutions may continue to purchase mortgages from a mortgage-banking affiliate. Title IV: Dissolution and Transfer of Functions, Personnel, and Property of Federal Savings and Loan Insurance Corporation - Terminates the FSLIC and transfers its functions to either the FDIC or the Resolution Trust Corporation. Retains FSLIC rules (including those of the Federal Home Loan Bank Board) and places them under the enforcement purview of either the FDIC or COSA. Provides for the allocation of enforcement authority between the FDIC and COSA. Grants the FDIC rulemaking and enforcement authority over savings associations whose activities seriously threaten either the SAIF or the BIF. Sets forth an FSLIC personnel transfer scheme. Divides between COSA and the FDIC all personnel and property pertaining to the FSLIC and the Federal Home Loan Bank Board. Requires the FSLIC to provide a final accounting of its finances and operations to the Congress, the Secretary of the Treasury, and the Director of the Office of Management and Budget immediately before its dissolution. Title V: Financing for Thrift Resolutions - Subtitle A: Resolution Trust Corporation - Amends the Federal Home Loan Bank Act to establish the Resolution Trust Corporation (RTC) under the direction of the Oversight Board to: (1) resolve all FSLIC cases for which a liquidating receiver or conservator was appointed within a specified period; (2) manage the assets of the Federal Asset Disposition Association; and (3) make the most economical use of RTC financial activities. Places RTC authorities and limitations within the parameters of the FDIC Act, and precludes it from obligating either the FDIC or its funds. Proclaims the RTC as liquidating conservator or receiver with respect to any: (1) institution for which such an agent was appointed by the Federal Home Loan Bank Board during a certain period; and (2) SAIF member for which the FDIC or COSA appoints such an agent during a designated period. Establishes the Oversight Board which shall serve as the RTC board of directors. Requires the RTC to report to the Oversight Board the results of a statutorily mandated review of: (1) all insolvent institution cases resolved by the FSLIC within a specified time frame; and (2) all means of reducing costs under existing FSLIC agreements relating to such cases. Directs the RTC to dissolve and wind up the affairs of the Federal Asset Disposition Association (FADA). Terminates the RTC five years after the date of enactment of this Act. Directs the RTC to: (1) assume certain guarantees issued by the FSLIC; (2) document its decisions regarding the solicitation and selection of offers for assisted acquisitions and the disposition of assets of institutions under its purview; (3) submit annual and semiannual reports to the President and the Congress regarding its operations and financial status; (4) maintain a list of foreclosed properties of particular historical, environmental, or recreational value (and provide it to the Secretary of Interior, the Secretary of Agriculture, and to appropriate public agencies for possible acquisition); (5) establish up to 12 Regional Advisory Board districts to assist the RTC to dispose of acquired assets in the most economical manner; and (6) establish valuation methods to minimize the impact of real estate sales in depressed real estate markets. Subjects RTC employees and independent contractors to conflict of interest standards no less stringent than those applicable to FDIC personnel. Subtitle B: Resolution Funding Corporation - Amends the Federal Home Loan Bank Act to establish the Resolution Funding Corporation (RFC) to provide funding for the RTC. Places RFC management under a three-member Directorate drawn from specified Federal Home Loan Bank senior executives supervised by the RTC Oversight Board. Prescribes guidelines under which the Federal Home Loan Banks must capitalize the RFC, including purchase of its non-voting capital stock. Requires the RFC to submit an annual status report to the President and the Congress. Terminates the RFC after the maturity and full payment of all obligations issued by it. Revises guidelines for the assessment authority of the Financing Corporation to mandate that it assess each SAIF member in the same manner as the FDIC assesses each SAIF member. Grants the Financing Corporation first priority to make such assessments. Revises the guidelines for Federal Home Loan Bank reserves to prohibit the payment of any dividends by a bank whose reserve accounts have fallen below 100 percent of its paid-in capital until its reserves have been restored to such percentage. Title VI: Thrift Acquisition Enhancement Provisions - Amends the Bank Holding Company Act of 1956 to authorize the Federal Reserve Board to approve savings association acquisitions by a bank holding company. Prohibits the Board from imposing restrictions on transactions between a savings association and its holding company affiliates (except as required under specified Federal Reserve Act provisions). Amends the Home Owners' Loan Act of 1933 (as amended by this Act) to prohibit a savings and loan holding company from acquiring more than five percent of the voting shares of a non-subsidiary savings association or a non-subsidiary savings and loan holding company. Title VII: Federal Home Loan Bank System Reforms - Subtitle A: Federal Home Loan Bank Act Amendments - Amends the Federal Home Loan Bank Act to establish as an independent agency in the executive branch the Federal Home Loan Bank Agency (the Agency) to supervise Federal Home Loan Banks (FHLBs) to ensure that they: (1) implement their housing finance mission; (2) remain adequately capitalized and able to raise funds in the capital markets; and (3) operate safely and soundly. Requires the Agency to report annually to the Congress. Declares certain insured credit unions eligible to become members or non-member borrowers of an FHLB. Precludes an insured financial institution which was not a member as of January 1, 1989, from becoming a member if: (1) it has not attained qualified thrift lender status; or (2) its financial condition or practices are adjudged unsound by the Agency. Authorizes the FHLBs to make loans to the FDIC for the use of the SAIF. Abolishes the Federal Savings and Loan Advisory Council (Thrift Advisory Council) and the Federal Savings and Loan Insurance Corporation Industry Advisory Committee. Provides that advances made by an FHLB must be based upon collateral that is sufficient to fully secure such advances. Mandates that all long term advances be made only for the purpose of providing funds for housing finance. Requires an FHLB at the time of loan origination, renewal, or advance to maintain a security interest in specified categories of collateral. Directs the Comptroller General to audit the Agency and FHLBs to determine their compliance with this Act. Subtitle B - Conforming Amendments - Makes technical and conforming amendments to relevant statutes. Title VIII: Bank Conservation Act Amendments - Amends the Bank Conservation Act to authorize the Comptroller of the Currency to appoint without notice or prior hearing a conservator (which may be the FDIC) of a financially troubled notice bank under specified conditions. Grants the Comptroller exclusive conservator-appointment authority for a bank. Sets forth circumstances under which the Comptroller may terminate a bank conservatorship. Presents general conservatorship guidelines. Title IX: Enforcement Authority Improvements - Enforcement Authority Improvements Act of 1989 - Subtitle A: Regulation of Financial Institutions - Amends the Federal Deposit Insurance Act to: (1) decrease from 120 days to 60 days the period during which an insured bank must correct business practices adjudged unsound by the the FDIC Board of Directors; (2) revise (from two years to from six months to two years) the period which a depositor's account remains insured after termination of a bank's insured status; and (3) authorize the FDIC to issue a temporary order suspending deposit insurance on deposits received by an insured financial institution adjudged to have no tangible capital under Federal banking agency guidelines. Directs the FDIC to include goodwill to a specified extent when determining the tangible capital of a savings association. Cites circumstances under which the FDIC may temporarily suspend the deposit insurance of a savings association which would be adjudged to have no tangible capital but for the inclusion of goodwill as a capital component. Requires the FDIC to make special examinations of such associations once every quarter. Authorizes the appropriate Federal banking agency to require a financial institution engaged in unsound business practices to implement specified remedies, including restitution and reimbursement. Authorizes such banking agency to: (1) limit the activities of such institution (including prohibiting or restricting its asset growth); and (2) issue a temporary cease and desist order whenever it determines that the institution's recordkeeping is so inaccurate as to prevent the agency from ascertaining the institution's financial condition. Revises the enforcement procedures for breaches of fiduciary duty, unsafe business activities, or violations of this Act and increases the civil and criminal penalties for such violations. Sets forth standards for the imposition of civil penalties in excess of $2,500 per day. Prohibits a financial institution from discriminating or discharging personnel reporting possible violations by it. Authorizes the FDIC to coordinate its enforcement actions with COSA. Precludes the FDIC from delegating its decisionmaking authority about enforcement actions. Subtitle B: Regulation by the Chairman of the Office of Savings Associations - Amends the Home Owners' Loan Act of 1933 to impose civil penalties upon savings associations which fail to file status reports, or file false or incomplete reports. Requires the written approval of COSA before an individual may either participate in the affairs of an SAIF member, or serve as an SAIF officer, if such individual has previously been prohibited by the FSLIC or the Federal Home Loan Bank Board from either voting for an officer or participating in the affairs of an FSLIC insured member. Subtitle C: Credit Unions - Amends the Federal Credit Union Act to authorize the National Credit Union Administration Board (the Board) to: (1) require an insured credit union engaged in certain unsound business practices to implement specified remedies (including restitution and reimbursement); (2) restrict such credit union's activities, including the growth of its assets; and (3) issue temporary cease and desist orders whenever it determines that the credit union's recordkeeping is so inaccurate as to prevent the Board from ascertaining the credit union's financial condition. Revises the enforcement procedures for breaches of fiduciary duty, unsafe business practices and violations of this Act. Increases the civil and criminal penalties for such violations. Prohibits a credit union from discriminating against or discharging personnel reporting possible violations to a regulatory authority. Prohibits a person convicted of dishonesty from participating in credit union affairs. Increases the civil penalties imposed upon a credit union for filing either non-timely or false status reports. Sets forth standards for the imposition by the Board of civil penalties exceeding $2,500 per day. Amends the Federal Credit Union Act to direct the Board of Directors of the National Credit Union Administration to prescribe audit standards requiring an outside, independent audit by a certified public accountant for any credit union for any fiscal year that it fails to conduct a satisfactory annual supervisory committee audit, or during which it has experienced persistent and serious record-keeping deficiencies. Subtitle D: Right to Financial Privacy Act - Amends the Right of Financial Privacy Act of 1978 to permit the disclosure of financial records to: (1) a supervisory agency exercising its conservatorship or receivership functions; (2) the Board of Governors of the Federal Reserve System (or any Federal Reserve Bank) in the exercise of its credit extension authority; or (3) the Resolution Trust Corporation in the exercise of its liquidation functions. Prohibits a financial institution on which a grand jury subpoena has been served regarding specified criminal violations from notifying the affected party about the existence or contents of the subpoena, or the information that it has furnished to the grand jury. Title X: Criminal Enhancements - Amends the Federal criminal code to increase the criminal penalties and impose civil penalties for designated financial institution offenses including: (1) receipt of commissions or gifts for procuring loans; (2) theft, embezzlement, or misapplication of funds; and (3) fraudulent activities. Sets forth a statute of limitations for financial institution offenses, and instructs the U.S. Sentencing Commission to promulgate specified minimum sentencing guidelines for such offenses. Sets forth civil and criminal forfeiture guidelines regarding offenses affecting a federally insured financial institution. Cites circumstances under which certain grand jury matters may be disclosed to Federal or State attorneys and in litigation proceedings. Authorizes appropriations for the Department of Justice for proceedings falling within the purview