Question

The FDIC may require an undercapitalized bank to I. provide the FDIC with a capital restoration plan. II. cease acquiring brokered deposits. III. obtain FDIC approval for all acquisitions. IV. suspend dividends and management fees. V. suspend payments on subordinated debt.

Answer 1

Answer:

I II III and IV

Explanation:

The FDIC is the Federal deposit insurance corporation. The primary purpose of the FDIC is to insure deposit in the banks and thrifts institutions in the event of a bank failures. The FDIC requires undercapitalized banks to provide a plan of capital/fund restoration to the FDIC, halt the acquiring of brokered deposits, obtain FDIC approval for any transaction and also to suspend all dividends and management fees while undercapitalized.