VI. Appendixes

Appendix A –Key Statistics

106

For the years ended December 31

2005 2004 2003

Bank Insurance Fund

Financial Results 

Revenue $ 1,783 $ 1,675 $ 1,626

Operating Expenses 846 821 805

Insurance and other expenses (135) (263) (921)

Net Income 1,072 1,117 1,742

Comprehensive Income 680 1,004 1,732

Insurance Fund Balance $ 35,467 $ 34,787 $ 33,782

Fund as a Percentage of Insured Deposits 1.25% 1.30% 1.32%

Selected Statistics

Total BIF-Member Institutions●7,748 7,839 7,995

Problem Institutions 58 69 102

Total Assets of Problem Institutions $ 18,714 $ 27,161 $ 28,812

Institution Failures 0 3 3

Total Assets of Current Year Failed Institutions $ 0 $ 151 $ 1,097

Number of Active Failed Institution Receiverships 24 31 31

Savings Association Insurance Fund

Financial Results 

Revenue $ 637 $ 564 $ 547

Operating Expenses 120 120 130

Insurance and other expenses (22) (72) (83)

Net Income 539 516 500

Comprehensive Income 409 480 493

Insurance Fund Balance $ 13,130 $ 12,720 $ 12,240

Fund as a Percentage of Insured Deposits 1.30% 1.34% 1.37%

Selected Statistics

Total SAIF-Member Institutions ■1,108 1,136 1,186

Problem Institutions 10 11 14

Total Assets of Problem Institutions $ 2,151 $ 1,089 $ 1,105

Institution Failures 0 1 0

Total Assets of Current Year Failed Institutions $ 0 $ 15 $ 0

Number of Active Failed Institution Receiverships 3 3 2

▼ As of September 30, 2005.

● Commercial banks and savings institutions. Does not include U.S. branches of foreign banks.

■ Savings institutions and commercial banks.

Selected Statistics

Dollars in millions

▼

▼

▼

▼

▼

▼

▼

▼
Number of Insured Banks Deposits of Insured Banks

1

Without With Without With

Disbursements Disbursements Disbursements Disbursements

Year Total by FDIC by FDIC Total by FDIC by FDIC Assets

Number and Deposits of BIF-Insured Banks Closed Because of Financial Difficulties, 1934 through 20051

