It suggested Congress consolidate federal agencies over depository institutions
(1) IN GENERAL--Subject to the recommendations and modifications of the Council under subsection (g), and except as provided in paragraph (2) or (3), the appropriate Federal banking agencies shall, through a rulemaking under subsection (g), jointly prohibit proprietary trading by an insured depository institution
, a company that controls, directly or indirectly, an insured depository institution
or is treated as a bank holding company for purposes of the Bank Holding Company Act of1956 (12 U.S.
Passage of the 1994 Reigle-Neal Act, which regulates interstate banking, has spurred the consolidation of depository institutions
. The number of FDIC-insured commercial banks fell from 10,166 in the middle of 1995 to 7,350 in the middle of 2007, a decline of more than 27 percent.
Kohn stated that the Board supports the act, which would eliminate the prohibition of interest on demand deposits, authorize the Federal Reserve to pay interest on balances held by depository institutions
at Reserve Banks, and provide the Board with increased flexibility in setting reserve requirements.
The disclosures include informing the consumer that the insurance product or annuity is not insured by the FDIC or any other agency of the United States, the institution or an affiliate; the insurance product or annuity is not a deposit or other obligation of, or guaranteed by, the depository institution
or its affiliate, and if the insurance product or annuity involves an investment risk, consumers must be told there is a risk and informed of the possible loss of value.
Required clearing balances are not a separate type of Federal Reserve deposit, but rather are a contractual commitment by a depository institution
to maintain more Federal Reserve deposits than are necessary to satisfy the institutions statutory reserve requirements.
* Allowing insured depository institutions
to affiliate only with firms that were well capitalized and well managed and had internal controls that adequately managed financial and operational risk, and only if the institutions' safety and soundness were unimpaired.
State Financial, with total consolidated assets of approximately $1.5 billion, operates one depository institution
, State Bank, with branches in Wisconsin and Illinois.
When should depository institutions
recognize loan losses ?
Passage of the 1994 Reigle-Neal interstate banking legislation spurred consolidation of depository institutions
. The total number of FDIC-insured commercial banks declined from 14,417 at the end of 1985 to 8,149 in 2001.
Citizens Bank is the largest depository institution
in the market, controlling approximately $291.5 million in deposits, which represents approximately 45.6 percent of market deposits.
With the exit of the Reserve Banks, depository institution
customers of the noncash collection service could instead use a private-sector service provider, such as the Depository Trust Company or a correspondent bank, to collect their definitive municipal bonds and coupons or could present these items for payment directly to the paying agent.