Federal Deposit Insurance Corporation

550 17th Street, N.W., Washington, D.C. 20429-9990 Deputy to the Chairman and CFO

 August 14, 2012

MEMORANDUM TO: The Board of Directors

FROM: Steven O. App

Deputy to the Chairman and 

Chief Financial Officer

Craig R. Jarvill

Director, Division of Finance

SUBJECT: Second Quarter 2012 CFO Report to the Board 

The attached report highlights the Corporation’s financial activities and results for the quarter ended

June 30, 2012. 

Executive Summary

 During the second quarter of 2012, the Deposit Insurance Fund (DIF) balance increased by 

$7.4 billion, from $15.3 billion to $22.7 billion. This quarterly increase was primarily due to 

$4.0 billion in revenue from excess Debt Guarantee Program (DGP) fees previously held as 

systemic risk deferred revenue, $2.9 billion in assessment revenue, and a decrease in the 

provision for insurance losses of $807 million, partially offset by $407 million in operating 

expenses. Over the ten consecutive quarters since the beginning of 2010, the fund balance 

has increased a total of $43.6 billion. 

 During the second quarter of 2012, the FDIC was named receiver for 15 failed institutions. 

The combined assets at inception for these institutions totaled approximately $2.8 billion with a 

total estimated loss of $520 million. The corporate cash outlay during the second quarter for 

these failures was approximately $463 million. 

 Through June 30, 2012, overall Corporate Operating Budget expenditures were below budget 

by 19 percent ($299 million). This variance was primarily the result of lower-than-budgeted 

spending for contractual services and operations at the site of failed financial institutions in the 

Receivership Funding component.
2

I. Corporate Fund Financial Results (See pages 8-9 for detailed data and charts.)

Deposit Insurance Fund 

 For the six months ended June 30, 2012, the DIF’s comprehensive income totaled $10.9 

billion compared to comprehensive income of $11.3 billion for the same period last year. This 

$0.4 billion year-over-year decrease was mostly due to a $4.4 billion year-to-year swing in loss 

provisions (a negative $795 million in 2012 vs. a negative $5.2 billion in 2011), offset by a $4.0 

billion increase in recognition of DGP deferred revenue.

 The DIF recognized revenue of $4.0 billion for a portion of DGP guarantee fees previously 

held as systemic risk deferred revenue. The $4.0 billion relates to fees associated with debt 

that matured in the first half of 2012. In addition, an equal amount of cash was transferred 

from “Cash and investments - restricted - systemic risk” to DIF’s “Cash and cash equivalents”. 

The DIF had previously recognized $2.6 billion in revenue at year-end 2011 relating to fees on 

debt guarantees that had expired. Through June 30, 2012, $6.6 billion has been transferred 

from systemic risk deferred revenue and $1.7 billion remains as deferred.

 The remaining guaranteed debt outstanding from the DGP is $47.3 billion at June 30, 2012, 

down from the year-end 2011 balance of $167.4 billion. The last guaranteed debt covered 

under the DGP will expire on December 31, 2012. 

 The provision for insurance losses was negative $795 million for the first half of 2012. The 

negative provision primarily resulted from a $876 million reduction in the contingent loss 

reserve due to the improvement in the financial condition of institutions that were previously 

identified to fail offset by a $78 million increase in the estimated losses for banks that had 

previously failed.

Assessments

 During the second quarter of 2012, the DIF recognized a total of $2.9 billion in assessment 

revenue. Of this amount, $3.2 billion represented the estimate for second quarter 2012 

insurance coverage—$2.7 billion was recognized for those institutions that prepaid 

assessments and $454 million was recorded as a receivable from those institutions that did 

not have prepaid assessments available for offset. Additionally, a net adjustment of $236 

million was recognized that reduced assessment revenue. This adjustment consisted of $30 

million in prior period amendments and a $266 million decrease to the estimate for first quarter 

2012 insurance coverage that was recorded at March 31, 2012. The latter adjustment was 

due to lower than estimated growth in the assessment base and lower average assessment 

rates. 

