2011

A N N U A L R E P O R T

49

performance

3. performance results summ

Summary of 2011 Performanc

Program Area Performance Resul

Insurance ★ Updated the FDIC Board of Directors on loss, income, and reserve ratio projections for the 

Deposit Insurance Fund at the April and October meetings. 

★ Briefed the FDIC Board of Directors in April and October on progress in meeting the goals 

of the Restoration Plan. Based upon current fund projections, no changes to assessment 

rate schedules were necessary. 

★ Completed reviews of the recent accuracy of the contingent loss reserves. 

★ Hosted a risk management symposium, “Don’t Bet the Farm: Assessing the Boom in U.S. 

Farmland Prices” for agricultural lenders and other experts in agricultural finance to 

discuss risks associated with the escalating price of U.S. farmland during the past decade.

★ Researched and analyzed emerging risks and trends in the banking sector, financial 

markets, and the overall economy to identify issues affecting the banking industry and the 

deposit insurance fund. 

★ Provided policy research and analysis to FDIC leadership in support of the implementation 

of financial industry regulation, as well as support for testimony and speeches. 

★ Published economic and banking information and analyses through the FDIC Quarterly, 

FDIC Quarterly Banking Profile (QBP), FDIC State Profiles, and the Center for Financial 

Research Working Papers.

The FDIC successfully achieved 38 of the 43 

annual performance targets established in its 

2011 Annual Performance Plan. Five targets 

were deferred to a future date. There were no instances in 

which 2011 performance had a material adverse effect on 

the successful achievement of the FDIC’s mission or 

its strategic goals and objectives regarding its major 

program responsibilities.

Additional key accomplishments are noted below.
performance

50

Program Area Performance Resul

Insurance

(continued)

★ Answered 99 percent of written inquiries from consumers and bankers about FDIC deposit 

insurance coverage within 14 days.

★ Operated the Electronic Deposit Insurance Estimator (EDIE), which had 277,000 user 

sessions in 2011.

★ Amended FDIC’s deposit insurance resource materials for consumers and bankers to 

reflect the changes implemented by Section 627 of Dodd-Frank repealing Federal Reserve 

Regulation Q by updating:

X FDIC’s EDIE to reflect the Dodd-Frank Act changes and updated the English and 

Spanish tutorial for EDIE,

X FDIC Overview Video on Deposit Insurance Coverage for consumers and new 

bank employees, and 

X FDIC’s consumer and banker brochures on deposit insurance coverage.

These resources are available on the FDIC’s website with the video also available on the 

FDIC’s YouTube channel and downloadable for multimedia applications. 
2011

A N N U A L R E P O R T

51

performance

Program Area Performance Resul

Supervision and 

Consumer Protection

★ Conducted 2,734 Bank Secrecy Act examinations, including required follow-up 

examinations and visitations.

★Worked with other federal banking regulators and the Basel Committee on Banking 

Supervision to develop proposals to strengthen capital and liquidity requirements.

★ Published the Supervisory Insights journal to contribute to and promote sound principles 

and best practices for bank supervision; including a Special Foreclosure Edition that 

discussed lessons learned from the review of foreclosure practices. 

★ Among other releases, issued Financial Institution Letters (FILs) on (1) registering as a 

municipal advisor under the Securities and Exchange Commission’s new rule. In addition, 

23 disaster relief FILs were issued; (2) supervisory guidance on the Advanced Measurement 

Approach; and (3) proposed guidance on stress testing for banking organizations with 

more than $10 billion in total consolidated assets.

★ Issued an Interim Final Rule regarding resolution plans required for IDIs with $50 billion 

or more in total assets.

★ Adopted a final rule on resolution plan requirements per section 165 of Dodd-Frank. 

★ Began formulating resource plans for resolution of large insured depository institutions in 

conjunction with the other banking regulatory agencies. 

★ Revised the HMDA fair lending screening procedures to provide a broader set of 

information in support of efforts to identify institutions with significant compliance risks.

★ Developed an award that recognized financial institutions that were instrumental in 

the development of bank products that provide financial services to low- and moderateincome individuals.

★ Among other releases, issued FILs providing guidance on (1) registration of residential 

mortgage loan originators; (2) the FDIC’s new address for filing consumer complaints; and 

(3) retail foreign exchange transactions.

★ Conducted a teleconference call for the industry to review and discuss the FDIC’s 2010 

Overdraft Payment Program Supervisory Guidance, and participated in several industry 

outreach events to discuss the guidance.

★ Completed the transfer of supervisory responsibility for state-chartered thrifts on 

July 21, 2011.

★ Transferred ninety-five OTS employees to FDIC on July 21, 2011.

