S.Amdt. 4393

SA 4393. Mr. ROUNDS (for himself and Mr. Warner) submitted an
amendment intended to be proposed by him to the bill H.R. 6644, a bill
to increase the supply of housing in America, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. _____. KEEPING DEPOSITS LOCAL.

(a) Amount of Reciprocal Deposits That Are Not Considered
to Be Funds Obtained by or Through a Deposit Broker.--Section
29(i) of the Federal Deposit Insurance Act (12 U.S.C.
1831f(i)) is amended by striking paragraph (1) and inserting
the following:
``(1) In general.--The sum of the following amounts of
reciprocal deposits of an agent institution shall not be
considered to be

[[Page S939]]

funds obtained, directly or indirectly, by or through a
deposit broker:
``(A) An amount equal to 50 percent of the portion of the
total liabilities of the agent institution that is not more
than $1,000,000,000.
``(B) An amount equal to 40 percent of the portion, if any,
of the total liabilities of the agent institution that is
more than $1,000,000,000, but not more than $10,000,000,000.
``(C) An amount equal to 30 percent of the portion, if any,
of the total liabilities of the agent institution that is
more than $10,000,000,000, but not more than
$250,000,000,000.''.
(b) Definition of Agent Institution.--Section
29(i)(2)(A)(i)(I) of the Federal Deposit Insurance Act (12
U.S.C. 1831f(i)(2)(A)(i)(I)) is amended by striking ``found
to have a composite condition of outstanding or good'' and
inserting ``assigned a CAMELS rating of 1, 2, or 3''.
(c) FDIC Study.--
(1) In general.--The Federal Deposit Insurance Corporation
shall carry out a study on reciprocal deposits.
(2) Contents.--The study required under paragraph (1) shall
include an analysis of--
(A) how reciprocal deposits have performed since 2018,
which shall include--
(i) the use of quantitative and qualitative data;
(ii) a breakdown of the usage of reciprocal deposits by
size of insured depository institution;
(iii) the usage of reciprocal deposits during periods of
stress; and
(iv) an analysis, to the extent practicable, of end-user
depositors, such as municipalities, businesses, and non-
profit organizations, that drive demand for reciprocal
products;
(B) the relationship between reciprocal and custodial
deposits and how insured depository institutions use such
deposits; and
(C) the benefits and potential risks of reciprocal
deposits.
(3) Report.--Not later than 180 days after the date of
enactment of this Act, the Federal Deposit Insurance
Corporation 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
containing all findings and determinations made in carrying
out the study required under paragraph (1).
______