 On June 29, 2012, the FDIC collected $273 million in DIF assessments for first quarter 2012 

insurance coverage. Unearned revenue (prepaid assessments) totaled $11.5 billion on June 

30, 2012.
3

 

$1,087

$2,593 $3,196

$8,622

$3,262

$3,302

$3,461

$3,397

$3,432

$3,450

$3,404

$3,298

$3,385

$3,142

$3,168

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

$ in Millions

Quarterly Assessments Premiums

(based on insurance coverage period)

FSLIC Resolution Fund (FRF)

 During the second quarter, the FRF’s cash and cash equivalents increased by $17 million

primarily due to the release of the cash collateral related to a reserve held by Fannie Mae. 

The reserve resulted from swap transactions where the former Resolution Trust Corporation 

(RTC) received mortgage-backed securities in exchange for multi-family mortgage loans. The 

RTC supplied credit enhancement cash reserves for the mortgage loans to cover future credit 

losses over the remaining life of the loans. Pursuant to the agreement with Fannie Mae, the 

FRF will remain responsible for reimbursement to Fannie Mae for losses on the pool of 

mortgage loans. There have been no losses in the last ten years and the likelihood of future 

losses is remote.

II. Investment Results (See pages 10-11 for detailed data and charts.)

Total DIF Portfolio Liquidity

 The total liquidity available to the DIF is the sum of the DIF investment portfolio ($37.9 billion) 

and the DGP investment portfolio ($945 million). Consequently, the total liquidity (total market 

value including accrued interest) of both DIF-related investment portfolios stood at $38.8 billion 

on June 30, 2012, down $3.6 billion from $42.4 billion on December 31, 2011.

Estimated

Includes $5.5 billion

Special Assessment
4

 

DIF Investment Portfolio

 On June 30, 2012, the DIF investment portfolio stood at $37.9 billion (total market value), up 

$0.3 billion from its December 31, 2011, balance of $37.6 billion. The modest increase 

primarily reflects the aforementioned $4.0 billion fund transfer from the DGP portfolio on June 

29, 2012, receivership dividend receipts, and other inflows, largely offset by outflows for 

funding initial resolution payments, operating expenses, and other payments related to 

receivership activities.

 On June 30, 2012, the DIF investment portfolio’s yield was 0.46 percent, up five basis points 

from its December 31, 2011, yield of 0.41 percent. During the first half of 2012, newly 

purchased Treasury securities, including some higher yielding Treasury Inflation-Protected 

Securities (TIPS), had higher yields than maturing securities, hence the rise in portfolio yield.

 In accordance with the approved second quarter 2012 investment strategy, staff purchased a 

total of four Treasury securities on two occasions during the quarter, consisting of two- shortmaturity conventional Treasury securities and two TIPS. The four securities had a total par 

value of $4.8 billion, a weighted average yield of 0.62 percent (including TIPS at their potential 

yield), and a weighted average maturity (WAM) of 1.47 years.

DGP Investment Portfolio

 On June 30, 2012, the DGP investment portfolio stood at $945 million (total market value), 

down substantially from its December 31, 2011, balance of $4.8 billion, again due to the 

aforementioned transfer of DGP funds into the DIF investment portfolio. To facilitate the 

transfer of these funds, near quarter-end, staff sold eight Treasury securities from the DGP 

investment portfolio. The security sales had total proceeds of $2.6 billion; the securities had a 

weighted average yield of 0.24 percent, a WAM of 0.62 years, and a weighted average 

duration of 0.60 years.
5

III. Budget Results (See pages 12-13 for detailed data.)

Approved Budget Modifications

The 2012 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other 

officials the authority to make certain modifications to the 2012 Corporate Operating Budget. 

In accordance with the authority delegated by the Board of Directors, the CFO in May 2012 

approved modifications to the Salaries and Compensation budget authority of divisions and 

offices within the Ongoing Operations budget component based on an analysis of year-to-date 

spending for salaries, bonuses/lump-sum payments, and fringe benefits. That reallocation 

realigned existing budget authority among most divisions and offices, but resulted in no 

change to the total corporate budget for that expense category.

Following that budget reallocation, the unused amounts remaining within the Corporate 

Unassigned budgets for the Ongoing Operations and the Receivership Funding budget 

components were $23,948,963 and $113,079,673, respectively.