★ Issued the revised Circular 1431.1, “Preparing and Issuing Financial Institution Letters”, on 

March 31, 2011.

★ Completed a review of all recurring questionnaires and information requests to the 

industry and delivered a written report to the Office of the Chairman on June 30, 2011. 

Reorganized the external website so that bankers can locate Application, Notices & Filings 

more easily on the website as well as identify which forms can be completed through 

FDICconnect. The Notification of Performance of Bank Services form is scheduled to be 

released on FDICconnect on December 30, 2011.
performance

52

Program Area Performance Resul

Receivership 

Management

★ Completed on-site field work for reviews of 100 percent of the loss share and LLC 

agreements active as of December 31, 2010, to ensure full compliance with the terms and 

conditions of the agreements. Reviewed the final review reports and implemented an action 

plan to address the reports’ findings and recommendations for 75 percent of the loss-share 

reviews and 50 percent of the LLC reviews, including all reviews of agreements totaling 

more than $1.0 billion (gross book value).

★ Terminated at least 75 percent of new receiverships that are not subject to loss-share 

agreements, structured sales, or other legal impediments within three years of the date 

of failure.

★Made final decisions for 82 percent of all investigated claim areas that were within 18 

months of the institution’s failure date.

2011 Buget and Exp

(Excluding Investments)

$3,000

2,500

2,000

1,500

1,000

500

0

INSURANCE PROGRAM SUPERVISION AND

CONSUMER PROTECTION

PROGRAM

RECEIVERSHIP

MANAGMENT PROGRAM

GENERAL AND

ADMINISTRATIVE

BUDGET EXPENDITURES

The FDIC budget for 2011 totaled $3.88 billion. Excluding 

$213 million, or 6 percent, for Corporate General 

and Administrative expenditures, budget amounts 

were allocated to corporate programs as follows: $262 

million, or 7 percent, to the Insurance program; $984 

million, or 25 percent, to the Supervision and Consumer 

Protection program; and $2.4 billion, or 62 percent, to the 

Receivership Management program. 

Actual expenditures for the year totaled $2.8 billion. 

Excluding $167 million, or 6 percent, for Corporate 

General and Administrative expenditures, actual 

expenditures were allocated to programs as follows: $234 

million, or 8 percent, to the Insurance program; $875 

million, or 31 percent, to the Supervision and Consumer 

Protection program; and $1.5 billion, or 55 percent, to the 

Receivership Management program. 

2011 Budget and Expenditures (Support Allocated

Dollars in Millio
2011

A N N U A L R E P O R T

53

performance

Performance Resuts b

2011 Insurance Program Result

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

#

An

Performance Goal 

1 Respond promptly to 

all financial institution 

closings and related 

emerging issues.

Number of business 

days after an 

institution failure 

that depositors have 

access to insured 

funds either through 

transfer of deposits to 

the successor insured 

depository institution 

or depositor payout.

Insured depositor 

losses resulting from 

a financial institution 

failure.

Depositors have access to insured funds 

within one business day if the failure occurs 

on a Friday.

Depositors have access to insured funds 

within two business days if the failure occurs 

on any other day of the week.

There are no depositor losses on 

insured deposits.

No appropriated funds are required to pay 

insured depositors.

Achieved.

See pg. 35.

2 Disseminate data and 

analyses on issues 

and risks affecting 

the financial services 

industry to bankers, 

supervisors, the public, 

and other stakeholders 

on an ongoing basis.

Scope and timeliness 

of information 

dissemination on 

identified or potential 

issues and risks.

Disseminate results of research and analyses in 

a timely manner through regular publications, 

ad hoc reports, and other means.

Undertake industry outreach activities to 

inform bankers and other stakeholders about 

current trends, concerns, and other available 

FDIC resources.

Achieved.

See pg. 49.

Achieved.

See pg. 49.

3 Set assessment rates to 

restore the insurance 

fund reserve ratio 

to the statutory 

minimum of 1.35 

percent of estimated 

insured deposits by 

September 30, 2020.

Update assessment 

projections and 

recommended 

changes.

Demonstrated 

progress in achieving 

the goals of the 

Restoration Plan.

Provide updated fund projections to the FDIC 

Board of Directors by June 30, 2011, and 

December 31, 2011.

Recommend changes to deposit insurance 

assessment rates for the DIF to the FDIC 

Board as necessary.

Provide updates to the FDIC Board by June 

30, 2011, and December 31, 2011.

Achieved.

See pg. 49.

Achieved.

See pg. 49.

Achieved.

See pg. 49.

Achieved.

See pg. 35.

Achieved.

See pg. 35.

Achieved.

See pg. 35.
performance

54

2011 Insurance Program Result

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

#

An

Performance Goal 

4 Expand and 

strengthen the FDIC’s 

participation and 

leadership role in 

supporting robust 

international deposit 

insurance and banking 

systems.