Dollars in Thousands

Total 2,116 19 2,097 $ 217,856,719 $ 4,298,814 $ 213,557,905 $ 408,937,918

2005 0 – 0 0 – 0 0

2004 3 – 3 132,880 – 132,880 150,519,500

2003 3 – 3 903,504 – 903,504 1,096,724

2002 10 – 10 2,124,501 – 2,124,501 2,507,565

2001 3 – 3 49,926 – 49,926 54,470

2000 6 – 6 311,950 – 311,950 378,088

1999 7 – 7 1,268,151 – 1,268,151 1,423,819

1998 3 – 3 335,076 – 335,076 370,400

1997 1 – 1 26,800 – 26,800 25,921

1996 5 – 5 168,228 – 168,228 182,502

1995 6 – 6 632,700 – 632,700 753,024

1994 13 1 12 1,236,488 – 1,236,488 1,392,140

1993 41 – 41 3,132,177 – 3,132,177 3,539,373

1992 120 10 110 41,150,898 4,257,667 36,893,231 44,197,009

1991 124 – 124 53,751,763 – 53,751,763 63,119,870

1990 168 – 168 14,473,300 – 14,473,300 15,660,800

1989 206 – 206 24,090,551 – 24,090,551 29,168,596

1988 200 – 200 24,931,302 – 24,931,302 35,697,789

1987 184 – 184 6,281,500 – 6,281,500 6,850,700

1986 138 – 138 6,471,100 – 6,471,100 6,991,600

1985 120 – 120 8,059,441 – 8,059,441 8,741,268

1984 79 – 79 2,883,162 – 2,883,162 3,276,411

1983 48 – 48 5,441,608 – 5,441,608 7,026,923

1982 42 – 42 9,908,379 – 9,908,379 11,632,415

1981 10 – 10 3,826,022 – 3,826,022 4,859,060

1980 10 – 10 216,300 – 216,300 236,164

1979 10 – 10 110,696 – 110,696 132,988

1978 7 – 7 854,154 – 854,154 994,035

1977 6 – 6 205,208 – 205,208 232,612

1976 16 – 16 864,859 – 864,859 1,039,293

1975 13 – 13 339,574 – 339,574 419, 950

1974 4 – 4 1,575,832 – 1,575,832 3,822,596

1973 6 – 6 971,296 – 971,296 1,309,675

1972 1 – 1 20,480 – 20,480 22,054

1971 6 – 6 132,058 – 132,058 196,520

1970 7 – 7 54,806 – 54,806 62,147

1969 9 – 9 40,134 – 40,134 43,572

1968 3 – 3 22,524 – 22,524 25,154

1967 4 – 4 10,878 – 10,878 11,993

1966 7 – 7 103,523 – 103,523 120,647

1965 5 – 5 43,861 – 43,861 58,750

1964 7 – 7 23,438 – 23,438 25,849

1963 2 – 2 23,444 – 23,444 26,179

1962 1 1 0 3,011 3,011 0 N/A

1961 5 – 5 8,936 – 8,936 9,820

1960 1 – 1 6,930 – 6,930 7,506

1959 3 – 3 2,593 – 2,593 2,858

1958 4 – 4 8,240 – 8,240 8,905

1957 2 1 1 11,247 10,084 1,163 1,253

1956 2 – 2 11,330 – 11,330 12,914

1955 5 – 5 11,953 – 11,953 11,985

1954 2 – 2 998 – 998 1,138

1953 4 2 2 44,711 26,449 18,262 18,811

1952 3 – 3 3,170 – 3,170 2,388

1951 2 – 2 3,408 – 3,408 3,050

1950 4 – 4 5,513 – 5,513 4,005

1949 5 1 4 6,665 1,190 5,475 4,886

1948 3 – 3 10,674 – 10,674 10,360

1947 5 – 5 7,040 – 7,040 6,798

1946 1 – 1 347 – 347 351

1945 1 – 1 5,695 – 5,695 6,392

1944 2 – 2 1,915 – 1,915 2,098

1943 5 – 5 12,525 – 12,525 14,058

1942 20 – 20 19,185 – 19,185 22,254

1941 15 – 15 29,717 – 29,717 34,804

1940 43 – 43 142,430 – 142,430 161,898

1939 60 – 60 157,772 – 157,772 181,514

1938 74 – 74 59,684 – 59,684 69,513

1937 77 2 75 33,677 328 33,349 40,370

1936 69 – 69 27,508 – 27,508 31,941

1935 26 1 25 13,405 85 13,320 17,242

1934 9 – 9 1,968 – 1,968 2,661

Does not include institutions that received FDIC assistance and were not closed. Also does not include institutions insured by the Savings Association Insurance Fund (SAIF), which was 

established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

107
Deposit Payoff Cases2

Number Estimated Number Estimated

of Additional Estimated of Additional Estimated

Year Banks Disbursements Recoveries Recoveries Losses Banks Disbursements Recoveries Recoveries Losses

Recoveries and Losses by the Bank Insurance Fund on Disbursements for the Protection of Depositors, 

1934 through 2005

Dollars in Thousands

continued on next page

Total 2,227 112,571,316 74,095,625 323,892 34,976,152 608 15,929,270 11,180,391 114,936 4,633,943

2005 000000000 0

2004 3 132,781 127,791 0 4,990 0000 0

2003 3 883,772 681,532 124,507 77,733 0000 0

2002 10 2,030,455 1,470,428 116,506 443,521 5 1,585,058 1,169,657 114,936 300,465