Spending Variances

Significant spending variances by major expense category and division/office are discussed 

below. Significant spending variances for the six months ending June 30, 2012, are defined 

as those that either (1) exceed the YTD budget by $2 million and represent more than three 

percent of a major expense category or total division/office budget; or (2) are under the YTD 

budget for a major expense category or division/office by an amount that exceeds $3 million 

and represents more than five percent of the major expense category or total division/office 

budget. 

Significant Spending Variances by Major Expense Category

Ongoing Operations

There was a significant spending variance in three major expense categories during the 

second quarter in the Ongoing Operations component of the 2012 Corporate Operating 

Budget:

 Outside Services - Personnel expenditures were approximately $19 million, or 14 percent, 

less than budgeted. The CIO Council spent $6 million less than budgeted due to timing 

differences between planned and actual expenditures for work on approved CIO Council 

projects. The Office of Complex Financial Institutions (CFI) spent $3 million less than 

budgeted as it continued to refine its contract spending requirements. The Office of 

Inspector General (OIG) spent $3 million less than budgeted due to changes in workload 

requirements that resulted in lower-than-budgeted spending on accounting and auditing 

fees. The Division of Insurance and Research (DIR) spent $2 million less than budgeted 

due to a modified strategy for the Failed Bank Insight Project, resulting in the use of 

internal resources rather than contract funds. In addition, Corporate University spent $2

million less than budgeted, largely due to lower-than-projected expenses for various 

training and development projects.

 Building expenditures were approximately $4 million, or 9 percent, less than budgeted. 

The Division of Administration (DOA) spent $4 million less than budgeted, largely due to 

delays in awarding the contract to upgrade the National Data Center and a change in the 

design approach for the 550 HVAC project, which will result in some expenses being 

incurred later than originally planned.
6

 Travel expenditures were approximately $4 million, or 7 percent, less than budgeted. The 

Division of Risk Management Supervision (RMS) spent $2 million less than budgeted, 

largely due to vacancies in non-permanent examination positions, resulting in lower regular 

duty and relocation travel expenses. Corporate University’s Corporate Employee Program 

(CEP) spent $1 million less than budgeted due primarily to less travel than planned by 

Financial Institution Specialists in the CEP. 

Receivership Funding

The Receivership Funding component of the 2012 Corporate Operating Budget includes 

funding for expenses that are incurred in conjunction with institution failures and the 

management and disposition of the assets and liabilities of the ensuing receiverships, except 

for salary and benefits expenses for permanent employees assigned to the receivership 

management function.

There were significant spending variances in five of the seven major expense categories 

through the second quarter in the Receivership Funding component of the 2012 Corporate 

Operating Budget:

 Salaries and Compensation ($26 million or 20 percent, less than budgeted).

 Outside Services-Personnel ($179 million or 39 percent, less than budgeted).

 Buildings ($27 million or 57 percent, less than budgeted).

 Other Expenses ($9 million or 31 percent, less than budgeted).

 Travel ($6 million or 32 percent, less than budgeted).

The variance in the Outside Services-Personnel expense category was due to less costly 

resolutions and lower-than-anticipated asset management and marketing costs and contract 

support costs for failed bank resolutions. The variance in the Buildings expense category 

occurred as a result of shorter-than-expected operations at the site of failed banks. The 

variance in the Salaries and Compensation category was attributable to vacancies in budgeted 

non-permanent positions, primarily in the temporary satellite offices. The variance in the 

Travel category was due to lower-than-anticipated travel expenses attributed to the proximity 

of failed banks to the temporary satellite offices.

Significant Spending Variances by Division/Office1

Six organizations had significant spending variances through the end of the second quarter

2012:

 DRR spent $229 million, or 37 percent, less than budgeted, mostly due to less-thanbudgeted spending for resolution and receivership management activities. Over recent 

quarters, the size of financial institution failures has been below levels anticipated during 

the 2012 budget formulation process.

 The Legal Division spent $19 million, or 12 percent, less than budgeted. Approximately $18

million of this variance was in the Receivership Funding budget component and was 

 

1

Information on division/office variances reflects variances in both the Corporate Operating and Investment 

Budgets.
7

largely attributable to lower-than-budgeted spending for outside legal services and slowerthan-projected hiring to fill budgeted positions.

 The CIO Council spent $9 million, or 21 percent, less than budgeted, largely due to timing 

differences between planned and actual expenditures for approved CIO Council projects.