Scope of information 

sharing and 

assistance available 

to international 

governmental bank 

regulatory and deposit 

insurance entities.

Undertake outreach activities to inform and 

train foreign bank regulators and deposit 

insurers.

Foster strong relationships with international 

banking regulators and associations that 

promote sound banking supervision and 

regulation, failure resolutions, and deposit 

insurance practices.

Lead the International Association of Deposit 

Insurers training on the methodology for 

assessing compliance with implementation 

of the Core Principles for Effective Deposit 

Insurance Systems.

Achieved.

See pgs. 18-21.

Achieved.

See pgs. 18-21.

Achieved.

See pg. 19.

5 Provide educational 

information to insured 

depository institutions 

and their customers 

to help them 

understand the rules 

for determining the 

amount of insurance 

coverage on deposit 

accounts.

Timeliness of 

responses to deposit 

insurance coverage 

inquiries.

Initiatives to increase 

public awareness of 

deposit insurance 

coverage changes.

Respond within two weeks to 95 percent of 

written inquires from consumers and bankers 

about FDIC deposit insurance coverage.

Conduct at least 12 telephone or inperson seminars for bankers on deposit 

insurance coverage.

Achieved.

See pg. 33.

Achieved.

See pg. 33.
2011

A N N U A L R E P O R T

55

performance

2011 Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-insured institutions are safe and sound. 

#

An

Performance Goal I

1 Conduct on-site 

risk management 

examinations to 

assess the overall 

financial condition, 

management practices 

and policies, and 

compliance with 

applicable laws and 

regulations of FDICsupervised depository 

institutions.

Percentage of required 

examinations 

conducted in 

accordance with 

statutory requirements 

and FDIC policy.

Conduct 100 percent of required risk 

management examinations within the time 

frames prescribed by statue and FDIC policy.

Achieved.

See pg. 21.

2 For all institutions 

that are assigned a 

composite Uniform 

Financial Institutions 

Rating of 3, 4, or 5, 

conduct on-site visits 

within six months 

after implementation 

of a corrective 

program. Ensure 

during these visits 

and subsequent 

examinations that the 

institution is fulfilling 

the requirements 

of the corrective 

program that has 

been implemented 

and that the actions 

taken are effectively 

addressing the 

underlying concerns 

identified during the 

examination.

Percentage of followup examinations and 

on-site visits of 3-, 4-, 

or 5-rated institutions 

conducted within 

required time frames.

Conduct 100 percent of required on-site visits 

within six months after implementation of a 

corrective program.

Achieved.

See pg. 22.
performance

56

2011 Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-insured institutions are safe and sound. 

#

An

Performance Goal I

3 Complete the 

transfer of personnel 

and supervisory 

responsibility for statechartered thrifts from 

the Office of Thrift 

Supervision to the 

FDIC in accordance 

with approved 

plans and statutory 

requirements.

Transfer of personnel 

and supervisory 

responsibility for statechartered thrifts from 

OTS to the FDIC.

Complete the transfer of supervisory 

responsibility for state-chartered thrifts by 

July 21, 2011.

Identify the OTS employees to be transferred 

and complete the transfer of those employees 

to the FDIC no later than 90 days after July 

21, 2011.

Achieved.

See pg. 51.

Achieved.

See pg. 51.

4 Assist in protecting the 

infrastructure of the 

U.S. banking system 

against terrorist 

financing, money 

laundering and other 

financial crimes.

Percentage of required 

examinations 

conducted in 

accordance with 

statutory requirements 

and FDIC policy. 

Conduct 100 percent of required Bank 

Secrecy Act examinations within the time 

frames prescribed by statute and FDIC policy.

Achieved.

See pg. 21.
2011

A N N U A L R E P O R T

57

performance

2011 Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-insured institutions are safe and sound. 

#

An

Performance Goal I

5 More closely align 

regulatory capital with 

risk and ensure that 

capital is maintained 

at prudential levels.

Implementation by 

the federal banking 

agencies of capital 

floors for banking 

organizations in 

accordance with 

the requirements of 

Section 171 of DFA.

Issuance by the federal 

banking agencies of 

proposed rules to 

implement Basel III 

regulatory capital 

enhancements.

Complete by June 30, 2011, the final rule 

addressing capital floors for banking 

organizations.

Complete by September 30, 2011, the Basel 

III Notice of Proposed Rulemaking (NPR) 

for the new definition of capital, the July 

2009 enhancements to resecuritizations risk 

weights, and securitization disclosures.

Complete by September 30, 2011, the Basel 

NPR for the new leverage ratio.

Complete by September 30, 2011, the Basel 

NPR for the new liquidity requirements.

