The FDIC’s Board of Directors voted to revise its Memorandum of Understanding with the primary federal banking regulators to enhance the FDIC’s existing backup authorities over insured depository institutions that the FDIC does not directly supervise. The revised agreement will improve the FDIC’s ability to access information necessary to understand, evaluate, and mitigate its exposure to insured depository institutions, especially the largest and most complex firms. Specifically, the revised MOU gives the FDIC backup supervision authority under an expanded list of circumstances, including when the insurance pricing system suggests an insured depository institution might be at higher risk, when institutions are defined as “large” under international regulatory guidelines, or when large, interconnected bank holding companies are defined as “systemic” by the financial reform legislation pending in Congress. The MOU broadens the definition of insured depository institutions (“IDI”) to include four groups. Once identified, problem IDIs and heightened risk IDIs will trigger targeted reviews for insurance purposes. At large, complex IDIs, and TLGP-IDIs, the FDIC will establish a continuous on-site full-time staff presence with the number of staff depending on the size of the IDIs. The MOU also covers how the FDIC and the other agencies will coordinate activities on an on-going basis, and handle differences in CAMELS ratings.