 OIG spent $6 million, or 28 percent, less than budgeted. OIG operated for virtually all of 

the fourth quarter in 2011 under a continuing resolution which effectively froze OIG 

spending at its FY 2011 appropriation level. These funding limitations precluded the OIG 

from filling vacant authorized positions and executing certain procurement actions, thus 

resulting in lower-than-anticipated expenditures in 2012.

 DIR spent $4 million, or 17 percent, less than budgeted largely due to a substantial number 

of vacancies in budgeted positions and a modified strategy for the Failed Bank Insights 

Project that will make use of predominantly internal resources rather than contract 

resources to carry out the project.

 CFI spent $4 million, or 13 percent, less than budgeted. This variance was attributable to 

lower-than-budgeted spending for contractual services and slower-than-projected hiring to 

fill budgeted positions.

Other Matters

In conjunction with the 2012 Budget Resolution provision relating to “administrative 

adjustments to the salaries and compensation expense category”, an analysis of 2012 funding 

requirements for employee pay and benefits was completed. The analysis determined that 

those costs had been under-estimated during the preparation of the 2012 Corporate Operating 

Budget by approximately $1.1 million and $0.6 million in the Ongoing Operations and 

Receivership Funding budget components, respectively. The CFO elected not to exercise his 

delegated authority to increase the 2012 Corporate Operating Budget due to expectations that 

projected vacancies in budgeted positions will likely offset this shortfall during the year. 

Accordingly, no changes were made to either the Ongoing Operations or Receivership 

Funding budget authority under this provision of the Board Resolution.
FDIC CFO REPORT TO THE BOARD – Second Quarter 2012

Fund Financial Results ($ in Millions) 

8

Balance Sheet

Quarterly Year-Over-Year

Jun-12 Mar-12 Change Jun-11 Change

Cash and cash equivalents $ 4,137 $ 741 $ 3,396 $ 16,631 $ (12,494)

Cash and investments - restricted - systemic risk 945 4,723 (3,778) 7,363 (6,418)

Investment in U.S. Treasury obligations, net 33,314 33,937 (623) 20,820 12,494

Trust preferred securities 2,314 2,329 (15) 2,346 (32)

Assessments receivable, net 454 318 136 205 249

Receivables and other assets - systemic risk 1,723 1,974 (251) 1,901 (178)

Interest receivable on investments and other assets, net 449 505 (56) 279 170

Receivables from resolutions, net 21,855 28,963 (7,108) 29,126 (7,271)

Property and equipment, net 386 389 (3) 405 (19)

Total Assets $ 65,577 $ 73,879 $ (8,302) $ 79,076 $ (13,499)

Accounts payable and other liabilities 348 364 (16) 382 (34)

Unearned revenue - prepaid assessments 11,474 14,002 (2,528) 23,787 (12,313)

Liabilities due to resolutions 24,185 32,000 (7,815) 30,912 (6,727)

Debt Guarantee Program liabilities - systemic risk - - - 60 (60)

Deferred revenue - systemic risk 2,668 6,698 (4,030) 9,131 (6,463)

Postretirement benefit liability 188 188 - 166 22

Contingent liability for anticipated failures 4,017 5,330 (1,313) 10,349 (6,332)

Contingent liability for systemic risk - - - 73 (73)

Contingent liability for litigation losses 4 5 (1) 300 (296)

Total Liabilities $ 42,884 $ 58,587 $ (15,703) $ 75,160 $ (32,276)

FYI: Unrealized gain (loss) on U.S. Treasury investments, net (1) 92 (93) 62 (63)

FYI: Unrealized gain (loss) on trust preferred securities 352 367 (15) 385 (33)

FYI: Unrealized postretirement benefit (loss) gain (34) (34) - (19) (15)

Fund Balance $ 22,693 $ 15,292 $ 7,401 $ 3,916 $ 18,777

Deposit Insurance Fund
9

Fund Financial Results - continued ($ in Millions) 

* Excludes WAMU with total assets of $299 billion and no estimated loss to the DIF.