Complete by December 31, 2011, the final 

rule on the Market Risk Amendment 

(includes finalizing alternatives to the use 

of credit ratings in accordance with 

DFA requirements).

Complete by September 30, 2011, the NPR for 

the Standardized Framework.

Achieved.

See pg. 25.

Deferred.

Deferred.

Deferred.

Deferred.

Deferred.

6 Identify and address 

risks in financial 

institutions designated 

as systemically 

important.

Establishment of 

institution monitoring 

and resolution 

planning programs for 

systemically important 

institutions.

Establish an ongoing FDIC monitoring 

program for all covered financial institutions.

Complete rulemaking to establish (with 

the Board of Governors of the Federal Reserve 

System) criteria for resolution 

plans to be submitted by systemically 

important institutions.

Achieved.

See pgs. 16-17.

Achieved.

See pg. 17.
performance

58

2011 Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-insured institutions are safe and sound. 

#

An

Performance Goal I

7 Facilitate more 

effective regulatory 

compliance so as to 

reduce regulatory 

burden on the 

banking industry, 

where appropriate, 

while maintaining 

the independence and 

integrity of the FDIC’s 

risk management and 

consumer compliance 

supervisory programs.

Issuance of revised 

corporate directive.

Completion of 

review of recurring 

questionnaires and 

information requests.

Issue by March 31, 2011, a revised corporate 

directive on the issuance of Financial 

Institution Letters (FILs) that includes 

a requirement that all FILs contain an 

informative section as to their applicability to 

smaller institutions (total assets under 

$1 billion).

Complete by June 30, 2011, a review of all 

recurring questionnaires and information 

requests to the industry and submit a report 

to FDIC management with recommendations 

on improving efficiency and ease of use, 

including a scheduled plan for implementing 

these revisions. Carry out approved 

recommendations in accordance with the plan.

Achieved.

See pg. 51.

Achieved.

See pg. 51.

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.

8 Conduct on-site 

CRA and compliance 

examinations to assess 

compliance with 

applicable laws and 

regulations by FDICsupervised depository 

institutions.

Percentage of 

examinations 

conducted in 

accordance with the 

time frames prescribed 

by FDIC policy.

Conduct 100 percent of required 

examinations within the time frames 

established by FDIC policy.

Achieved.

See pgs. 21-22.
2011

A N N U A L R E P O R T

59

performance

2011 Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-insured institutions are safe and sound. 

#

An

Performance Goal I

9 Take prompt and 

effective supervisory 

action to monitor 

and address 

problems identified 

during compliance 

examinations of FDICsupervised institutions 

that receive an overall 

3, 4, or 5 rating for 

compliance with 

consumer protection 

and fair lending laws.

Percentage of followup examinations 

or on-site visits of 

3-, 4-, and 5-rated 

institutions conducted 

within required time 

frames.

For all institutions that are assigned a 

compliance rating of 3, 4, or 5, conduct 

follow-up examinations or on-site visits 

within 12 months to ensure that each 

institution is fulfilling the requirements 

of any corrective programs that have been 

implemented and that the actions taken are 

effectively addressing the underlying concerns 

identified during the examination.

Achieved.

See pg. 22.

10 Complete the 

transfer of personnel 

and supervisory 

responsibility 

for compliance 

examinations of FDIC 

supervised institutions 

with more than $10 

billion in assets and 

their affiliates from 

the FDIC to the new 

Consumer Financial 

Protection Bureau 

(CFPB) in accordance 

with statutory 

requirements.

Transfer from 

the FDIC to the 

CFPB of personnel 

and supervisory 

responsibility for 

FDIC-supervised 

institutions with 

more than $10 billion 

in assets and their 

affiliates.

Complete by July 21, 2011, the transfer of 

supervisory responsibility from the FDIC to 

the CFPB.

Identify the FDIC employees to be transferred 

to the CFPB and transfer them in accordance 

with established time frames.

Achieved.

See pg. 33.

Achieved.

See pg. 33.

11 Effectively investigate 

and respond to written 

consumer complaints 

and inquiries about 

FDIC-supervised 

financial institutions.

Timely responses to 

written consumer 

complaints and 

inquiries.

Respond to 95 percent of written consumer 

complaints and inquiries within time frames 

established by policy, with all complaints 

and inquiries receiving at least an initial 

acknowledgement within two weeks.

Achieved.

See pg. 33.

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities. 
performance

60

2011 Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-insured institutions are safe and sound. 

#

An

Performance Goal I

12 Establish, in 

consultation 

with the FDIC’s 

Advisory Committee 

on Economic 

Inclusion and other 

regulatory agencies, 

national objectives 

and methods for 

reducing the number 

of unbanked and 

underbanked 

individuals.