of this Act. Title XI: Federal Home Loan Mortgage Corporation - Federal Home Loan Mortgage Corporation Transition Act - Amends the Federal Home Loan Mortgage Corporation Act to revise the membership of the Board of Directors, including five members who shall be appointed by the President. Grants the Secretary of Housing and Urban Development (the Secretary) regulatory authority over the Corporation. Authorizes the Secretary to require that a reasonable portion of the Corporation's mortgage purchases be related to the national goal of providing adequate housing for low and moderate income families (with reasonable economic return to the Corporation). Requires the Secretary to report annually to the Congress regarding Corporation activities. Revises the Corporation's capitalization guidelines. Precludes the Corporation from imposing any charge or fee upon any mortgagee participating in a mortgage insurance program under the National Housing Act solely because of such status. Prescribes guidelines under which: (1) the Secretary of the Treasury may purchase obligations and securities of the Corporation; (2) securities evidencing the Corporation's debt may be issued; and (3) the Corporation may make financial commitments based upon collateralized mortgage obligations. Amends the Federal National Mortgage Association Charter Act to prohibit the Corporation from using its lending authority either to: (1) advance funds to a mortgage seller or originator on an interim basis using mortgage loans as collateral, pending the sale of mortgages in the secondary market; or (2) originate mortgage loans. Title XII: Participation by State Housing Finance Authorities and Nonprofit Entities - Authorizes State housing finance authorities and nonprofit entities to purchase mortgage-related assets from the Resolution Trust Corporation or from financial institutions with respect to which the FDIC is acting as receiver or conservator. Requires that the net income attributable to the ownership of such assets be invested in low and moderate income housing within the jurisdiction of such State housing finance authority or nonprofit entity. Title XIII: Study of Federal Deposit Insurance and Banking Regulation - Requires the Secretary of the Treasury to report to the Congress regarding the results of a study of the Federal deposit insurance system. Title XIV: Miscellaneous Provisions - Directs the Comptroller General to report to specified congressional committees regarding the Nation's credit union system. Amends the Federal Credit Union Act to direct the National Credit Union Administration Board to report to the Congress regarding the comparability of credit union regulator salaries with the compensation at other Federal bank regulatory agencies. Amends the Revised Statutes to direct the Comptroller of the Currency to: (1) report to the Congress regarding the compensation of employees of the Office of the Comptroller of the Currency; and (2) concurrently submit to the Congress any budget estimates or legislative recommendations made either to the President or the Office of Management and Budget. Precludes any Federal officer or agency from requiring the Comptroller to submit legislative commentaries prior to their submission to the Congress. Subjects all entities performing functions or activities under this Act to audit by the Comptroller General. Requires specified Federal entities falling within the purview of this Act to report to the Congress regarding the extent of discriminatory lending practices by mortgage lenders subject to their supervision or regulation. Applies a certain Executive Order relating to equal employment opportunity in the Federal Government to specified Federal lending agencies. Requires certain agencies under the purview of this Act to establish programs which solicit businesses owned by women or minorities, and to provide such businesses with opportunities to participate in their procurement programs. Directs the FDIC to submit to certain congressional committees an annual detailed status report regarding the Federal Deposit Insurance Fund. Mandates that specified Federal banking agencies establish uniform accounting standards to determine the capital ratios of all federally insured financial institutions. Amends the Bank Holding Company Act to revise the cross-marketing restrictions placed upon banks controlled by specified holding companies. Amends the Federal Financial Institutions Examination Council Act of 1978 to establish within the Council an Appraisal Subcommittee to: (1) monitor State and Federal appraisal standards for federally related transactions; (2) maintain a national registry of State licensed appraisers for federally related transactions; (3) report annually to the Congress regarding its activities; and (4) monitor the Appraisal Foundation. Authorizes appropriations. Authorizes the Subcommittee to collect registration fees from persons who perform appraisals in federally related transactions. Requires Federal financial institutions, regulatory agencies, and mortgage agencies to prescribe real estate appraisal standards for federally related transactions. Directs the Subcommittee to monitor State appraiser certifying and licensing agencies to determine consistency with this Act. Empowers the Subcommittee to reject a State's appraiser certifications or licenses. Provides for a temporary waiver of appraiser certification or licensing requirements for States having a scarcity of qualified appraisers. Requires a Federal agency (including the Subcommittee) to report any State certified or licensed appraiser who violates this Act. Subjects a financial institution to a civil penalty for knowingly engaging the services of an appraiser in a federally related transaction who is not State certified or licensed. Expresses the sense of the Senate that the House of Representatives should adopt and send to the Senate for consideration as part of this Act legislation to repeal certain tax rules for financial institutions, including: (1) the exclusion from income of payments made to financially troubled institutions by the FSLIC and the FDIC; (2) the granting of tax-free status to certain reorganizations of such institutions; and (3) the relaxation of certain loss carryover rules. Amends the Bank Holding Company Act of 1956 to revise the conditions under which certain bank holding companies which control grandfathered nonbank and certain savings association holding companies may own more than five percent of the shares or assets of other financial institutions (passive investments). Amends the Federal Savings and Loan Recapitalization Act to exempt from its moratorium on voluntary termination of FSLIC insured status a certain institution (First City Federal Savings Bank, Memphis, Tennessee) whose board of directors had decided to terminate such status before April 1, 1987, and whose deposit insurance had been in effect for less than one year as of such date. Title XV: General Provisions - Expresses the sense of the Congress that: (1) an 800-bed local correctional treatment facility be constructed in the District of Columbia at the earliest possible date; and (2) Mayor Barry and other District of Columbia officials be urged to move expeditiously with a crime containment program, including the construction of a local 800-bed prison and jail space.

Financial Institutions Reform, Recovery and Enforcement Act of 1989 - Title I: Purpose - Specifies the purposes of this Act, including regulatory reform, the establishment of an independent insurance agency to provide deposit insurance, and the provision of improved supervision and enhanced enforcement powers. Title II: Federal Deposit Insurance Corporation Authorities and Responsibilities - Amends the Federal Deposit Insurance Act to authorize the Federal Deposit Insurance Corporation (FDIC) to insure deposits held at savings associations as well as commercial banks. Increases the membership of the FDIC's Board of Directors from three to five members. Specifies that one of the additional two members shall be the Director of the Office of Thrift Supervision. Revises certain definitions for the purposes of the Federal Deposit Insurance Act. Specifies that the term "insured deposit" shall include any liability which constituted an "insured account" within the meaning of the National Housing Act prior to the enactment of this Act, provided certain conditions are met. Specifies that the Director of the Office of Thrift Supervision (DOTS) shall be considered the appropriate Federal banking agency in the case of a savings association or a savings and loan holding company. Includes within the definition of "savings association" any institution that was supervised by the Federal Savings and Loan Insurance Corporation (FSLIC) prior to the enactment of this Act, a Federal savings and loan association or Federal savings bank, or a building and loan, savings and loan, homestead association, or a cooperative bank organized and operated under State law, or a corporation that the FDIC considers to be operating substantially in the same manner as a savings and loan association. Provides that every FSLIC insured savings association shall continue to be insured by the FDIC without application or approval. Provides that whenever a financial institution files an application or notice for membership with, or to commence or resume business with, the appropriate Federal banking agency, such agency must provide such application to the FDIC for comment. Requires such agency to take the FDIC's comment into account in deciding whether to grant the application. Provides that certain State financial institutions shall continue as insured institutions. Allows any Federal savings association authorized to do business by the DOTS to become an insured financial institution upon the filing of an application with the FDIC together with a certificate issued by the DOTS, unless insurance is denied by the FDIC. Sets forth procedures for the FDIC to evaluate such an application. Specifies the factors to be considered in granting or denying insurance coverage. Requires the FDIC to notify the DOTS if such insurance coverage is denied, and to give specific reasons in writing for such denial. Requires every noninsured financial institution which becomes insured by the FDIC to pay any entrance fee prescribed by FDIC regulations. Requires that such fee be credited to either the Bank Insurance Fund (BIF) or the Savings Associations Insurance Fund (SAIF) depending on which fund the institution joins. Prohibits any insured financial institution from participating in any type of conversion transaction which would result in a change of membership from one such fund to the other without the approval of the FDIC. Places a five-year moratorium on the approval of such conversion transactions, except in limited circumstances. Requires financial institutions which participate in such conversion transactions to pay specified entrance and exit fees. Provides that whenever the FDIC incurs a loss in connection with the default of an insured financial institution, or in connection with providing assistance to an insured financial institution in danger of default, any other commonly-controlled insured financial institution shall be liable to the FDIC and on request shall reimburse the FDIC for any such loss. Specifies the method of calculating such liability. Sets forth procedures for imposing and collecting such liability. Limits the rights of any third parties in such proceedings. Provides that for a five-year period no BIF members shall be held liable for the default of a SAIF member and no SAIF members shall be held liable for the default of a BIF member. Defines "commonly-controlled" for purposes of determining such liability. Adds as a factor to be considered by the FDIC in evaluating applications for insurance coverage the risk presented to the BIF or the SAIF. Allows the FDIC, after reaching agreement with the other Federal banking agencies, to require insured financial institutions to file additional reports for insurance purposes. Requires the FDIC to set the assessment rate for insured financial institutions annually. Specifies that the annual assessment rate for BIF members shall be determined independently from the annual assessment rate for SAIF members. Prescribes the assessment rates for BIF members for 1989, 1990, and 1991 onward. Prescribes the assessment rates for SAIF members through 1990, for 1991 through 1993, and for 1994 onward. Allows the FDIC to raise or lower such assessment rates under specified circumstances. Limits any increase in the assessment rate to 50 percent over the net premium rate of the prior year. Specifies that such assessments shall be paid semiannually. Allows assessment credits to BIF members and SAIF members for years in which the ratio of the net worth of such funds to the value of insured deposits reaches a certain level. Extends the provisions of the Change in Bank Control Act to savings associations as well as banks. Permits insured savings associations to offset secondary reserves against assessed premiums. Requires the FDIC to consider the extent of a solvent savings association's low- to moderate-income housing loans before making a determination regarding the termination of its insurance. Grants the FDIC the same authority to examine insured savings associations and to insure the deposits held at savings associations as it presently has with respect to insured