Assets at Inception and Estimated Losses to the DIF

Year of 

Failure

Bank 

Failures

Total Assets 

(in billions)

Total Estimated 

Losses 

(in billions)

Total Estimated 

Losses as a % of 

Total Assets

2008* 24 $62.5 $20.1 32%

2009 140 $171.2 $37.1 22%

2010 157 $93.2 $22.4 24%

2011 92 $36.6 $8.0 22%

Jun-2012 31 $7.6 $1.8 24%

Income Statement (year-to-date)

Quarterly Year-Over-Year

Jun-12 Mar-12 Change Jun-11 Change

Assessments earned $ 6,627 $ 3,694 $ 2,933 $ 6,647 $ (20)

Systemic risk revenue (3) 10 (13) (25) 22

Interest on U.S. Treasury obligations 101 20 81 65 36

Other revenue 4,160 64 4,096 147 4,013

Total Revenue $ 10,885 $ 3,788 $ 7,097 $ 6,834 $ 4,051

Operating expenses 867 460 407 858 9

Systemic risk expenses (3) 10 (13) (25) 22

Provision for insurance losses (795) 12 (807) (5,184) 4,389

Insurance and other expenses 2 1 1 1 1

Total Expenses and Losses $ 71 $ 483 $ (412) $ (4,350) $ 4,421

Net Income 10,814 3,305 7,509 11,184 (370)

Unrealized gain (loss) on U.S. Treasury investments, net (49) 44 (93) 35 (84)

Unrealized gain (loss) on trust preferred securities 101 116 (15) 49 52

Unrealized postretirement benefit gain (loss) - - - - -

Comprehensive Income $ 10,866 $ 3,465 $ 7,401 $ 11,268 $ (402)

Deposit Insurance Fund Selected Financial Data

Quarterly Year-Over-Year

Jun-12 Mar-12 Change Jun-11 Change

Cash and cash equivalents $ 3,596 $ 3,579 $ 17 $ 3,525 $ 71

Accumulated deficit (124,461) (124,281) (180) (124,278) (183)

Total resolution equity 3,595 3,595 - 3,548 47

Total revenue 2 1 3 (1)

Operating expenses 3 1 2 1

Goodwill litigation expenses 181 - 33 148

Recovery of tax benefits - - 26 (26)

Net Income (Loss) $ (180) $ - $ (54) $ (126)

FSLIC Resolution Fund

Receivership Selected Statistics June 2012 vs. June 2011

$ in millions

Jun-12 Jun-11 Change Jun-12 Jun-11 Change Jun-12 Jun-11 Change

Total Receiverships 454 384 70 4 8 (4) 458 392 66

Assets in Liquidation $ 19,516 $ 24,001 $ (4,485) $ 7 $ 25 $ (18) $ 19,523 $ 24,026 $ (4,503)

YTD Collections $ 4,597 $ 6,580 $ (1,983) $ 17 $ 1 $ 16 $ 4,614 $ 6,581 $ (1,967)

YTD Dividend/Other Pymts - Cash $ 2,319 $ 5,554 $ (3,235) $ - $ - $ - $ 2,319 $ 5,554 $ (3,235)

DIF FRF ALL FUNDS
10

6/30/12 12/31/11 Change

Par Value $37,148 $36,784 $364

Amortized Cost $37,703 $37,337 $366

Total Market Value (including accrued interest) $37,875 $37,580 $295

Primary Reserve 1 $37,875 $37,580 $295

Primary Reserve % of Total Portfolio 100.0% 100.0% 0.0%

Yield-to-Maturity 2 0.46% 0.41% 0.05%

Weighted Average Maturity (in years) 0.63 0.66 (0.03)

Effective Duration (in years) 3 

 Total Portfolio 0.57 0.62 (0.05)

 Available-for-Sale Securities 0.73 0.73 0.00

 Held-to-Maturity Securities 4not applicable not applicable not applicable

6/30/12 12/31/11 Change

Debt Guarantee Program

 Par Value $935 $4,764 ($3,829)

 Book Value $940 $4,807 ($3,867)

 Total Market Value (including accrued interest) $945 $4,827 ($3,882)

 Yield-to-Maturity 0.12% 0.11% 0.01%

Weighted Average Maturity (in years) 0.13 0.21 (0.08)

FRF-FSLIC

 Book Value 5 $3,422 $3,377 $45

 Yield-to-Maturity 0.02% 0.00% 0.02%

 Weighted Average Maturity overnight overnight no change

6/30/12 12/31/11 Change

Book Value 6 $16,852 $17,052 ($200)

Effective Annual Yield 0.12% 0.10% 0.02%

Weighted Average Maturity (in days) 23 9 14

(Dollar Values in Millions)

4

 In early August 2008, management reclassified all of the DIF portfolio's HTM securities as AFS securities effective as of June 30, 

2008, because the FDIC could no longer assert it had the positive intent and ability to hold its HTM securities until their maturity 

dates.