Completion of 

initiatives to facilitate 

progress in improving 

the engagement of 

low- and moderateincome individuals 

with mainstream 

financial institutions.

Launch the FDIC Model Safe Accounts 

Pilot, begin data collection on the accounts 

from banks, and start reporting on results of 

the pilot.

Continue to promote the results of the 

FDIC Small-Dollar Loan Pilot, and research 

opportunities for bringing small-dollar 

lending programs to scale, including 

exploring a test of employer-based lending 

using the federal workforce.

Engage in efforts to support safe 

mortgage lending in low- and moderateincome communities.

Achieved.

See pg. 28.

Achieved.

See pg. 28.

Achieved.

See pg. 28.

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.
2011

A N N U A L R E P O R T

61

performance

2011 Receivership Management Program Resul

Strategic Goal: Resolutions are orderly and receiverships are managed effectively.

#

An

Performance Goal I

1 Market failing 

institutions to all 

known qualified 

and interested 

potential bidders.

Scope of qualified 

and interested bidders 

solicited.

Contact all known qualified and 

interested bidders.

Achieved.

See pg. 35.

2 Value, manage, and 

market assets of failed 

institutions and their 

subsidiaries in a timely 

manner to maximize 

net return.

Percentage of the 

assets marketed for 

each failed institution.

For at least 95 percent of insured institution 

failures, market at least 90 percent of the 

book value of the institution’s marketable 

assets within 90 days of the failure date (for 

cash sales) or 120 days of the failure date (for 

structured sales).

Achieved.

See pg. 35.

3 Manage the 

receivership estate and 

its subsidiaries toward 

an orderly termination.

Timely termination of 

new receiverships.

Terminate at least 75 percent of new 

receiverships that are not subject to loss share 

agreements, structured sales, or other legal 

impediments within three years of the date 

of failure.

Achieved.

See pg. 52.

4 Complete reviews of 

all loss share and 

Limited Liability 

Corporation (LLC) 

agreements to ensure 

full compliance 

with the terms and 

conditions of 

the agreements.

Percentage of reviews 

of loss share and LLC 

agreements completed 

and action plans 

implemented.

Complete on-site field work for reviews of 100 

percent of the loss share and LLC agreements 

active as of December 31, 2010, to ensure full 

compliance with the terms and conditions of 

the agreements.

Review the final report and implement an 

action plan to address the report’s finding 

and recommendations for 75 percent of the 

loss share reviews and 50 percent of the LLC 

reviews, including all reviews of agreements 

totaling more than $1.0 billion (gross 

book value).

Achieved.

See pg. 52.

Achieved.

See pg. 52.
performance

62

2011 Receivership Management Program Resul

Strategic Goal: Resolutions are orderly and receiverships are managed effectively.

#

An

Performance Goal I

5 Conduct investigations 

into all potential 

professional 

liability claim 

areas for all failed 

insured depository 

institutions, and 

decide as promptly 

as possible to close 

or pursue each claim, 

considering the size 

and complexity of the 

institution.

Percentage of 

investigated claim 

areas for which a 

decision has been 

made to close or 

pursue the claim.

For 80 percent of all claim areas, make a 

decision to close or pursue professional 

liability claims within 18 months of the 

failure of an insured depository institution.

Achieved.

See pg. 52.
2011

A N N U A L R E P O R T

63

performance

Prior Years’ P

Refer to the respective full Annual Report of prior years for more information on performance results for those years. 

Minor wording changes may have been made to reflect current goals and targets. (Shaded areas indicate no such target 

existed for that respective year.)

Insurance Program Result

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goals and T

1. Respond promptly to all financial institution closings and related emerging issue

Depositors have access to insured funds within one business day if the failure occurs 

on a Friday.

Achieved. Achieved. Achieved.

Depositors have access to insured funds within two business days if the failure occurs 

on any other day of the week.

Achieved. Achieved. Achieved.

Complete rulemaking/review comments received in response to the Advance 

Notice of Proposed Rulemaking on Large-Bank Deposit Insurance Determination 

Modernization.

Achieved.

There are no depositor losses on insured deposits. Achieved. Achieved. Achieved.

No appropriated funds are required to pay insured depositors. Achieved. Achieved. Achieved.

2. Identify and address risks to the Deposit Insurance Fund (DIF

Assess the insurance risks in large (all for 2008-2009) insured depository institutions 

and adopt appropriate strategies.

Achieved. Achieved.

Identify and follow up on all material issues raised through off-site review 

and analysis.

Achieved. Achieved.

Identify and analyze existing and emerging areas of risk, including non-traditional 

and subprime mortgage lending, declines in housing market values, mortgagerelated derivatives/collateralized debt obligations (CDOs), hedge fund ownership 

of insured institutions, commercial real estate lending, international risk, and other 

financial innovations.

