Legislation News & Report (TM) 

TheWeekInCongress.com (TM)

Managing America: Banking & Finance

TheWeekInCongress.com (TM)

Week Ending July 20, 2006

H.R.2547 To amend the Federal Deposit Insurance Act to prevent misrepresentation about deposit insurance coverage, and for other purposes.

The Federal Deposit and Insurance Act is amended to prevent false advertising using the names and abbreviations of the FDIC and derivations of the name to misrepresent a business or business effort.

The terms ‘Federal Deposit’, ‘Federal Deposit Insurance’, Federal Deposit Insurance Corporation’ or any combination of those terms as part of a business name or firm name may not be used by any person, corporation, partnership, business trust, association or other business entity nor may the terms or any FDIC sign or symbol be used as part of an advertisement, solicitation or other document. The prohibition restricts, in particular the use to represent, suggest or imply that ny deposit liability, obligation, certificate or share is insured or guaranteed by the FDIC if such liability, obligation, certificate or share is not insured or guaranteed by the FDIC.

No person may knowingly misrepresent that any deposit liability, obligation, certificate or share is federally insured if it is not nor may they misrepresent the extent to which or the manner in which any deposit liability, obligation, certificate or share is insured by the FDIC if it is not insured to the extent represented.

The FRDIC has jurisdiction over any violations including conducting investigations and enforcing the law. Federal and State law enforcement may also take action against a violator. The FDIC can order immediate cessation of any such actions that give rise to charges against the violator and may take affirmative action to prevent further violations.

A temporary prohibition of use can last until the FDIC dismisses the charges or until a cease-and-desist order expires. Civil fines can be set up to $1 million per day for a violations that occurs or continues.

Sponsor:  Rep. Albio Sires (D-NJ-13^th)

Vote: Passed House by voice vote July 16, 2007

Cost to the taxpayers: No discernible cost

Earmark Certification:   Not applicable to this bill

## All Rights Reserved. © 2007 TheWeekInCongress.com(TM)

No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)