banks. Establishes two insurance funds (the Bank Insurance Fund (BIF) and the Savings Associations Insurance Fund (SAIF)) to be used by the FDIC to carry out the insurance purposes of this Act. Specifies that such funds are both to be operated and administered by the FDIC. Requires such funds to be separately maintained and not commingled. Specifies that the BIF shall consist of the assets of the Permanent Insurance Fund and all amounts assessed of BIF members. Specifies that the SAIF shall consist of all amounts assessed of SAIF members (which are not required for the Financing Corporation or the Resolution Funding Corporation pursuant to this Act) and of funds provided by the Secretary of the Treasury according to a specific schedule for FY 1991 through 1999. Authorizes the Secretary to provide additional amounts for such fund if the minimum net worth of the fund falls below a certain level. Authorizes appropriations for such funds. Authorizes the FDIC to borrow funds for the use of the SAIF. Provides that such borrowings shall be a direct liability of the SAIF and shall be subject to certain limitations. Revises and defines the authorities and duties of the FDIC as the receiver or conservator for insured Federal financial institutions and for insured State financial institutions. Specifies that all insurance payments made on account of a closed bank or insured branch of a foreign bank shall be made only from the Bank Insurance Fund and all payments made on account of a closed savings association shall be made only from the Savings Association Insurance Fund. Provides that when the FDIC pays insurance to a depositor, the FDIC shall be subrogated to the depositor's claim against the financial institution. (Such right of subrogation now applies only to national banks.) Revises and defines the authorities and duties of the FDIC in the establishment of bridge banks in cases of failed or failing financial institutions. Authorizes the FDIC to use such bridge banks in the case of failed or failing financial institutions as well as banks. Increases from one to three the number of times a bridge bank may be granted a one-year extension of its corporate existence. Revises procedures for the termination and dissolution of bridge banks. Sets forth the method and procedures for the valuation and determination of claims by third persons against financial institutions in default. Establishes the FSLIC Resolution Fund (Fund). Specifies that such Fund shall be managed by the FDIC and shall be separately maintained and not commingled. Transfers to such Fund the reserves and assets, debts, obligations, contracts, and other liabilities of the FSLIC existing on the date of the dissolution of the FSLIC. Provides that such Fund shall be funded by: (1) income generated on the assets transferred to it; (2) proceeds of the resolution of insolvent thrift institutions which became insolvent prior to December 31, 1988 (to the extent such funds are not required by the Resolution Funding Corporation); (3) the proceeds from borrowings by the Financing Corporation; and (4) assessments on SAIF members levied prior to December 31, 1991, and not required by the Financing Corporation or the Resolution Trust Corporation. Provides for additional funding by the Secretary of the Treasury from appropriated funds in the event such other funds are insufficient. Limits any judgment resulting from a civil action against the FSLIC or the FDIC to the assets of such Fund. Dissolves such Fund upon the satisfaction of all debts and liabilities and the sale of all assets acquired in case resolutions. Requires that any funds remaining in such Fund be covered into the Treasury. Requires that any funds held in either the BIF or the SAIF must be invested in U.S. Government obligations or in obligations guaranteed by the U.S. Government. Requires that the funds from the BIF and the SAIF be invested separately and not commingled. Allows the FDIC to request a 90-day stay of any legal proceedings to which it becomes a party due to its acquisition of any asset or in the exercise of certain authorities. Requires the FDIC, in determining whether to provide assistance to financial institutions, to consider: (1) the immediate and long-term obligations of the FDIC with respect to such assistance; and (2) the Federal tax revenues which would be foregone. Provides that transfers of assets or liabilities associated with any trust business may be effected by the FDIC in connection with any asset purchase transaction without any further State or Federal approval. Revises provisions relating to certain agreements against the interests of the FDIC. Specifies that the Board of Directors of the FDIC may act by a 75 percent vote (current law requires a unanimous vote) in order to override a State's objection to an assisted interstate acquisition of an insured financial institution in default having $500,000,000 or more in assets. Cites conditions which the Resolution Trust Corporation must consider when determining whether to provide monetary assistance upon the request of an SAIF member. Increases the borrowing authority of the FDIC from $3,000,000,000 to $5,000,000,000. Makes such borrowing authority subject to the approval of the Secretary of the Treasury. Limits any State or local tax penalties to which the FDIC may be subjected when acting as a receiver or conservator of a financial institution. Limits the borrowing of both the BIF and the SAIF to the extent such liability reduces the fund's net worth to less than zero. Cites exceptions. Requires the FDIC to report to the President and the Congress annually regarding its operations, activities, budget, receipts, and expenditures. (Current law requires an annual report regarding only the FDIC's operations.) Requires the FDIC to make quarterly reports to the Secretary of the Treasury with respect to the FDIC's financial operating plans and forecasts. Makes all insured financial institutions subject to the Bank Merger Act. Makes the DOTS the responsible agency with respect to mergers where the acquiring, assuming, or resulting institution is to be a savings association. Provides that all insured State financial institutions, other than State member banks or district banks, would be subject to the requirement of prior FDIC consent to the reduction of capital. Requires any insured savings association which establishes or controls a new company or elects to conduct any new activity to notify the FDIC and the DOTS. Requires such a savings association to deduct its investments in, and loans to, such company from its own capital for purposes of determining capital adequacy if the company is engaged in activities not permissible for a national bank. Grants the FDIC and the DOTS certain enforcement powers with respect to any company controlled by an insured savings association. Authorizes the FDIC to determine activities which are incompatible with deposit insurance. Revises the statement of the policy of nondiscrimination against State nonmember banks under the Federal Deposit Insurance Act to include State savings associations. Eliminates the requirement of nondiscrimination on account of an institution having capital stock of less than the amount required for Federal Reserve membership. Requires the FDIC to administer risk management training seminars for personnel dealing with insured financial institutions and to report to the Congress the results of a feasibility study regarding a Risk Management Analysts certification program. Prohibits a troubled financial institution (one which has not met its minimum capital standards) from increasing its deposit accounts through the services of a deposit broker (unless the FDIC determines that such deposit does not constitute an unsafe or unsound practice. Prohibits any insured savings association or its subsidiary from acquiring or retaining junk bonds (as defined). Title III: Savings Association Supervision Improvements - Amends the Home Owners' Loan Act of 1933 to establish the Office of Thrift Supervision and to specify its duties and responsibilities, with respect to the examination, supervision, and regulation of Federal savings associations. States that such authorities are intended to encourage such associations to maintain their role of providing credit for housing in a manner consistent with principles of safe and sound operation. Grants the FDIC general supervisory powers over State savings associations. Requires the DOTS to prescribe accounting and disclosure standards for savings associations. Provides that such standards shall incorporate generally accepted accounting principles to the same degree such principles are used to determine compliance with the rules and regulations of other Federal banking agencies. Requires that the rules, regulations, and policies of the DOTS and FDIC governing the operation of savings associations shall be no less stringent than those of the Comptroller of the Currency for national banks. Transfers specified provisions of the National Housing Act to the Home Owners Loan Act of 1933. Prohibits savings associations from participating in lotteries and related activities. Exempts from such proscription the performance of services for any State operating a lottery. Requires approval of the DOTS or the FDIC before a savings association may issue securities or guarantee definite maturity dates for them. Revises the guidelines for savings associations regarding their commercial lending practices and demand accounts. Includes among the grounds for an FDIC appointment of a receiver for an association: (1) substantially insufficient capital; and (2) an inability to pay debts or obligations on a timely basis. Cites circumstances under which the FDIC may appoint either itself or the Resolution Trust Corporation as conservator or receiver of an insured State savings association in coordination with the appropriate State officials. Requires the DOTS to consider the extent of a solvent savings association's low- to moderate-income housing loans before deciding to appoint a conservator or receiver. Authorizes stock to mutual conversions by savings associations subject to the approval of the FDIC or DOTS under certain circumstances. Requires the DOTS to establish for all savings associations capital standards that are no less stringent than those applied to national banks. Permits such standards to take relevant risks into account (risk-based capital standards). Mandates that such minimum capital standards require savings associations to maintain a three percent ratio of core capital to assets. Provides that such capital standards shall treat purchased mortgage servicing rights in the same manner as such rights are treated by the FDIC with respect to insured State non-member banks. Sets forth a transition period during which qualifying intangible assets may be included in the minimum core capital requirements subject to specified percentages. Permits certain supervisory goodwill and contributed mortgage servicing rights to be treated as qualifying intangible assets and included in capital for purposes of satisfying a risk-based capital standard if certain conditions of financial soundness are met. Amortizes certain supervisory goodwill over a 20-year period. Deducts from a savings association's capital (for purposes of capital standards compliance) its investment in, and loans to, any subsidiary engaged in activities that are impermissible for a national bank (except for mortgage banking activities). Authorizes the DOTS or the FDIC to: (1) restrict (before a certain date) or prohibit (after that date) the asset growth of a savings association which is not in compliance with capital standards; and (2) require such association to submit an acceptable business plan. Prohibits a State-chartered savings association from acquiring equity investments which are impermissible for a Federal savings association (with the exception of service corporation subsidiaries). Provides that the expense of the examination of savings associations or their affiliates shall be assessed upon savings associations in proportion to their assets or resources. Specifies procedures for making such assessments and remedies in cases where an affiliate refuses to pay examination costs, permit examination, or provide required information. Repeals specified provisions of the Home Owners' Loan Act of 1933 and the National Housing Act which provide capital forbearance to certain insured savings associations. Allows those savings associations operating under a capital forbearance plan previously approved pursuant to such provisions to continue to operate under such plans, provided such associations continue to adhere to them and continue to submit required reports. Revises the guidelines under which savings and loan holding companies may control and acquire savings associations. Sets forth additional criteria for the qualified new thrift lender test. Makes applicable to savings associations certain provisions of the Federal Reserve Act relating to transactions with affiliates and loans and extensions of credit to directors and controlling persons. Prohibits any savings association from carrying on any sale, plan, or practices or any advertising in violation of regulations promulgated by DOTS. Transfers provisions of the Federal Home Loan Bank Act regarding liquid asset requirements to the Home Owner's Loan Act of 1933. Substitutes the Thrift Advisory Council for the Federal Savings and Loan Advisory