S.Amdt. 3885

SA 3885. Mrs. HUTCHISON submitted an amendment intended to be
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail'',
to protect the American taxpayer by ending bailouts, to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

On page 370, strike lines 11 through 13 and insert the
following:
(b) Effective Date.--This section, and the amendments made
by this section, shall take effect on the transfer date.

SEC. 333. STUDY ON THE IMPACT OF EXCLUDING CORE DEPOSITS FROM
TREATMENT AS BROKERED DEPOSITS.

(a) Study.--The Board of Governors shall conduct a study to
evaluate--
(1) the treatment of core deposits as brokered deposits for
the purpose of calculating the insurance premiums of banks;
(2) the potential impact on the Deposit Insurance Fund of
ceasing to treat core deposits as brokered deposits;
(3) an assessment of the merits and drawbacks of the
treatment of core deposits as brokered deposits, with respect
to the economy and banking sector of the United States;
(4) the potential stimulative effect on local economies of
excluding core deposits from treatment as brokered deposits;
and
(5) the competitive parity between large institutions and
community banks that

[[Page S3375]]

could result from excluding core deposits from treatment as
brokered deposits.
(b) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Board of Governors shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report on the results of
the study under subsection (a) that includes legislative
recommendations, if any, to address competitive imbalances as
a result of the treatment of core deposits as brokered
deposits.
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