Significant Legislation (2)
August 10, 2009 – 1:28 amElectronic Funds Transfer Act of 1978 (EFTA)
Established the roles and responsibilities of the parties involved in electronic funds transfers (except wire transfers). Also limited consumer liability for fradulent transactions at ATMs and POS terminals.
Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRIRCA)
Created the Federal Financial Institutions Examination Council, to promote uniform supervisory and examination policies for federally insured depository institutions, including a uniform system for rating banks. It also established limits and reporting requirements for bank insider transactions.
Depository Insitutions Deregulation and Monetary Control Act of 1980 (DIDMCA)
Established NOW accounts; abolished interest rate ceilings for all but corporate demand accounts; raised FDIC insurance to $100,000; required all depository institutions to maintain reserves; allowed all depository institutions access to Fed services; priced Fed services at market rates; mandated a reduction in payment system float.
Garn-St. Germain Act of 1982 (Depository Institutions Act)
Expanded the powers of the FDIC to assist troubled banks. It established the Net Worth Certificate Program and extended the powers of thrift institutions. In response to the flood of bank failures in the early 1980s, it also began to chip away at the McFadden Act by allowing the FDIC to arrange cross-state bank mergers if suitable in-state partners could not be found.
Competitive Equality Banking Act of 1987 (CEBA)
Formally legitimized the rights of existing nonbank banks such as Sears, Roebuck & Co, and American Express, which were now able to operate limited-service banks in direct competition with commercial banks.
Expedited Funds Availability Act of 1988
Defined procedures and timing for returning checks and the maximum periods before deposited checks become available for withdrawal.
Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA)
Restored the public’s confidence in the savings and loan industry. It gave the FDIC the responsibility for insuring the deposits of thrift institutions. FIRREA expanded prohibitions against insider activities and created new Truth in Savings provisions and gave the FDIC increased flexibility in raising the insurance premiums it charged to banks and thrifts.
Taken From : Essentials of Managing Corporate Cash
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