Council. Subjects the Office of Thrift Supervision to the audit authority of the General Accounting Office (GAO). Prohibits the Secretary of the Treasury from merging or consolidating the Office of Thrift Supervision with either the Office of the Comptroller of the Currency or the Comptroller of the Currency. Requires the Secretary of the Treasury, in conjunction with specified Federal officers, to report periodically to the Congress regarding the preservation of minority ownership of minority financial institutions. Title IV: Dissolution and Transfer of Functions, Personnel, and Property of Federal Savings and Loan Insurance Corporation - Terminates the Federal Savings and Loan Insurance Corporation (FSLIC) 60 days after the enactment of this Act. Provides that all insurance and receivership functions previously performed by the FSLIC shall be performed by either the FDIC or the Resolution Trust Corporation. Provides for the continuation and enforcement of all rules, regulations, and orders of the FSLIC. Provides for the transfer of the personnel and property of the FSLIC to the FDIC and the DOTS. Requires the FSLIC to submit a written report of a final accounting of its finances and operations to the Secretary of the Treasury, the Office of Management and Budget, and the Congress immediately prior to its dissolution. Title V: Financing For Thrift Resolutions - Subtitle A: Resolution Trust Corporation - Establishes the Resolution Trust Corporation (RTC). Specifies the purposes of the RTC as: (1) carrying out a program to manage and resolve cases involving institutions insured by the FSLIC for which a receiver or conservator has been appointed or is appointed within three years following the enactment of this Act; (2) managing the assets of the Federal Asset Disposition Association (FADA); and (3) performing other authorized functions. Provides that the RTC shall have the same case resolution and financial assistance rights and powers as the FDIC. Specifies that the RTC shall not have the authority to obligate the FDIC or its funds and shall be subject to the same limitations as the FDIC in connection with providing assistance to, or liquidating or otherwise resolving cases involving, insured institutions. Establishes the Oversight Board of the RTC which shall consist of the Secretary of the Treasury, the Chairman of the Federal Reserve Board, the Attorney General, the Secretary of Housing and Urban Development, and one member from the private sector. Specifies special powers of the RTC with respect to receiverships, conservatorships, and oversight of the institutions for which it is responsible. Requires the Oversight Board to establish (and report to the Congress on) a minority outreach program designed to include entities owned by women and minorities in contracts with the Board. Requires the RTC to report to the Oversight Board and the Congress the results of its review of prior cases resolved by the FSLIC with respect to possible cost reduction and restructuring. Confers authority upon the RTC to exercise all resolution powers and activities exercisable by either the FDIC or the FSLIC (including conservatorships and receiverships). Requires the RTC to establish a Real Estate Asset Division (READ) to: (1) oversee the disposition of real property assets by entities or institutions under its purview; (2) publish an inventory of such assets; and (3) provide notice concerning the availability of such assets for sale. Directs the RTC to establish a national advisory board to assist and advise it and READ on such assets disposition. Directs the Oversight Board to establish a regional advisory board corresponding to a region represented by the Federal home loan banks whenever it determines that significant real property assets exist within such region. Terminates such boards upon the RTC's termination. Directs the RTC to prescribe policies and procedures for the management and disposition of real property assets. Subjects all insured savings associations organized by the RTC to the limitations it imposes with respect to: (1) assets growth; (2) lending activities; (3) asset acquisitions; (4) brokered deposits; and (5) payment of deposit rates. Requires the RTC to convert the FADA to a corporation or other business entity and to sell, wind down, or dissolve it within 180 days after the enactment of this Act. Exempts the RTC from Federal, State, municipal, and local taxation, except taxes on real estate held by the RTC. Terminates the RTC ten years after the date of enactment of this Act and transfers its assets and liabilities to the FSLIC Resolution Fund. Authorizes the RTC to remove any legal proceeding to which it may be a party from a State court to the U.S. District Court for the District of Columbia. Provides that any guarantees issued by the FSLIC after January 1, 1989, and before the enactment of this Act shall be assumed by the RTC. Requires the RTC to borrow funds from the Treasury, on terms fixed by the Secretary of the Treasury, up to an aggregate of $5,000,000,000 outstanding at any one time. Sets guidelines for RTC disposition of rental properties to provide homeownership and rental housing opportunities for lower-income families. Authorizes the Secretaries of Agriculture and of Housing and Urban Development to provide financial assistance for such program. Mandates a congressional review of the employment, compensation and benefit practices with respect to RTC personnel. Provides for congressional disapproval by joint resolution of certain RTC personnel actions. Directs the RTC to submit an annual report to the Congress and the President regarding the Oversight Board's operations, activities, receipts, and expenditures for the preceding 12-month period. Requires additional semiannual status reports to the Congress regarding the RTC, FDIC, and the Oversight Board. Requires the Oversight Board to make semiannual appearances regarding case resolution and costs before a specified congressional committee. Amends the Inspector General Act of 1978 to establish the Office of Inspector General of the RTC. Mandates that the RTC be audited annually by the General Accounting Office. Subtitle B - Resolution Funding Corporation - Amends the Federal Home Loan Bank Act to establish the Resolution Funding Corporation to fund the RTC under the supervision of the Secretary of the Treasury. Outlines the parameters under which the administrative and issuance costs of the Funding Corporation and its Principal Fund shall be paid by the Federal home loan banks. Requires the Secretary of the Treasury to report annually to the President and the Congress regarding the Funding Corporation's operations and financial status. Terminates the Funding Corporation after the maturity and full payment of all obligations issued by it. Mandates an annual General Accounting Office audit of the Funding Corporation. Mandates the inclusion of the Funding Corporation's receipts and disbursements within the President's budget and within each concurrent budget resolution considered by the Congress. Excludes certain borrowing outlays of the Resolution Trust Corporation from calculation of certain Federal budget deficits. Grants the Financing Corporation new assessment authority against SAIF members in the same manner as exercised by the FDIC, with the approval of the FDIC Board of Directors. Prescribes the funding sources to be used by the Financing Corporation to make interest payment on obligations. Declares that the Resolution Funding Corporation and the Resolution Trust Corporation are wholly owned government corporations under Federal law. Subjects to an audit by the Comptroller General all entities performing under this Act and the contractors serving them. Directs the Comptroller General to examine and monitor all insolvent institution cases resolved by the FSLIC from January 1, 1988, through the date of enactment of this Act, and to provide the Congress with an annual updated estimate of the costs of resolution agreements entered into by the FSLIC. Amends the Inspector General Act of 1978 to establish the Office of Inspector General for the FDIC. Title VI: Thrift Acquisition Enhancement Provisions - Amends the Bank Holding Company Act to allow bank holding companies to acquire any savings association with the approval of the Federal Reserve Board beginning on the date of enactment of this Act. Prohibits the Federal Reserve Board from imposing any restrictions on transactions between a savings association and its holding company affiliates other than those restrictions presently imposed under the Federal Reserve Act ("Tandem restrictions"). Amends the Home Owners Loan Act of 1933 to allow, with specified exceptions, a savings and loan holding company to hold up to five percent of the voting shares of an unaffiliated savings association or savings and loan holding company. Permits multiple savings and loan holding companies to acquire up to five percent of the voting shares of any non-subsidiary company. Amends the Bank Holding Company Act of 1956 to cite additional circumstances in which certain companies with passive investments in grandfathered banks shall lose their exemption from treatment as non-bank holding companies. Amends the Home Owners' Loan Act of 1933 to prescribe guidelines under which savings and loan holding companies may purchase a minority stock interest in undercapitalized savings associations. Amends the Depository Institution Management Interlocks Act to permit the management official of an acquiring savings and loan holding company to act as a management official of an undercapitalized institution with DOTS permission. Amends the Home Owners' Loan Act to declare that as far as State law is concerned, the DOTS has the sole regulatory authority for savings and loan holding companies and their subsidiaries (with the exception of State-chartered savings association). Provides that the costs of regulating such institutions shall be assessed against them. Title VII: Federal Home Loan Bank System Reforms - Subtitle A: Federal Home Loan Bank Act Amendments - Amends the Federal Home Loan Bank Act to establish the Federal Housing Finance Board as an independent agency in the executive branch to supervise the Federal home loan banks. Outlines the Board's responsibilities and subjects it to an annual audit by the Comptroller General, who shall report the audit findings to the Congress. Establishes an Office of Inspector General for the Board. Abolishes the Federal Home Loan Bank Board (FHLBB). Transfers the activities and employees of the FHLBB and of the FSLIC to the Chairperson of the Federal Housing Finance Board and to the DOTS for joint allocation between them. Prescribes guidelines for the transition period. Repeals the limitation placed on: (1) the lawful contract interest rate receivable by Federal Home Loan Bank member and non-member borrowers; and (2) the interest rate payable on demand accounts by financial institutions under the Federal Home Loan Bank Board's jurisdiction. Provides that upon termination of Federal Home Loan Bank membership or borrowing privileges all advances must be repaid and are subject to a repayment fee. Mandates that a specified number of Board-appointed Federal home loan bank directors be chosen from certain consumer and community activist organizations. Prohibits Federal home loan bank directors from serving as officers of any such bank or from holding any interest in any Federal home loan. Authorizes Federal home loan banks to make loans to the FDIC for the use of the SAIF. Makes such loans a direct liability of the SAIF. Requires each Federal home loan bank to establish a community development lending training program for savings association personnel to underwrite loans which primarily benefit low- and moderate-income households and communities. Prescribes accounting guidelines for Federal home loan bank reserves and dividends. Authorizes the Federal Housing Finance Board to periodically assess Federal home loan banks to provide for payment of the Board's estimated expenses. Declares that Federal home loan bank membership is open to any federally insured financial institution (including a credit union) which demonstrates a commitment to housing. Requires the Secretary of the Treasury to report to certain congressional committees the results of a cost benefit study regarding the transfer of Federal home loan bank members from one district to another, with particular emphasis upon specified institutions in the State of Maryland. Directs the Federal Housing Finance Board to establish minimum standards of community service or investment for its financial institution members to maintain eligibility for certain advances. Mandates that each Federal home loan bank: (1) establish a Community Investment Program and an Affordable Housing Program for the purpose of promoting community-oriented mortgage lending and long-term low- and moderate-income housing at subsidized interest rates; and (2) establish an Advisory Council to advise it on low- and moderate-income housing needs. Requires annual status reports to the Congress regarding such housing programs. Reaffirms that Federal home loan banks are a source of short-term liquidity for solvent member banks, including those certified a "supervisory concern" with a reasonable prospect of recovery. Directs the Federal Housing Finance Board to establish credit procedures to expedite advances to savings associations certified by the DOTS to possess