Page:United States Statutes at Large Volume 104 Part 6.djvu/478

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104 STAT. 4868 PUBLIC LAW 101-647—NOV. 29, 1990 appointed conservator or receiver, the Federal Deposit Insurance Corporation;". SEC. 2523. REGULATION OF GOLDEN PARACHUTES AND OTHER BENEFITS WHICH ARE SUBJECT TO MISUSE. (a) FDIC INSURED DEPOSITORY INSTITUTIONS. —Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by inserting after subsection (j) the following new subsection: " (k) AUTHORITY TO REGULATE OR PROHIBIT CERTAIN FORMS OF BENEFITS TO INSTITUTION-AFFIUATED PARTIES.— "(1) GOLDEN PARACHUTES AND INDEMNIFICATION PAYMENTS. — The Corporation may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment. "(2) FACTORS TO BE TAKEN INTO ACCOUNT. —The Corporation shall prescribe, by regulation, the factors to be considered by the Corporation in taking any action pursuant to paragraph (1) which may include such factors as the following: "(A) Whether there is a reasonable basis to believe that the institution-affiliated party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the depository institution or depository institution holding company that has had a material affect on the financial condition of the institution. "(B) Whether there is a reasonable basis to believe that the institution-affiliated party is substantially responsible for the insolvency of the depository institution or depository institution holding company, the appointment of a conservator or receiver for the depository institution, or the depository institution's troubled condition (as defined in the regulations prescribed pursuant to section 32(f)). "(C) Whether there is a reasonable basis to believe that the institution-affiliated party has materially violated any applicable Federal or State banking law or regulation that has had a material affect on the financial condition of the institution. "(D) Whether there is a reasonable basis to believe that the institution-affiliated party has violated or conspired to violate— "(i) section 215, 656, 657, 1005, 1006, 1007, 1014, 1032, or 1344 of title 18, United States Code; or "(ii) section 1341 or 1343 of such title affecting a federally insured financial institution. "(E) Whether the institution-affiliated party was in a position of managerial or fiduciary responsibility. "(F) The length of time the party was affiliated with the insured depository institution or depository institution holding company and the degree to which— "(i) the payment reasonably reflects compensation earned over the period of employment; and "(ii) the compensation involved represents a reasonable payment for services rendered. "(3) CERTAIN PAYMENTS PROHIBITED. —No insured depository institution or depository institution holding company may prepay the salary or any liability or legal expense of any institution-affiliated party if such payment is made—