6

 Due to the short-term nature of the NLF, the portfolio's Book and Market Values are identical for reporting purposes.

Summary of Other Corporate Investment Portfolios

(Dollar Values in Millions)

5

 Due to the current short-term nature of this portfolio, its respective Par, Book, and Market Values are identical for reporting 

purposes.

2

 The Yield-to-Maturity includes the potential yield of Treasury Inflation-Protected Securities (TIPS), which presently assumes an 

average 2.0% annual increase in the CPI over the remaining life of each TIPS.

3

 For each TIPS, an estimated 80 percent "yield beta" factor is applied to its real yield duration to arrive at an estimated effective 

duration.

Deposit Insurance Fund Portfolio Summary

(Dollar Values in Millions)

1

 Primary Reserve is the total market value (including accrued interest) of overnight investments, available-for-sale securities, and 

held-to-maturity securities maturing within three months.

National Liquidation Fund (NLF) Investment Portfolio Summary
11

Investment Strategies

Deposit Insurance Fund Strategy for the 2nd Quarter 2012

Purchase up to $7 billion (par value) of available-for-sale (AFS) securities with maturity 

dates between September 30, 2012, and March 31, 2015, subject to the following 

additional restrictions: no more than $5 billion (par value) of such securities shall have 

maturity dates beyond March 31, 2013; no more than $3 billion (par value) of such 

securities shall have maturity dates beyond March 30, 2014; and no more than $3 billion 

(adjusted par value) of such securities shall consist of Treasury Inflation-Protected 

Securities.

Strategy Changes for 3rd Quarter 2012

Purchase up to $9 billion (par value) of available-for-sale (AFS) securities with maturity 

dates between December 31, 2012, and December 31, 2015, subject to the following 

additional restrictions: no more than $6 billion (par value) of such securities shall have 

maturity dates beyond December 31, 2013; no more than $4 billion (par value) of such 

securities shall have maturity dates beyond December 31, 2014; and no more than $4 

billion (adjusted par value) of such securities shall consist of Treasury Inflation-Protected 

Securities.

Debt Guarantee Program Strategy for 2nd Quarter 2012

Overnight investments only.

Strategy Changes for 3rd Quarter 2012

Invest all available funds in overnight investments and/or in short-maturity AFS Treasury 

bills with maturities not exceeding December 27, 2012.

National Liquidation Fund Strategy for 2nd Quarter 2012

Maintain an overnight deposit target floor balance within a range of $100 million to $300 

million.

Strategically invest the remaining funds in the zero- to 12-month maturity sector.

Strategy Changes for 3rd Quarter 2012

No strategy changes for the third quarter of 2012.
12

1) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2012 spending estimates 

for approved projects. 

Annual YTD YTD % of YTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

Corporate Operating Budget 

Ongoing Operations

Salaries & Compensation $1,146,265 $566,205 $547,646 97% ($18,559)

Outside Services - Personnel 309,576 136,817 118,178 86% (18,639)

Travel 106,747 52,196 48,522 93% (3,674)

Buildings 92,102 42,481 38,738 91% (3,743)

Equipment 86,349 33,789 30,946 92% (2,843)

Outside Services - Other 20,704 9,353 7,849 84% (1,504)

Other Expenses 19,036 7,182 5,585 78% (1,597)

Total Ongoing Operations $1,780,779 $848,022 $797,464 94% ($50,558)

Receivership Funding

Salaries & Compensation $248,855 $129,681 $103,465 80% ($26,216)

Outside Services - Personnel 1,039,832 461,566 282,845 61% (178,721)

Travel 33,306 17,156 11,608 68% (5,548)

Buildings 93,967 48,023 20,750 43% (27,273)

Equipment 12,795 4,587 5,544 121% 957

Outside Services - Other 11,001 5,671 3,330 59% (2,341)

Other Expenses 60,245 30,460 21,087 69% (9,373)