2001 3 48,631 42,839 0 5,792 0000 0

2000 6 268,730 237,913 0 30,817 0000 0

1999 7 1,244,448 560,175 51,149 633,124 0000 0

1998 3 286,678 43,487 17,282 225,909 0000 0

1997 1 25,546 20,520 0 5,026 0000 0

1996 5 169,387 130,723 0 38,664 0000 0

1995 6 609,043 524,571 0 84,472 0000 0

1994 13 1,224,769 1,045,718 0 179,051 0000 0

1993 41 3,146,456 2,500,256 1,603 644,597 5 261,361 162,749 0 98,612

1992 122 14,175,372 10,506,348 989 492,388 25 1,893,324 1,401,186 0 492,138

1991 127 21,196,493 15,187,471 11,856 5,997,166 21 1,251,676 784,002 0 467,674

1990 169 10,817,419 8,034,946 0 2,782,473 20 2,183,400 1,641,564 0 541,836

1989 207 11,445,829 5,248,247 0 6,197,582 32 2,116,556 1,262,140 0 854,416

1988 280 12,163,006 5,244,866 0 6,918,140 36 1,252,160 822,612 0 429,548

1987 203 5,037,871 3,015,215 0 2,022,656 51 2,103,792 1,401,000 0 702,792

1986 145 4,790,969 3,015,252 0 1,775,717 40 1,155,981 739,659 0 416,322

1985 120 2,920,687 1,913,452 0 1,007,235 29 523,789 411,175 0 112,614

1984 80 7,696,215 6,056,061 0 1,640,154 16 791,838 699,483 0 92,355

1983 48 3,807,082 2,400,044 0 1,407,038 9 148,423 122,484 0 25,939

1982 42 2,275,150 1,106,579 0 1,168,571 7 277,240 206,247 0 70,993

1981 10 888,999 107,221 0 781,778 2 35,736 34,598 0 1,138

1980 11 152,355 121,675 0 30,680 3 13,732 11,427 0 2,305

1979 10 90,489 74,372 0 16,117 3 9,936 9,003 0 933

1978 7 548,568 512,927 0 35,641 1 817 613 0 204

1977 6 26,650 20,654 0 5,996 0000 0

1976 17 599,397 561,532 0 37,865 3 11,416 9,660 0 1,756

1975 13 332,046 292,431 0 39,615 3 25,918 25,849 0 69

1974 5 2,403,277 2,259,633 0 143,644 0000 0

1973 6 435,238 368,852 0 66,386 3 16,771 16,771 0 0

1972 2 16,189 14,501 0 1,688 1 16,189 14,501 0 1,688

1971 7 171,646 171,430 0 216 5 53,767 53,574 0 193

1970 7 51,566 51,294 0 272 4 29,265 28,993 0 272

1969 9 42,072 41,910 0 162 4 7,596 7,513 0 83

1968 3 6,476 6,464 0 12 0000 0

1967 4 8,097 7,087 0 1,010 4 8,097 7,087 0 1,010

1966 7 10,020 9,541 0 479 1 735 735 0 0

1965 5 11,479 10,816 0 663 3 10,908 10,391 0 517

1964 7 13,712 12,171 0 1,541 7 13,712 12,171 0 1,541

1963 2 19,172 18,886 0 286 2 19,172 18,886 0 286

1962 000000000 0

1961 5 6,201 4,700 0 1,501 5 6,201 4,700 0 1,501

1960 1 4,765 4,765 0 0 1 4,765 4,765 0 0

1959 3 1,835 1,738 0 97 3 1,835 1,738 0 97

1958 4 3,051 3,023 0 28 3 2,796 2,768 0 28

1957 1 1,031 1,031 0 0 1 1,031 1,031 0 0

1956 2 3,499 3,286 0 213 1 2,795 2,582 0 213

1955 5 7,315 7,085 0 230 4 4,438 4,208 0 230

1954 2 1,029 771 0 258 0000 0

1953 2 5,359 5,359 000000 0

1952 3 1,525 733 0 792 0000 0

1951 2 1,986 1,986 000000 0

1950 4 4,404 3,019 0 1,385 0000 0

1949 4 2,685 2,316 0 369 0000 0

1948 3 3,150 2,509 0 641 0000 0

1947 5 2,038 1,979 0 59 0000 0

1946 1 274 274 000000 0

1945 1 1,845 1,845 000000 0

1944 2 1,532 1,492 0 40 1 404 364 0 40

1943 5 7,230 7,107 0 123 4 5,500 5,377 0 123

1942 20 11,684 10,996 0 688 6 1,612 1,320 0 292

1941 15 25,061 24,470 0 591 8 12,278 12,065 0 213

1940 43 87,899 84,103 0 3,796 19 4,895 4,313 0 582

1939 60 81,828 74,676 0 7,152 32 26,196 20,399 0 5,797

1938 74 34,394 31,969 0 2,425 50 9,092 7,908 0 1,184

1937 75 20,204 16,532 0 3,672 50 12,365 9,718 0 2,647

1936 69 15,206 12,873 0 2,333 42 7,735 6,397 0 1,338

1935 25 9,108 6,423 0 2,685 24 6,026 4,274 0 1,752

1934 9 941 734 0 207 9 941 734 0 207

All Cases1

108
1

2

Totals do not include dollar amounts for the five open bank assistance transactions between 1971 and 1980. Excludes eight transactions prior to 1962 that required no disbursements. 

Also, disbursements, recoveries, and estimated additional recoveries do not include working capital advances to and repayments by receiverships.

Includes insured deposit transfer cases.