Achieved. Achieved.

Address potential risks from cross-border banking instability through 

coordinated review of critical issues and, where appropriate, negotiate agreements 

with key authorities.

Achieved.

3. Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, supervisors, the public,

and other stakeholders

Disseminate results of research and analyses in a timely manner through regular 

publications, ad hoc reports, and other means.

Achieved. Achieved. Achieved.

Industry outreach activities are undertaken to inform bankers and other stakeholders 

about current trends, concerns, and other available FDIC resources.

Achieved. Achieved. Achieved.
performance

64

Insurance Program Result

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goals and T

4. Effectively administer temporary financial stability program

Provide liquidity to the banking system by guaranteeing noninterest-bearing 

transaction deposit account and new senior unsecured debt issued by eligible 

institutions under the TLGP.

Achieved.

Implement an orderly phase-out of new guarantees under the program when the 

period for issuance of new debt expires.

Achieved.

Substantially complete by September 30, 2009, the review of and recommendations to 

the Department of Treasury on CPP applications from FDIC-supervised institutions.

Achieved.

Expeditiously implement procedures for the LLP, including the guarantee to be 

provided for debt issued by Public Private Investment Funds, and provide information 

to financial institutions and private investors potentially interested in participating.

Achieved.

Expeditiously implement procedures to review the use of CPP funds, TLGP 

guarantees, and other resources made available under financial stability programs 

during examinations of participating FDIC-supervised institutions.

Achieved.

5. Set assessment rates to restore the insurance fund reserve ratio to the statutory minimum of at least 1.15% of estimated insure

deposits by year-end 2016, in accordance with the Amended Restoration Plan

Provide updated fund projections to the FDIC Board of Directors by June 30, 2010, 

and December 31, 2010.

Achieved.

Recommend deposit insurance assessment rates for the DIF to the FDIC Board 

as necessary.

Achieved.

Provide updates to the FDIC Board by June 30, 2010, and December 31, 2010. Achieved.

6. Maintain and improve the deposit insurance syste

Adopt and implement revisions to the pricing regulations that provide for greater risk 

differentiation among insured depository institutions reflecting both the probability 

of default and loss in the event of default.

Achieved.

Revise the guidelines and enhance the additional risk measures used to adjust 

assessment rates for large institutions.

Achieved.

Review the effectiveness of the new pricing regulations that were adopted to 

implement the reform legislation.

Achieved.

Enhance the additional risk measures used to adjust assessment rates for 

large institutions.

Achieved.

Develop a final rule on a permanent dividend system. Achieved.
2011

A N N U A L R E P O R T

65

performance

Insurance Program Result

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goals and T

Ensure/enhance the effectiveness of the reserving methodology by applying 

sophisticated analytical techniques to review variances between projected losses and 

actual losses, and by adjusting the methodology accordingly.

Achieved. Achieved.

Set assessment rates to maintain the insurance fund reserve ratio between 1.15 and 

1.50 percent of estimated insured deposits. Restore to 1.15 percent by year-end 2015.

Achieved. Not 

Achieved.

Monitor progress in achieving the restoration plan. Achieved.

7. Provide educational information to insured depository institutions and their customers to help them understand the rules for

determining the amount of insurance coverage on deposit accounts

Conduct at least three sets of Deposit Insurance Seminar/teleconferences (per quarter 

in 2009) for bankers.

Achieved. Achieved.

Conduct outreach events and activities to support a deposit insurance education 

program that features the FDIC 75th anniversary theme.

Achieved.

Assess the feasibility of (and if feasible, define the requirements for) a consolidated 

Electronic Deposit Insurance Estimator (EDIE) application for bankers and 

consumers (to be developed in 2009).

Achieved.

Respond to 90 percent of inquiries from consumers and bankers about FDIC deposit 

insurance coverage within time frames established by policy.

Achieved.

Respond to 90 percent of written inquiries from consumers and bankers about FDIC 

deposit insurance coverage within two weeks.

Achieved.

Enter into deposit insurance education partnerships with consumer organizations to 

educate consumers.

Achieved.

Expand avenues for publicizing deposits insurance rules and resources to consumers 

through a variety of media.

Achieved.

8. Expand and strengthen the FDIC’s participation and leadership role in providing technical guidance, training, consulting

services, and information to international governmental banking and deposit insurance organizations; and in supporting robust 

international deposit insurance systems

Undertake outreach activities to inform and train foreign bank regulators and 

deposit insurers. 

Achieved. Achieved. Achieved.

Foster strong relationships with international banking regulators and associations 

that promote sound banking supervision and regulation, failure resolutions and 

deposit insurance practices. 

