text: Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, or FIRREA, an FDIC- 
  insured depository institution can be held liable for any losses incurred by the FDIC in connection with (1) the 
  “default” of one of its FDIC-insured subsidiaries or (2) any assistance provided by the FDIC to one of its FDIC- 
  insured subsidiaries “in danger of default.” “Default” is defined generally as the appointment of a conservator or 
  receiver, and “in danger of default” is defined generally as the existence of certain conditions indicating that a 
  default is likely to occur in the absence of regulatory assistance. 
  
  The Federal Deposit Insurance Act, or FDIA requires that the FDIC review (1) any merger or consolidation by 
  or with an insured bank, or (2) any establishment of branches by an insured bank. The FDIC is also empowered to 
  regulate interest rates paid by insured banks. Approval of the FDIC is also required before an insured bank retires 
  any part of its common or preferred stock, or any capital notes or debentures. Insured banks that are also members of 
  the Federal Reserve System, however, are regulated with respect to the foregoing matters by the Federal Reserve 
  System. 