significant financial resources, but threatened with instability due to severe financial conditions (including regional financial conditions). Extends the suspension period to ten years before an institution may reacquire Federal home loan bank membership after withdrawal. Subtitle B: Conforming Amendments - Makes technical and conforming amendments to the Federal Home Loan Mortgage Corporation Act and related statutes. Directs the Comptroller General to report to the Congress the results of a study regarding capital requirements for government-sponsored enterprises. Title VIII: Bank Conservation Act Amendments - Amends the Bank Conservation Act to prescribe guidelines authorizing the Comptroller of the Currency to appoint conservators for banks, including the appointment of the FDIC as conservator. Title IX: Regulatory Enforcement Authority and Criminal Enhancements - Enhanced Enforcement Powers Act of 1989 - Subtitle A: Expanded Enforcement Powers, Increased Penalties, and Improved Accountability - Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to define the scope of personnel liable for civil and criminal penalties for participating with knowing or reckless disregard with respect to: (1) any violation of any law or regulation; (2) any breach of fiduciary duty; or (3) any unsafe or unsound practice likely to cause an adverse effect upon an insured financial institution. Includes in the enforcement powers of banking regulatory agencies the authority to: (1) require restitution, reimbursement, indemnification, or guarantee against loss; (2) restrict the institution's growth; (3) dispose of any loan or asset; (4) rescind agreements or contracts; (5) require the employment of qualified personnel; (6) place restrictions upon an institution's activities; (7) apply enforcement actions to savings and loan affiliates and entities; (8) issue temporary orders with respect to incomplete or inaccurate recordkeeping by an insured financial institution; and (9) remove or prohibit certain personnel from engaging in banking activities on an industrywide basis. Sets forth a limitations period for enforcement proceedings against such personnel after separation from banking service. Establishes a tiered schedule of increased civil money penalties for violations by insured financial institutions or their personnel. Establishes a criminal penalty for participation in the affairs of either a bank holding company or a savings and loan holding company by individuals who are prohibited from engaging in the affairs of a financial institution. Increases the civil penalties for non-compliance with reporting requirements. Authorizes the FDIC to take enforcement actions against savings associations if the DOTS has failed to take such action after being requested by the FDIC. Requires banking regulatory agencies to publicly disclose final enforcement orders (or modifications thereof). Requires certain financial institutions (including troubled institutions) to notify bank regulatory agencies before appointing senior executive personnel. Authorizes agencies to disapprove such appointments. Requires Federal banking agencies and the National Credit Union Administration to report to the Congress the findings of a joint task force feasibility study regarding the delegation of investigation and enforcement authority to regional or district offices. Requires annual agency reports to the Congress on all enforcement actions. Amends the Federal Credit Union Act to mandate an outside, independent audit of insured credit unions experiencing certain deficiencies. Prescribes guidelines under which the National Credit Union Administration Board shall function as conservator or liquidating agent of troubled credit unions. Subtitle B: Termination of Deposit Insurance: Amends the Federal Deposit Insurance Act to revise procedures for termination of FDIC deposit insurance and to authorize the temporary suspension of such insurance if the capital assets of either a financial institution or savings association are determined to be deficient by the FDIC. Subtitle C: Improving Early Detection of Misconduct and Encouraging Informants - Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to mandate that insured financial institutions furnish independent auditors with specified information. Provides employment protection remedies. Subtitle D: Right to Financial Privacy Act - Amends the Right to Financial Privacy Act to specify that the exceptions to the requirements of such Act apply to supervisory agencies of any financial institution, holding company, or any subsidiary of a financial institution or holding company. Specifies that such exceptions extend to: (1) any supervisory agency of financial records or information in the exercise of its supervisory regulatory or monetary functions, including conservatorship or receivership functions; (2) the Federal Reserve or any Federal Reserve bank in the exercise of its authority to extend credit to depository institutions and others; and (3) the RTC in the exercise of its conservatorship, receivership, or liquidation functions. Prohibits a financial institution which has been served a grand jury subpoena relating to possible crimes against financial institutions or regulatory agencies from notifying any customer whose records are sought or any other party about the existence or contents of any subpoena or any information that has been furnished to the grand jury in response to that subpoena. Authorizes the Securities and Exchange Commission to exchange customer record information with banking regulatory agencies. Subtitle E: Civil Penalties for Violations Involving Financial Institutions - Establishes maximum civil penalties for specified violations involving financial institutions. Requires the Attorney General to establish the right to recovery by clear and convincing evidence. Subtitle F: Criminal Law and Procedure - Amends the Federal criminal code to increase the criminal penalties for specified criminal offenses affecting financial institutions. Increases the statute of limitations pertaining to such crimes from five years to ten years. Directs the U.S. Sentencing Commission to increase the current sentencing guidelines for serious banking related offenses. Establishes a criminal penalty for the disclosure by financial institution personnel to their customers that they are targets of a grand jury records subpoena if the intent of such disclosure is the obstruction of justice. Provides for civil forfeiture and criminal forfeiture of any property derived from proceeds traceable to specified crimes affecting federally insured financial institutions. Amends the Federal criminal code to allow the disclosure of certain matters occurring before a grand jury to certain Government attorneys to assist in the enforcement of Federal criminal or civil law and this Act. Allows certain other disclosures when permitted by a court. Directs the Department of Justice to create regional offices of its Fraud Section in specified locations in Texas and California. Requires the Comptroller General to report to the Congress on the need for additional regional offices. Authorizes appropriations for the Department of Justice to investigate and prosecute financial institution-related offenses and to provide status reports to the Congress. Authorizes appropriations to the Federal courts system to process the case load generated by this Act. Title X: Study of Federal Deposit Insurance and Banking Regulation - Requires the Secretary of the Treasury to study and report to the Congress on the Federal deposit insurance system, including an appropriate structure for the offering of competitive products and services to consumers consistent with standards of safety and soundness. Requires the Board of Governors of the Federal Reserve System to report annually to the Congress the results of an annual survey of retail banking services by insured financial institutions and the fees charged for them. Requires the FDIC to report to certain congressional committees regarding the pass-through of deposit insurance to certain investors and tax-deferred plans. Requires the Comptroller General to report to the Congress the results of a study of certain deposit insurance issues. Requires the FDIC to report annually to certain congressional committees regarding the status of Federal deposit insurance funds. Title XI: Real Estate Appraisal Reform Amendments - Amends the Federal Financial Institutions Examination Council Act of 1978 to establish the appraisal Subcommittee to monitor: (1) State and Federal certification and licensing of appraisers involved in federally related transactions; and (2) the procedures and activities of the Appraisal Foundation. Requires the Subcommittee to submit an annual status report to the Congress and to maintain a national registry of State licensed appraisers eligible to perform appraisals in federally related transactions. Authorizes appropriations. Mandates that each State whose appraiser certification and licensing program complies with this Act transmit to such Subcommittee an annual roster of appraisers eligible to conduct federally-related transactions. Sets forth a time frame within which each Federal financial institutions regulatory agency and the Resolution Trust Corporation must prescribe real estate appraisal criteria for federally-related transactions under their jurisdiction. Establishes a civil penalty for financial institutions and specified Federal entities that knowingly obtain appraisal services for a federally related transaction from a person who is neither State certified nor licensed. Directs the Appraisal Subcommittee to report to the Congress the results of studies regarding: (1) the sufficiency of real estate data to permit appraisers to estimate property values properly in federally related transactions; and (2) the feasibility of extending the appraisal provisions of this Act to personal property in connection with Federal financial and public policy interests. Title XII: Miscellaneous Provisions - Amends the Federal Deposit Insurance Act to mandate independent annual audits of insured financial institutions and institutions applying for insurance. Requires the Comptroller General to report to the Congress the results of a study regarding the structure and condition of the credit union system. Directs the Secretary of the Treasury to report to the Congress regarding methods for increasing the use of minority banks, women's banks, and limited income credit unions as depositaries or financial agents of Federal agencies. Establishes the Credit Standards Advisory Committee to review and monitor: (1) the credit standards and lending practices of insured depository institutions; and (2) the supervision of such standards and practices by Federal financial regulators. Requires the Committee to report to certain congressional committees regarding its activities and its recommendations to Federal financial regulators. Directs the Federal Financial Institutions Examination Council to establish minimum accreditation requirements for State depository institution supervisory agencies and for examinations of such institutions by State supervisory agencies in order for any such examination to be deemed adequate for purposes of Federal law. Directs the Secretary of the Treasury to report to the Congress the results of a study regarding the manner in which Resolution Funding Corporation bonds and other U.S. Government securities may benefit small investors and increase their participation in U.S. securities offerings. Amends the Home Mortgage Disclosure Act of 1975 to mandate that the itemization of loan data include the number and dollar amount of mortgage loans involving mortgagors or mortgage applicants grouped according to income level, racial characteristics, and gender. Amends the Community Reinvestment Act of 1977 to mandate that each Federal depository institution regulatory agency, upon concluding its examination of an insured depository institution, evaluate the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods. Requires such evaluations to contain public and confidential sections. Requires each federally insured depository institution to report to the relevant regulatory agency on the geographic origins of its deposits and the extent to which such deposits come from areas outside the communities it serves. Requires the Board of Governors of the Federal Reserve System to report to the Congress the results of a study of the extent to which deposits acquired by depository institutions from depositors located outside the communities or States served by such institutions are detrimental to the purposes of the Community Reinvestment Act of 1977. Title XIII: Participation by State Housing Finance Authorities - Authorizes State Housing Finance Authorities to purchase mortgage-related assets from the Resolution Trust Corporation, or from institutions for which the FDIC is acting as conservator or receiver. Requires such Housing Authorities to invest net income attributable to the ownership of such assets in low- and moderate-income housing activities. Title XIV: Tax Provisions - Amends the Internal Revenue Code to move up the repeal date of certain tax rules for troubled financial institutions from December 31, 1989, to May 10, 1989. Directs the Secretary of the Treasury to promulgate regulations with respect to the tax treatment of financial institutions receiving Federal financial assistance. Exempts the Resolution Trust Corporation and the Resolution Funding Corporation from Federal income tax liability. Directs the Secretary of the Treasury to report annually to certain congressional committees on: (1) transactions in which Federal financial assistance is provided; and (2) the results of a study of the financial soundness of the activities of all Government-sponsored enterprises and the impact of their operations upon Federal borrowing.