Achieved. Achieved. Achieved.

Develop methodology for assessing compliance with implementation of the Core 

Principles for Effective Deposit Insurance Systems.

Achieved.
performance

66

Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and T

1. Conduct on-site risk management examinations to assess the overall financial condition, management practices and policies, and

compliance with applicable laws and regulations of FDIC-supervised depository institutions

One hundred percent of required risk management examinations are conducted 

on schedule.

Achieved. Achieved. Achieved.

2. Take prompt and effective supervisory action to address unresolved problems identified during the FDIC examination of FDICsupervised institutions that receive a composite Uniform Financial Institutions Rating of “3”, “4”, or “5” (problem institution

Monitor FDIC-supervised insured depository institutions’ compliance with formal and informal enforcement actions

One hundred percent of required on-site visits are conducted within six months of 

completion of the prior examination to confirm that the institution is fulfilling the 

requirements of the corrective program.

Achieved.

One hundred percent of follow-up examinations are conducted within 12 months 

of completion of the prior examination to confirm that identified problems have 

been corrected.

Achieved. Achieved. Achieved.

3. Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering and oth

financial crimes

One hundred percent of required Bank Secrecy Act (BSA) examinations are conducted 

on schedule.

Achieved Achieved. Achieved.

4. More closely align regulatory capital with risk in large or multinational banks while maintaining capital at prudential level

Develop options for refining Basel II that are responsive to lessons learned from the 

2007-2008 market turmoil.

Achieved.

Conduct analyses of early results of the performance of new capital rules in light of 

recent financial turmoil as information becomes available.

Achieved. Achieved.

Working domestically and internationally, develop improvements to regulatory capital 

requirements based on the experience of the recent financial market turmoil.

Achieved.

5. More closely align regulatory capital with risk and ensure that capital is maintained at prudential level

Complete by December 31, 2010, the rulemaking for implementing the Standardized 

Approach for an appropriate subset of U.S. banks.

Deferred.

Complete by December 31, 2010, the rulemaking for amending the floors for banks 

that calculate their risk-based capital requirements under the Advanced Approaches 

Capital rule to ensure capital requirements meet safety-and-soundness objectives.

Not 

Achieved.

Complete by December 31, 2010, the rulemaking for implementing revisions to the 

Market Risk Amendment of 1996.

Deferred.
2011

A N N U A L R E P O R T

67

performance

Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and T

Complete by December 31, 2010, the rulemaking for implementing revisions to 

regulatory capital charges for resecuritizations and asset-backed commercial paper 

liquidity facilities.

Deferred.

6. More closely align regulatory capital with risk in banks not subject to Basel II capital rules while maintaining capital at

prudential levels

Finalize a regulatory capital framework based on the Basel II “Standardized 

Approach” as an option for U.S. banks not required to use the new 

advanced approaches.

Achieved.

7. Ensure that FDIC-supervised institutions that plan to operate under the new Basel II Capital Accord are well positioned to respond

to the new capital requirements

Performed on-site examinations or off-site analyses of all FDIC-supervised banks that 

have indicated a possible intention to operate under Basel II to ensure that they are 

effectively working toward meeting required qualification standards.

Not 

Applicable.

8. Reduce regulatory burden on the banking industry while maintaining appropriate consumer protection and safety and

soundness safeguards

Complete and evaluate options for refining the current risk-focused approach used in 

the conduct of BSA/AML examinations to reduce the burden they impose on FDICsupervised institutions.

Achieved.

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.

Annual Performance Goals and T

1. Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDIC-supervised

depository institutions and in accordance with the FDIC’s examination frequency policy

One hundred percent of required examinations are conducted on schedule. Achieved. Achieved. Achieved.

2. Take prompt and effective supervisory action to monitor and address problems identified during compliance examinations of

FDIC-supervised institutions that received an overall “3”, “4”, or “5” rating for compliance with consumer protection and fair 

lending laws

One hundred percent of follow-up examinations or visitations are conducted within 

12 months from the date of a formal enforcement action to confirm compliance with 

the prescribed enforcement action.

Achieved. Not 

Achieved.

Achieved.
performance

68

Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and T

3. Determine the need for changes in current FDIC practices for following up on significant violations of consumer compliance laws

and regulations identified during examinations of banks for compliance with consumer protection and fair lending laws

Complete a review of the effectiveness of the 2007 instructions issued on the 

handling of repeat instances of significant violations identified during compliance 

examinations.

Achieved.

4. Scrutinize evolving consumer products, analyze their current or potential impact on consumers and identify potentially harmful

or illegal practices. Promptly institute a supervisory response program across FDIC-supervised institutions when such practices

are identified

Proactively identify and respond to harmful or illegal practices associated with 

evolving consumer products.

