Mission

The Federal Deposit Insurance 

Corporation (FDIC) is an independent 

agency created by the Congress to 

maintain stability and public confidence 

in the nation’s financial system by:

insuring deposits;

examining and supervising financial 

institutions for safety and soundness 

and consumer protection; and, 

managing receiverships.

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Vision

The FDIC is a recognized leader in 

promoting sound public policies, 

addressing risks in the nation’s financial 

system, and carrying out its insurance, 

supervisory, consumer protection, and 

receivership management responsibilities.

A n n u a l
R eport 20 0 8

Values*

The FDIC and its employees have a long and continuing tradition of distinguished public service. Six core

values guide FDIC employees as they strive to fulfill the Corporation’s mission and vision:

Integrity

We adhere to the highest ethical and professional standards.

Competence

We are a highly skilled, dedicated, and diverse workforce that is empowered to achieve outstanding results.

Teamwork

We communicate and collaborate effectively with one another and with other regulatory agencies.

Effectiveness

We respond quickly and successfully to risks in insured depository institutions and the financial system.

Accountability

We are accountable to each other and to our stakeholders to operate in a financially responsible and

operationally effective manner.

Fairness

We respect individual viewpoints and treat one another and our stakeholders with impartiality, dignity

and trust.

*Values have been updated for consistency with the FDIC’s 2008-2013 Strategic Plan.

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Federal Deposit Insurance Corporation

550 17th Street, NW Washington, DC 20429 Office of the Chairman

June 4, 2009

Dear Sir/Madam,

In accordance with:

• the provisions of section 17(a) of the Federal Deposit Insurance Act,

• the Chief Financial Officers Act of 1990, Public Law 101-576,

• the Government Performance and Results Act of 1993,

• the provisions of Section 5 (as amended) of the Inspector General Act of 1978, and

• the Reports Consolidation Act of 2000,

The Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2008 Annual Report

(also referred to as the Performance and Accountability Report), which includes the audited

financial statements of the Deposit Insurance Fund and the Federal Savings and Loan Insurance

Corporation Resolution Fund.

In accordance with the Reports Consolidation Act of 2000, the FDIC completed an assessment of

the reliability of the performance data contained in this report. No material inadequacies were

found and the data are considered to be complete and reliable.

Based on internal management evaluations, and in conjunction with the results of independent

financial statement audits, the FDIC can provide reasonable assurance that the objectives of

Section 2 (internal controls) and Section 4 (financial management systems) of the Federal

Managers’ Financial Integrity Act of 1982 have been achieved, and that the FDIC has no material

weaknesses. Additionally, the U.S. Government Accountability Office did not identify any

significant deficiencies in the FDIC’s internal controls for 2008. We are committed to maintaining

our effective internal controls corporate-wide in 2009.

Sincerely,

Sheila C. Bair

Chairman

Sincerely,

Sheila C Bair

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives

2 0 0 8 A N N U A L R E P O R T
Message from the Chairman 5

Message from the Chief Financial Officer 8

FDIC Celebrates 75 Years as a Pillar of the American Banking System 11

1. Management’s Discussion and Analysis 25

The Year in Review 25

Insurance 25

Supervision and Consumer Protection 31

Resolutions and Receiverships 44

Effective Management of Strategic Resources 49

2. Financial Highlights 53

Deposit Insurance Fund Performance 53

Investment Spending 56

3. Performance Results Summary 57

Summary of 2008 Performance Results by Program 57

2008 Budget and Expenditures by Program 60

Performance Results by Program and Strategic Goal 61

Prior Years’ Performance Results 70

Program Evaluation 77

4. Financial Statements and Notes 79

Deposit Insurance Fund (DIF) 79

FSLIC Resolution Fund (FRF) 103

Government Accountability Office’s Audit Opinion 113

Management’s Response 120

Overview of the Industry 122

5. Management Control 125

Enterprise Risk Management 125

Material Weaknesses 126

Management Report on Final Actions 126

6. Appendices 127

A.Key Statistics 127

B. More About the FDIC 141

C.Office of Inspector General’s Assessment of the Management

and Performance Challenges Facing the FDIC 150

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