Financial Institutions Reform, Recovery and Enforcement Act of 1989 - Title I: Purpose - Specifies the purposes of this Act, including regulatory reform, the establishment of an independent insurance agency to provide deposit insurance, and the provision of improved supervision and enhanced enforcement powers. Title II: Federal Deposit Insurance Corporation Authorities and Responsibilities - Amends the Federal Deposit Insurance Act to authorize the Federal Deposit Insurance Corporation (FDIC) to insure deposits held at savings associations as well as commercial banks. Increases the membership of the FDIC's Board of Directors from three to five members. Specifies that the additional two members shall be the Chairman of the Federal Home Loan Bank System and a citizen appointed by the President, by and with the advice and consent of the Senate. Revises certain definitions for the purposes of the Federal Deposit Insurance Act. Specifies that the term "insured deposit" shall include any liability which constituted an "insured account" within the meaning of the National Housing Act prior to the enactment of this Act, provided certain conditions are met. Specifies that the Federal Home Loan Bank System (FHLBS) shall be considered the appropriate Federal banking agency in the case of a savings association or a savings and loan holding company. Includes within the definition of "savings association" any institution that was supervised by the Federal Savings and Loan Insurance Corporation (FSLIC) prior to the enactment of this Act, a Federal savings and loan association or Federal savings bank, or a building and loan, savings and loan, homestead association, or a cooperative bank organized and operated under State law, or a corporation that the FDIC considers to be operating substantially in the same manner as a savings and loan association. Provides that every FSLIC insured savings association shall continue to be insured by the FDIC without application or approval. Provides that whenever a financial institution files an application or notice for membership with, or to commence or resume business with, the appropriate Federal banking agency, such agency must provide such application to the FDIC for comment. Requires such agency to take the FDIC's comment into account in deciding whether to grant the application. Provides that certain State financial institutions shall continue as insured institutions. Allows any Federal savings association authorized to do business by the FHLBS to become an insured financial institution upon the filing of an application with the FDIC together with a certificate issued by the FHLBS, unless insurance is denied by the FDIC. Sets forth procedures for the FDIC to evaluate such an application. Specifies the factors to be considered in granting or denying insurance coverage. Requires the FDIC to notify the FHLBS if such insurance coverage is denied, and to give specific reasons in writing for such denial. Requires every noninsured financial institution which becomes insured by the FDIC to pay any entrance fee prescribed by FDIC regulations. Requires that such fee be credited to either the Bank Insurance Fund (BIF) or the Savings Associations Insurance Fund (SAIF) depending on which fund the institution joins. Prohibits any insured financial institution from participating in any type of conversion transaction which would result in a change of membership from one such fund to the other without the approval of the FDIC. Places a five-year moratorium on the approval of such conversion transactions, except in limited circumstances. Requires financial institutions which participate in such conversion transactions to pay specified entrance and exit fees. Provides that whenever the FDIC incurs a loss in connection with the default of an insured financial institution, or in connection with providing assistance to an insured financial institution in danger of default, any other commonly-controlled insured financial institution shall be liable to the FDIC and on request shall reimburse the FDIC for any such loss. Specifies the method of calculating such liability. Sets forth procedures for imposing and collecting such liability. Limits the rights of any third parties in such proceedings. Provides that for a five-year period no BIF members shall be held liable for the default of a SAIF member and no SAIF members shall be held liable for the default of a BIF member. Defines "commonly-controlled" for purposes of determining such liability. Adds as a factor to be considered by the FDIC in evaluating applications for insurance coverage the risk presented to the Deposit Insurance Fund (DIF), the BIF, and the SAIF. Allows the FDIC, after reaching agreement with the other Federal banking agencies, to require insured financial institutions to file additional reports for insurance purposes. Requires the FDIC to set the assessment rate for insured financial institutions annually. Specifies that the annual assessment rate for BIF members shall be determined independently from the annual assessment rate for SAIF members. Prescribes the assessment rates for BIF members for 1989, 1990, and 1991 onward. Prescribes the assessment rates for SAIF members through 1990, for 1991 through 1993, and for 1994 onward. Allows the FDIC to raise or lower such assessment rates under specified circumstances. Limits any increase in the assessment rate to 50 percent over the annual assessment rate of the prior year. Specifies that such assessments shall be paid semiannually. Allows assessment credits to BIF members and SAIF members for years in which the ratio of the net worth of such funds to the value of insured deposits reaches a certain level. Specifies that such a credit shall be applied to the assessment becoming due for the next semiannual assessment period. Extends the provisions of the Change in Bank Control Act to savings associations as well as banks. Includes as an additional corporate power of the FDIC the authority to define any terms used in the Federal Deposit Insurance Act that are not specifically defined and to interpret the definitions of any terms that are not defined. Grants the FDIC the same authority to examine insured savings associations and to insure the deposits held at savings associations as it presently has with respect to insured banks. Establishes two insurance funds (the Bank Insurance Fund (BIF) and the Savings Associations Insurance Fund (SAIF)) to be used by the FDIC to carry out the insurance purposes of this Act. Specifies that such funds are both to be operated and administered by the FDIC. Requires such funds to be separately maintained and not commingled. Specifies that the BIF shall consist of the assets of the Permanent Insurance Fund and all amounts assessed of BIF members. Specifies that the SAIF shall consists of all amounts assessed of SAIF members (which are not required for the Financing Corporation or the Resolution Funding Corporation pursuant to this Act) and of funds provided by the Secretary of the Treasury according to a specific schedule for FY 1991 through 1999. Authorizes the Secretary to provide additional amounts for such fund if the minimum net worth of the fund falls below a certain level. Authorizes appropriations for such funds. Authorizes the FDIC to borrow funds for the use of the SAIF. Provides that such borrowings shall be a direct liability of the SAIF and shall be subject to certain limitations. Revises and defines the authorities and duties of the FDIC as the receiver or conservator for insured Federal financial institutions and for insured State financial institutions. Specifies that all insurance payments made on account of a closed bank or insured branch of a foreign bank shall be made only from the Bank Insurance Fund and all payments made on account of a closed savings association shall be made only from the Savings Association Insurance Fund. Provides that when the FDIC pays insurance to a depositor, the FDIC shall be subrogated to the depositor's claim against the financial institution. (Such right of subrogation now applies only to national banks.) Revises and defines the authorities and duties of the FDIC in the establishment of bridge banks in cases of failed or failing financial institutions. Authorizes the FDIC to use such bridge banks in the case of failed or failing financial institutions as well as banks. Increases from one to three the number of times a bridge bank may be granted a one-year extension of its corporate existence. Revises procedures for the termination and dissolution of bridge banks. Sets forth the method and procedures for the valuation and determination of claims by third persons against financial institutions in default. Establishes the FSLIC Resolution Fund (Fund). Specifies that such Fund shall be managed by the FDIC and shall be separately maintained and not commingled. Transfers to such Fund the reserves and assets, debts, obligations, contracts, and other liabilities of the FSLIC existing on the date of the dissolution of the FSLIC. Provides that such Fund shall be funded by: (1) income generated on the assets transferred to it; (2) proceeds of the resolution of insolvent thrift institutions which became insolvent prior to December 31, 1988 (to the extent such funds are not required by the Resolution Funding Corporation); (3) the proceeds from borrowings by the Financing Corporation; and (4) assessments on SAIF members levied prior to December 31, 1991, and not required by the Financing Corporation or the Resolution Trust Corporation. Provides for additional funding by the Secretary of the Treasury from appropriated funds in the event such other funds are insufficient. Limits any judgment resulting from a civil action against the FSLIC or the FDIC to the assets of such Fund. Dissolves such Fund upon the satisfaction of all debts and liabilities and the sale of all assets acquired in case resolutions. Requires that any funds remaining in such Fund be covered into the Treasury. Requires that any funds held in either the BIF or the SAIF must be invested in U.S. Government obligations or in obligations guaranteed by the U.S. Government. Requires that the funds from the BIF and the SAIF be invested separately and not commingled. Allows the FDIC to request a 90-day stay of any legal proceedings to which it becomes a party due to its acquisition of any asset or in the exercise of certain authorities. Requires the FDIC, in determining whether to provide assistance to financial institutions, to consider: (1) the immediate and long-term obligations of the FDIC with respect to such assistance; and (2) the Federal tax revenues which would be foregone. Provides that transfers of assets or liabilities associated with any trust business may be effected by the FDIC in connection with any asset purchase transaction without any further State or Federal approval. Revises provisions relating to certain agreements against the interests of the FDIC. Specifies that the Board of Directors of the FDIC may act by a 75 percent vote (current law requires a unanimous vote) in order to override a State's objection to an assisted interstate acquisition of an insured financial institution in default having $500,000,000 or more in assets. Revises certain rules relating to the interstate acquisitions of banks. Establishes separate rules relating to the interstate acquisitions of savings associations. Increases the borrowing authority of the FDIC from $3,000,000,000 to $5,000,000,000. Makes such borrowing authority subject to the approval of the Secretary of the Treasury. Limits any State or local tax penalties to which the FDIC may be subjected when acting as a receiver or conservator of a financial institution. Limits the borrowing of both the BIF and the SAIF to 50 percent of net worth or $10,000,000,000, whichever is less. Requires the FDIC to report to the Congress annually regarding its operations, activities, budget, receipts, and expenditures. (Current law requires an annual report regarding only the FDIC's operations.) Requires the FDIC to make quarterly reports to the Secretary of the Treasury and to the Office of Management and Budget with respect to the FDIC's financial operating plans and forecasts. Requires signs displayed by insured financial institutions to represent whether an institution is a BIF member or a SAIF member. Makes all insured financial institutions subject to the Bank Merger Act. Makes the FHLBS the responsible agency with respect to mergers where the acquiring, assuming, or resulting institution is to be a savings association. Provides that all insured State financial institutions, other than State member banks or district banks, would be subject to the requirement of prior FDIC consent to the reduction of capital. Requires any insured savings association which establishes or controls a new company or elects to conduct any new activity to notify the FDIC and the FHLBS. Requires such a savings association to deduct its investments in, and loans to, such company from its own capital