Achieved. Achieved.

Develop and implement new supervisory response programs across all FDICsupervised institutions to address potential risks posed by new consumer products.Achieved.

5. Provide effective outreach related to the CRA, fair lending, and community developmen

Conduct 50 in 2009 (125 in prior years) technical assistance (examination support) 

efforts or banker/community outreach activities related to CRA, fair lending, and 

community development.

Achieved. Achieved.

Evaluate the Money Smart initiative and curricula for necessary updates and 

enhancements, such as games for young people, information on elder financial abuse, 

and additional language versions, if needed.

Achieved.

Initiate the longitudinal survey project to measure the effectiveness of the Money Smart

for Young Adults curriculum.

Achieved.

Release a “Young Adult” version of the Money Smart curriculum. Achieved.

Distribute at least 10,000 copies of the “Young Adult” version of Money Smart. Achieved.

Analysis of survey results is disseminated within six months of completion of the 

survey through regular publications, ad hoc reports, and other means.

Achieved.

Provide technical assistance, support, and consumer outreach activities in all six 

FDIC regions to at least eight local NeighborWorks® America affiliates or local 

coalitions that are providing foreclosure mitigation counseling in high need areas. 

Achieved. Achieved.
2011

A N N U A L R E P O R T

69

performance

Supervision and Consumer Protection Program Resul

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and T

6. Continue to expand the FDIC’s national leadership role in development and implementation of programs and strategies to

encourage and promote broader economic inclusion within the nation’s banking system

Expand the number of AEI coalitions by two. Achieved.

Analyze quarterly data submitted by participating institutions to identify early trends 

and potential best practices.

Achieved. Achieved.

Open 27,000 new bank accounts. Achieved.

Initiate new small-dollar loan products in 32 financial institutions. Achieved.

Initiate remittance products in 32 financial institutions. Achieved.

Reach 18,000 consumers through financial education initiatives. Achieved.

7. Educate consumers about their rights and responsibilities under consumer protection laws and regulation

Expand the use of media, such as the Internet, videos, and MP3 downloads, 

to disseminate information to the public on their rights and responsibilities 

as consumers.

Achieved.

8. Effectively investigate and respond to written consumer complaints and inquiries about FDIC-supervised financial institution

Responses are provided to 95 percent (90 percent for 2008) of written complaints and 

inquiries within time frames established by policy, with all complaints and inquiries 

receiving at least an initial acknowledgment within two weeks.

Achieved. Achieved. Achieved.

9. Establish, in consultation with the FDIC’s Advisory Committee on Economic Inclusion and other regulatory agencies, national

objectives and methods for reducing the number of unbanked and underbanked individuals

Facilitate completion of final recommendation on the initiatives identified in the 

Advisory Committee’s strategic plan.

Achieved.

Implement, or establish plans to implement, Advisory Committee recommendations 

approved by the FDIC for further action, including new research, demonstration and 

pilot projects, and new and revised supervisory and public policies.

Achieved.
performance

70

Receivership Management Program Resul

Strategic Goal: Recovery to creditors of receiverships is achieved.

Annual Performance Goals and T

 1. Market failing institutions to all known qualified and interested potential bidder

Contact all known qualified and interested bidders. Achieved. Achieved. Achieved.

2. Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net retur

Ninety percent of the book value of a failed institution’s marketable assets is 

marketed within 90 days of failure.

Achieved. Achieved.

For at least 95 percent of insured institution failures, market at least 90 percent of 

the book value of the institution’s marketable assets within 90 days of the failure 

date (for cash sales) or 120 days of the failure date (for structured sales).

Achieved.

Implement enhanced reporting capabilities from the Automated 

Procurement System.

Achieved.

Ensure that all newly designated oversight managers and technical monitors receive 

training in advance of performing contract administration responsibilities.

Achieved.

Optimize the effectiveness of oversight managers and technical monitors by 

restructuring work assignments, providing enhanced technical support, and 

improving supervision.

Achieved.

Identify and implement program improvements to ensure efficient and 

effective management of the contract resources used to perform receivership 

management functions.

Achieved.

3. Manage the receivership estate and its subsidiaries toward an orderly terminatio

Terminate all receiverships within 90 days of the resolution of all impediments. Achieved.

Terminate within three years of the date of failure, at least 75 percent of new 

receiverships that are not subject to loss-share agreements, structured sales, or other 

legal impediments.

Achieved. Achieved.

4. Conduct investigations into all potential professional liability claim areas for all failed insured depository institutions and decide

as promptly as possible to close or pursue each claim, considering the size and complexity of the institution

For 80 percent of all claim areas, a decision is made to close or pursue claims within 

18 months of the failure date.

Achieved. Achieved. Achieved.