Total Receivership Funding $1,500,000 $697,144 $448,630 64% ($248,514)

Total Corporate Operating Budget $3,280,779 $1,545,166 $1,246,094 81% ($299,072)

Investment Budget 1

$12,657 $6,945 $5,747 83% ($1,198)

Grand Total $3,293,436 $1,552,111 $1,251,841 81% ($300,270)

Executive Summary of 2012 Budget and Expenditures

by Major Expense Category

Through June 30, 2012

(Dollars in Thousands)
13

1) Executive Support includes the Offices of Minority and Women Inclusion, Communications (formerly Public Affairs), Ombudsman, 

Legislative Affairs, Corporate Risk Management, and International Affairs.

2) Executive Offices include the offices of the Chairman, Vice Chairman, Independent Director, Deputy to the Chairman and Chief 

Operating Officer, Deputy to the Chairman and Chief Financial Officer, and Deputy to the Chairman for External Affairs.

3) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2012 spending estimates 

for approved projects. 

Annual YTD YTD % of YTD YTD

Division/Office Budget Budget Expenditures Budget Used Variance

 Corporate Operating Budget 

 Resolutions & Receiverships $1,228,643 $619,899 $390,983 63% ($228,916)

 Risk Management Supervision 535,067 265,951 254,742 96% (11,209)

 Legal 304,470 151,709 132,807 88% (18,902)

 Information Technology 278,532 124,419 124,772 100% 353

 Administration 274,387 128,078 121,438 95% (6,640)

 Depositor & Consumer Protection 159,841 78,812 75,923 96% (2,889)

 CIO Council 84,521 41,531 32,843 79% (8,688)

 Complex Financial Institutions 61,167 29,847 26,072 87% (3,775)

 Insurance & Research 46,445 22,630 18,788 83% (3,842)

 Finance 42,170 20,547 18,288 89% (2,259)

 Inspector General 41,743 21,142 15,148 72% (5,994)

 Executive Support 1

30,996 14,178 12,135 86% (2,043)

 Corporate University - Corporate 23,408 11,612 9,881 85% (1,731)

 Corporate University - CEP 20,407 9,084 7,118 78% (1,966)

 Executive Offices 2

9,253 5,727 5,155 90% (572)

 Government Litigation 2,700 0 0 N/A 0

 Corporate Unassigned 137,029 0 0 N/A 0

 Total, Corporate Operating Budget $3,280,779 $1,545,166 $1,246,094 81% ($299,072)

 Investment Budget 3

 Information Technology $11,824 $6,528 $5,477 84% ($1,051)

 Risk Management Supervision 238 214 169 79% (45)

 Corporate University - Corporate 345 203 101 50% (102)

 Administration 250 0 0 N/A 0

 Total, Investment Budget 3

$12,657 $6,945 $5,747 83% ($1,198)

 Combined Division/Office Budgets

 Resolutions & Receiverships $1,228,643 $619,899 $390,983 63% ($228,916)

 Risk Management Supervision 535,305 266,165 254,911 96% (11,254)

 Legal 304,470 151,709 132,807 88% (18,902)

 Information Technology 290,356 130,947 130,249 99% (698)

 Administration 274,637 128,078 121,438 95% (6,640)

 Depositor & Consumer Protection 159,841 78,812 75,923 96% (2,889)

 CIO Council 84,521 41,531 32,843 79% (8,688)

 Complex Financial Institutions 61,167 29,847 26,072 87% (3,775)

 Insurance & Research 46,445 22,630 18,788 83% (3,842)

 Finance 42,170 20,547 18,288 89% (2,258)

 Inspector General 41,743 21,142 15,148 72% (5,994)

 Executive Support 1

30,996 14,178 12,135 86% (2,043)

 Corporate University - Corporate 23,753 11,815 9,982 84% (1,833)

 Corporate University - CEP 20,407 9,084 7,118 78% (1,966)

 Executive Offices 2

9,253 5,727 5,155 90% (572)

 Government Litigation 2,700 0 0 N/A 0

 Corporate Unassigned 137,029 0 0 N/A 0

 Grand Total $3,293,436 $1,552,111 $1,251,841 81% ($300,270)

Executive Summary of 2012 Budget and Expenditures

by Budget Component and Division/Office

Through June 30, 2012

(Dollars in Thousands)