Note: Beginning with the 1997 Annual Report the number of banks in the Assistance Transactions column for 1988 was changed from 21 to 80 and the number of banks in the All Cases 

column was changed from 221 to 280 to reflect that one assistance transaction encompassed 60 institutions. Also, certain 1982, 1983, 1989 and 1992 resolutions previously reported 

in either the Deposit Payoff or Deposit Assumption categories were reclassified.

Assistance Transactions1 Deposit Assumption Cases

Number Estimated Number Estimated

of Additional Estimated of Additional Estimated

Year Banks Disbursements Recoveries Recoveries Losses Banks Disbursements Recoveries Recoveries Losses

Recoveries and Losses by the Bank Insurance Fund on Disbursements for the Protection of Depositors, 

1934 through 2005 (continued)

Dollars in Thousands

Total 1,478 85,011,690 56,715,359 208,956 28,087,375 141 11,630,356 6,199,875 0 5,430,481

2005 000000000 0

2004 3 132,781 127,791 0 4,990 0000 0

2003 3 883,772 681,532 124,507 77,733 0000 0

2002 5 445,397 300,771 1,570 143,056 0000 0

2001 3 48,631 42,839 0 5,792 0000 0

2000 6 268,730 237,913 0 30,817 0000 0

1999 7 1,244,448 560,175 51,149 633,124 0000 0

1998 3 286,678 43,487 17,282 225,909 0000 0

1997 1 25,546 20,520 0 5,026 0000 0

1996 5 169,387 130,723 0 38,664 0000 0

1995 6 609,043 524,571 0 84,472 0000 0

1994 13 1,224,769 1,045,718 0 179,051 0000 0

1993 36 2,885,095 2,337,507 1,603 545,985 0000 0

1992 95 12,280,562 9,103,926 989 3,175,647 2 1,486 1,236 0 250

1991 103 19,938,700 14,400,376 11,856 5,526,468 3 6,117 3,093 0 3,024

1990 148 8,629,084 6,390,785 0 2,238,299 1 4,935 2,597 0 2,338

1989 174 9,326,725 3,985,855 0 5,340,870 1 2,548 252 0 2,296

1988 164 9,180,495 4,232,545 0 4,947,950 80 1,730,351 189,709 0 1,540,642

1987 133 2,773,202 1,613,502 0 1,159,700 19 160,877 713 0 160,164

1986 98 3,476,140 2,209,924 0 1,266,216 7 158,848 65,669 0 93,179

1985 87 1,631,166 1,095,601 0 535,565 4 765,732 406,676 0 359,056

1984 62 1,373,198 941,674 0 431,524 2 5,531,179 4,414,904 0 1,116,275

1983 35 2,893,969 1,850,553 0 1,043,416 4 764,690 427,007 0 337,683

1982 25 268,372 213,578 0 54,794 10 1,729,538 686,754 0 1,042,784

1981 5 79,208 71,358 0 7,850 3 774,055 1,265 0 772,790

1980 7 138,623 110,248 0 28,375 1000 0

1979 7 80,553 65,369 0 15,184 0000 0

1978 6 547,751 512,314 0 35,437 0000 0

1977 6 26,650 20,654 0 5,996 0000 0

1976 13 587,981 551,872 0 36,109 1000 0

1975 10 306,128 266,582 0 39,546 0000 0

1974 4 2,403,277 2,259,633 0 143,644 1000 0

1973 3 418,467 352,081 0 66,386 0000 0

1972 000001000 0

1971 1 117,879 117,856 0 23 1000 0

1970 3 22,301 22,301 000000 0

1969 5 34,476 34,397 0 79 0000 0

1968 3 6,476 6,464 0 12 0000 0

1967 000000000 0

1966 6 9,285 8,806 0 479 0000 0

1965 2 571 425 0 146 0000 0

1964 000000000 0

1963 000000000 0

1962 000000000 0

1961 000000000 0

1960 000000000 0

1959 000000000 0

1958 1 255 255 000000 0

1957 000000000 0