for purposes of determining capital adequacy if the company is engaged in activities not permissible for a national bank. Grants the FDIC and the FHLBS certain enforcement powers with respect to any company controlled by an insured savings association. Authorizes the FDIC to determine activities which are incompatible with deposit insurance. Revises the statement of the policy of nondiscrimination against State nonmember banks under the Federal Deposit Insurance Act to include State savings associations. Eliminates the requirement of nondiscrimination on account of an institution having capital stock of less than the amount required for Federal Reserve membership. Title III: Savings Association Supervision Improvements - Amends the Home Owners' Loan Act of 1933 to specify the duties and responsibilities of the FHLBS with respect to the examination, supervision, and regulation of savings associations. States that such authorities are intended to encourage savings associations to maintain their role of providing credit for housing in a manner consistent with principles of safe and sound operation. Requires the FHLBS to prescribe accounting and disclosure standards for all savings associations. Provides that such standards shall incorporate generally accepted accounting principles to the same degree such principles are used to determine compliance with the rules and regulations of other Federal banking agencies. Requires that the rules, regulations, and policies of the FHLBS governing the operation of savings associations shall be no less stringent than those of the Comptroller of the Currency. Transfers specified provisions of the National Housing Act to the Home Owners Loan Act of 1933. Makes certain conforming name changes and certain technical amendments. Requires the FDIC to be appointed the receiver of insured State savings associations under certain circumstances. Requires insured State savings associations, as well as Federal savings associations, to abide by the rules of the FHLBS when converting from mutual to stock form or from stock to mutual form. Requires the FHLBS to establish for all savings associations capital standards that are no less stringent than those applied to national banks. Allows such capital standards to include goodwill as a component of capital. Specifies that in determining capital adequacy, any investments in, and loans to, a subsidiary engaged solely in mortgage banking activities shall not be deducted from the capital of savings associations. Requires that such capital standards must be fully implemented no later than June 1, 1991. Repeals specified provisions of the Home Owners' Loan Act of 1933 and the National Housing Act which provide capital forbearance to certain insured savings associations. Allows those savings associations operating under a capital forbearance plan previously approved pursuant to such provisions to continue to operate under such plans, provided such associations continue to adhere to such plans and continue to submit required reports. Provides that the expense of the examination of savings associations or their affiliates shall be assessed by the FHLBS upon savings associations in proportion to their assets or resources. Specifies procedures for making such assessments and remedies in cases where an affiliate refuses to pay examination costs, permit examination, or provide required information. Transfers provisions of the National Housing Act concerning the regulation of savings and loan holding companies to the Home Owners' Loan Act of 1933. Makes certain technical amendments to such provisions. Imposes certain sanctions upon savings associations that fail to achieve or maintain qualified thrift lender status. Requires such a savings association to convert its charter to a bank charter within three years unless it requalifies within one year. Prohibits such a savings association from engaging in certain activities until such conversion is complete. Treats a holding company which controls such a savings association as a bank holding company for all purposes of the Bank Holding Company Act of 1956. Charges an insurance fund exit fee upon such a conversion. Makes applicable to savings associations certain provisions of the Federal Reserve Act relating to transactions with affiliates and loans and extensions of credit to directors and controlling persons. Prohibits any savings association from carrying on any sale, plan, or practices or any advertising in violation of regulations promulgated by the FHLBS. Title IV: Dissolution and Transfer of Functions, Personnel, and Property of Federal Savings and Loan Insurance Corporation - Terminates the Federal Savings and Loan Insurance Corporation (FSLIC) 60 days after the enactment of this Act. Provides that all insurance and receivership functions previously performed by the FSLIC shall be performed by either the FDIC or the Resolution Trust Corporation. Provides for the continuation and enforcement of all rules, regulations, and orders of the FSLIC. Provides for the transfer of the personnel and property of the FSLIC to the FDIC and FHLBS. Requires the FSLIC to submit a written report of a final accounting of its finances and operations to the Secretary of the Treasury, the Office of Management and Budget, and the Congress immediately prior to its dissolution. Title V: Financing For Thrift Resolutions - Subtitle A: Resolution Trust Corporation - Establishes the Resolution Trust Corporation (RTC). Specifies the purposes of the RTC as: (1) carrying out a program to manage and resolve cases involving institutions insured by the FSLIC for which a receiver or conservator has been appointed or is appointed within three years following the enactment of this Act; (2) managing the assets of the Federal Asset Disposition Association (FADA); and (3) performing other authorized functions. Provides that the RTC shall have the same case resolution and financial assistance rights and powers as the FDIC. Specifies that the RTC shall not have the authority to obligate the FDIC or its funds and shall be subject to the same limitations as the FDIC in connection with providing assistance to, or liquidating or otherwise resolving cases involving, insured institutions. Establishes the Oversight Board of the RTC which shall consist of the Secretary of the Treasury, the Chairman of the Federal Reserve Board, and the Attorney General. Authorizes the Oversight Board to select a chief executive officer for the RTC. Specifies the corporate powers of the RTC. Specifies special powers of the RTC with respect to receiverships, conservatorships, and oversight of the institutions for which it is responsible. Requires the RTC to convert the FADA to a corporation or other business entity and to sell, wind down, or dissolve such corporation or entity within 180 days after the enactment of this Act. Authorizes the RTC to issue capital certificates to the Resolution Funding Corporation. Sets forth requirements and limitations concerning such capital certificates. Exempts the RTC from Federal, State, municipal, and local taxation, except taxes on real estate held by the RTC. Authorizes the RTC to remove any legal proceeding to which it may be a party from a State court to the U.S. District Court for the District of Columbia. Provides that any guarantees issued by the FSLIC after January 1, 1989, and before the enactment of this Act shall be converted into obligations, entitlements, and instruments of the RTC. Authorizes the RTC to borrow funds from the Treasury, on terms fixed by the Secretary of the Treasury, up to an aggregate of $5,000,000,000 outstanding at any one time. Subtitle B: Resolution Funding Corporation - Establishes the Resolution Funding Corporation (RFC). Specifies the purpose of the RFC as providing the RTC with the funds necessary to carry out the purposes of this Act. Establishes a directorate to manage the RFC which shall consist of: (1) the director of the Office of Finance of Federal Home Loan Banks; and (2) two members selected from the presidents of the Federal Home Loan Banks. Sets forth administrative provisions concerning the management of the RFC. Sets forth the powers and duties of the RFC. Provides for the capitalization of the RFC by the purchase of capital stock by Federal Home Loan Banks. Specifies the amounts each Federal Home Loan Bank shall invest in the capitalization of the RFC. Provides for additional sources of funds for the RFC. Limits the amount of bonds or similar obligations which the RFC may issue to $50,000,000,000. Provides that the RFC shall pay any interest due on such obligations from proceeds received by the RTC from the liquidation of financial institutions under its management. Provides that the proceeds of obligations issued by the RFC shall be invested in capital certificates issued by the RTC. Grants tax-exempt status to any obligations of the RFC. Terminates the RFC after the date by which all capital certificates purchased by the RFC in the RTC have been retired. Title VI: Thrift Acquisition Enhancement Provisions - Amends the Bank Holding Company Act to allow bank holding companies to acquire any savings association with the approval of the Federal Reserve Board beginning two years after the enactment of this Act. Prohibits the Federal Reserve Board from imposing any restrictions on transactions between a savings association and its holding company affiliates other than those restrictions presently imposed under the Federal Reserve Act. Amends the National Housing Act to allow a savings and loan holding company to hold up to five percent of the voting shares of an unaffiliated savings association or savings and loan holding company. Permits multiple savings and loan holding companies to acquire up to five percent of the voting shares of any non-subsidiary company. Title VII: Federal Home Loan Bank Act System Reforms - Subtitle A: Federal Home Loan Bank Act Amendments - Amends the Federal Home Loan Bank Act to abolish the Federal Home Loan Bank Board (FHLBB) and transfer all power and authority vested in the FHLBB to the Chairman of the Federal Home Loan Bank System (FHLBS). Provides that the FHLBS shall be a bureau of the Department of the Treasury. Provides that the Chairman of the FHLBS shall be appointed by the President, by and with the advice and consent of the Senate. Specifies that the Chairman of the FHLBB shall become the Chairman of the FHLBS. Sets forth administrative provisions concerning employees of the FHLBS. Provides that the FHLBS shall have and may exercise all functions which the FHLBB and the FSLIC exercised and which are not expressly transferred or consolidated into the FDIC or the RTC. Sets forth the procedures and requirements for the election of the Board of Directors of the Federal Home Loan Banks. Authorizes Federal Home Loan Banks to make loans to the Federal Deposit Insurance Corporation, subject to the concurrence of the Chairman of the FHLBS, for the use of the SAIF. Requires the senior supervisory employee of each Federal Home Loan Bank to report to the chief supervisory official of the FHLBS. Provides that such senior supervisory employee may be removed for cause by the Chairman of the FHLBS. Changes the name of the Federal Savings and Loan Advisory Council to the Thrift Advisory Council. Abolishes the Federal Savings and Loan Insurance Corporation Industry Advisory Committee. Subtitle B: Conforming Amendments - Makes specified conforming amendments to the Federal Home Loan Mortgage Corporation Act, the Deficiency Appropriation Act of 1936, the Housing Act of 1948, and the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). Title VIII: Bank Conservation Act Amendments - Amends the Bank Conservation Act to revise provisions concerning the appointment of the FDIC as the conservator of a bank. Specifies the conditions under which the FDIC may be appointed as a conservator. Allows an affected bank to seek judicial review of the appointment of a conservator, except in cases where the bank has consented to the appointment of a conservator or the bank's deposit insurance has been terminated. Specifies that the Comptroller of the Currency shall have the exclusive power and jurisdiction to appoint a conservator for the bank. Requires the Comptroller to consult with the FDIC when examining and supervising an ongoing bank for which the FDIC has been appointed conservator, as long as the bank continues operations as an ongoing national bank. Revises provisions concerning the termination of a bank conservatorship. Revises the powers and duties of a conservator. Revises provisions concerning the liability of a conservator for acts performed pursuant to the conservatorship. Specifies that a conservator may be held liable only for acts which are found to be grossly negligent. Allows the Comptroller to indemnify the conservator. Title IX: Regulatory Authority and Criminal Enhancements - Enforcement Powers Improvement Act of 1989 - Subtitle A: Regulation of Financial Institutions - Makes technical amendments to the Federal Deposit Insurance Act with respect to a Federal banking agency's authority to impose sanctions on an "institution-related party" who participates in the affairs of an insured financial institution (both banks and savings associations.) Reduces from 120 days to 60 days the prior notice the FDIC must give of its intention to terminate a financial institution's deposit insurance. Reduces the period during which deposit insurance is continued in such cases from two years to a period of six months to two years at the discretion of the FDIC. Allows the FDIC to temporarily suspend deposit insurance upon a finding that an insured financial institution has no tangible shareholders' equity that qualifies under the capital guidelines or regulations of the appropriate Federal banking agency. Allows the appropriate Federal banking agency to issue cease and desist orders to require affirmative action to correct conditions resulting from certain violations or practices, including making restitution or reimbursement, providing indemnification, rescinding contracts, disposing of loans, or assets, restricting growth of the institution, or providing guarantees against loss. Allows such an order to limit the activities or functions of the financial institution of any institution-related party. Specifies that the FHLBS may exercise cease and desist authority with respect to savings and loan holding companies, any subsidiary of a savings and loan holding company, any service corporation of a savings association, and any subsidiary of any such service corporation. Revises the temporary cease and desist authority of the Federal banking regulatory agencies to delete the requirement that the agency must show a "substantial" dissipation of assets or a "serious" weakening of the condition of the financial institution. Provides that such a temporary order may place limitations on the activities or functions of the financial institution or prohibitions or restrictions on the growth of the institution or any institution-related party. Allows the use of such temporary cease and desist authority when a financial institution's records are so incomplete or inaccurate that the appropriate banking agency cannot determine the financial condition of the institution. Provides that such an order may require the institution to take such action necessary to restore the records to a complete and accurate state. Revises rules concerning the suspension or removal of any financial institution-related party. Deletes the requirement that the regulatory agency must show activity which results in "substantial" financial loss or other damage to the financial institution. Specifies the types of activity to be considered, including activity at any business institution or another financial institution other than the institution in question. (Current law provides for different standards depending on whether the activity took place at another institution or at the particular institution from which removal is sought.) Allows the temporary removal of an institution-related party pending a permanent removal if necessary for the protection of the institution or depositors. Provides that any institution-related party suspended or removed by such an order shall also be suspended or removed or prohibited from participation in the conduct of the affairs of any: (1) insured financial institution; (2) bank holding company or subsidiary; (3) Edge Act corporation; (4) service corporation or subsidiary; (5) savings and loan holding company or subsidiary; (6) federally-insured credit union; and (7) institution chartered under the Farm Credit Act of 1971. Exempts such a person from such industry-wide prohibitions if the appropriate Federal regulatory agency gives prior written approval. Specifies that such authority to proceed against any institution-related party shall not be affected by the resignation, termination of employment, or other separation of such person from an insured financial institution. Increases from $1,000 per day to $25,000 per day the civil penalty for the violation of a cease and desist order or an order for the suspension or removal of an institution-related party. Allows a penalty of up to $1,000,000 per day for violations made with reckless disregard for the safety and soundness of the financial institution. Imposes a $25,000 per day civil penalty (up to $1,000,000 per day in cases of reckless disregard for the safety and soundness of the financial institution) for a violation of: (1) any law or regulation relating to financial institutions; (2) any written condition imposed by the appropriate Federal banking agency in connection with the grant of any application or other request; or (3) any fiduciary duty. Imposes such penalty for any practice which results in a loss to the financial institution or pecuniary gain to the institution-related party. Imposes criminal penalties upon any person who participates in the affairs of any federally regulated financial institution, holding company, or subsidiary after having been suspended, removed from office, or prohibited from participating in the affairs of a financial institution by an order of the appropriate Federal banking regulatory agency. (Current law imposes criminal penalties only for participation in the affairs of the institution from which the person was prohibited, removed, or suspended.) Authorizes the Federal banking agencies to pay rewards for information which leads to a recovery which exceeds $50,000 in criminal fines, restitution, civil penalties, or forfeitures. Limits such a reward to the lesser of 25 percent of the recovery or $100,000. Prohibits a federally-insured financial institution from discharging or discriminating against any employee who provides information to any regulatory authority or to the Department of Justice regarding a possible violation of any law or regulation by the financial institution or its officers, directors or employees. Establishes a civil cause of action for any employee or former employee who believes he has been discharged or discriminated against in violation of such prohibition. Authorizes the FDIC to recommend that the FHLBS take any enforcement actions authorized with respect to any savings association. Requires the FDIC to take such action if the FHLBS does not take such enforcement actions. Increases from $100 per day to a maximum of $1,000,000 per day the penalty for unauthorized participation in the affairs of a financial institution by any person who has been convicted of any criminal offense involving dishonesty or a breach of trust. Makes both the depository institution and the individual involved subject to such penalty. (Current law makes only the depository institution subject to such penalty.) Imposes criminal penalties for the knowing violation of such prohibition, in addition to such civil penalty. Increases from $1,000 per day to $25,000 per day the civil penalty for specified violations of the Federal Reserve Act. Allows a penalty of up to $1,000,000 per day for any such violations made with reckless disregard for the safety and soundness of the financial institution. Amends the Bank Holding Company Act to increase the criminal and civil penalties for violations of such Act. Specifies that both criminal and civil penalties shall be cumulative. Increases the civil penalties for violations of the prohibitions against tying arrangements between subsidiaries of a bank holding company from $1,000 per day to $25,000 per day. Allows a penalty of up to $1,000,000 per day for violations made with reckless disregard for the safety and soundness of the financial institution. Makes similar increases in the civil penalty for refusal to permit examination of a national bank or affiliate and in the general civil penalty authority of the Comptroller of the Currency. Amends the Change in Bank Control Act to increase the civil penalties for violations of such Act from $10,000 per day to $25,000 per day. Allows a penalty of up to $1,000,000 per day for violations made with reckless disregard for the safety and soundness of the financial institution. Deletes the requirement that such a violation must be "willful." Sets forth procedures for the assessment and collection of such penalties. Amends the Bank Protection Act of 1968 to repeal requirements for insured financial institutions to submit reports with respect to security devices and procedures. Increases to $25,000 per day the penalty for national banks, State nonmember banks, Federal Reserve member banks, and bank holding companies which violate reporting requirements. Allows a penalty of up to $1,000,000 per day for violations made with reckless disregard for the safety and soundness of the financial institution. Revises such requirements to prohibit submission of any false, misleading, or incomplete reports or information. (Current law provides penalties only for failure to make required reports.) Subtitle B: Regulation by the Federal Home Loan Bank System - Specifies that the FHLBS shall have examination and supervision authority with respect to Federal savings associations. Requires savings associations to make reports of condition to the FHLBS. Imposes civil penalties of $25,000 per day for failure to submit such reports and for submitting false, misleading, or incomplete reports or information. Allows a penalty of up to $1,000,000 per day for violations of such reporting requirements from reckless disregard for the safety and soundness of a savings association. Increases the civil and criminal penalties for violations of the Savings and Loan Holding Company Act to conform with the penalties for Bank Holding Company Act violations. Provides that all ongoing litigation in which the FHLBB or the FSLIC are parties shall be pursued by either the FHLBS or the FDIC. Authorizes the FHLBS to continue certain pending enforcement actions initiated by the FHLBB or the FSLIC prior to the effective date of this Act. Subtitle C: Credit Unions - Amends the Federal Credit Union Act to revise the enforcement authority of the National Credit Union Administration (NCUA) to conform to the enforcement authorities of the other Federal banking regulatory agencies. Increases the penalties for violations of such Act to conform to the penalties for violations of other banking laws. Subtitle D: Right to Financial Privacy Act - Amends the Right to Financial Privacy Act to specify that the exceptions to the requirements of such Act apply to supervisory agencies of any financial institution, holding company, or any subsidiary of a financial institution or holding company. Specifies that such exceptions extend to: (1) any supervisory agency of financial records or information in the exercise of its supervisory regulatory or monetary functions, including conservatorship or receivership functions; (2) the Federal Reserve or any Federal Reserve bank in the exercise of its authority to extend credit to depository institutions and others; and (3) the RTC in the exercise of its conservatorship, receivership, or liquidation functions. Prohibits a financial institution which has been served a grand jury subpoena relating to possible crimes against financial institutions or regulatory agencies from notifying any customer whose records are sought or any other party about the existence or contents of any subpoena or any information that has been furnished to the grand jury in response to that subpoena. Impose criminal penalties for violations of such prohibition. Subtitle E: Criminal Enhancements - Amends the Federal criminal code to increase the criminal penalties and impose civil penalties for: (1) financial institution bribery; (2) financial institution misapplication and embezzlement; (3) false entries on the books of financial institutions; (4) fraud on a deposit insurer; (5) false statements or overvaluations concerning financial institutions; and (6) financial institution fraud. Sets forth procedures for the imposition of civil penalties and the collection of any such penalties. Specifies that all criminal and civil penalties shall be cumulative. Increases the statute of limitations pertaining to such crimes from five years to ten years. Provides for civil forfeiture and criminal forfeiture of any property derived from proceeds traceable to specified crimes affecting federally insured financial institutions. Amends the Federal Rules of Criminal Procedure to allow the disclosure of certain matters occurring before a grand jury to certain Government attorneys to assist in the enforcement of Federal criminal or civil law. Allows certain other disclosures when permitted by a court. Authorizes appropriations for FY 1989 to the Department of Justice for investigations and prosecutions involving financial institution crimes. Title X: Study of Federal Deposit Insurance and Banking Regulation - Requires the Secretary of the Treasury to study and report to the Congress on the Federal deposit insurance system, including an appropriate structure for the offering of competitive products and services to consumers consistent with standards of safety and soundness. Title XI: Miscellaneous Provisions - Amends the Federal Credit Union Act to delete the requirement that every credit union maintain with the National Credit Union Share Insurance Fund (NCUSIF) a deposit equal to one percent of the credit union's insured shares. Authorizes the National Credit Union Administration (NCUA) to assess an additional insurance premium if the operating level of the NCUSIF falls below a minimum level. Allows a credit union to expense the one percent deposit over an eight-year period. Requires the Comptroller of the Currency, subject to the approval of the Secretary of the Treasury, to fix the compensation of the employees of the Office of the Comptroller of the Currency. Directs the Comptroller to seek to maintain comparability with the compensation at the other Federal banking regulatory agencies.