1956 1 704 704 000000 0

1955 1 2,877 2,877 000000 0

1954 2 1,029 771 0 258 0000 0

1953 2 5,359 5,359 000000 0

1952 3 1,525 733 0 792 0000 0

1951 2 1,986 1,986 000000 0

1950 4 4,404 3,019 0 1,385 0000 0

1949 4 2,685 2,316 0 369 0000 0

1948 3 3,150 2,509 0 641 0000 0

1947 5 2,038 1,979 0 59 0000 0

1946 1 274 274 000000 0

1945 1 1,845 1,845 000000 0

1944 1 1,128 1,128 000000 0

1943 1 1,730 1,730 000000 0

1942 14 10,072 9,676 0 396 0000 0

1941 7 12,783 12,405 0 378 0000 0

1940 24 83,004 79,790 0 3,214 0000 0

1939 28 55,632 54,277 0 1,355 0000 0

1938 24 25,302 24,061 0 1,241 0000 0

1937 25 7,839 6,814 0 1,025 0000 0

1936 27 7,471 6,476 0 995 0000 0

1935 1 3,082 2,149 0 933 0000 0

1934 000000000 0

109
Income Expenses and Losses

Investment Effective Provision Administrative Interest and

Assessment Assessment and Other Assessment for and Operating Other Insur. Net Income/

Year Total Income Credits Sources Rate1 Total Losses Expenses2 Expenses (Loss)

Income and Expenses, Bank Insurance Fund, from Beginning of Operations, 

September 11, 1933, through December 31, 2005

Dollars in Millions

continued on next page

Total $ 90,588.0 $ 53,572.7 $ 6,709.1 $ 43,724.4 $ 55,419.0 $ 35,772.9 $ 12,633.6 $ 7,018.5 $ 35,169.0

2005 1,783.5 52.6 0.0 1,730.9 0.0022% 711.5 (138.2) 846.2 3.5 1,072.0

2004 1,675.4 95.3 0.0 1,580.1 0.0022% 558.6 (281.4) 821.3 18.7 1,116.8

2003 1,626.0 80.2 0.0 1,545.8 0.0020% (115.7) (928.5) 805.5 7.3 1,741.7

2002 1,795.9 84.0 0.0 1,711.9 0.0022% 750.6 (87.0) 821.1 16.5 1,045.3

2001 1,996.7 47.8 0.0 1,948.9 0.0014% 2,559.4 1,756.3 785.9 17.2 (562.7)

2000 1,905.9 45.1 0.0 1,860.8 0.0014% 645.2 (153.0) 772.9 25.3 1,260.7

1999 1,815.6 33.3 0.0 1,782.3 0.0011% 1,922.0 1,168.7 730.4 22.9 (106.4)

1998 2,000.3 21.7 0.0 1,978.6 0.0008% 691.5 (37.7) 697.6 31.6 1,308.8

1997 1,615.6 24.7 0.0 1,590.9 0.0008% 177.3 (503.7) 605.2 75.8 1,438.3

1996 1,655.3 72.7 0.0 1,582.6 0.0024% 254.6 (325.2) 505.3 74.5 1,400.7

1995 4,089.1 2,906.9 0.0 1,182.2 0.1240% 483.2 (33.2) 470.6 45.8 3,605.9

1994 6,467.0 5,590.6 0.0 876.4 0.2360% (2,259.1) (2,873.4) 423,2 191.1 8,726.1

1993 6,430.8 5,784.3 0.0 646.5 0.2440% (6,791.4) (7,677.4) 388.5 497.5 13,222.2

1992 6,301.5 5,587.8 0.0 713.7 0.2300% (625.8) (2,259.7) 570.8 1,063.1 6,927.3

1991 5,790.0 5,160.5 0.0 629.5 0.2125% 16,862.3 15,476.2 284.1 1,102.0 (11,072.3)

1990 3,838.3 2,855.3 0.0 983.0 0.1200% 13,003.3 12,133.1 219.6 650.6 (9,165.0)

1989 3,494.6 1,885.0 0.0 1609.6 0.0833% 4,346.2 3,811.3 213.9 321.0 (851.6)

1988 3,347.7 1,773.0 0.0 1,574.7 0.0833% 7,588.4 6,298.3 223.9 1,066.2 (4,240.7)

1987 3,319.4 1,696.0 0.0 1,623.4 0.0833% 3,270.9 2,996.9 204.9 69.1 48.5

1986 3,260.1 1,516.9 0.0 1,743.2 0.0833% 2,963.7 2,827.7 180.3 (44.3) 296.4

1985 3,385.4 1,433.4 0.0 1,952.0 0.0833% 1,957.9 1,569.0 179.2 209.7 1,427.5

1984 3,099.5 1,321.5 0.0 1,778.0 0.0800% 1,999.2 1,633.4 151.2 214.6 1,100.3

1983 2,628.1 1,214.9 164.0 1,577.2 0.0714% 969.9 675.1 135.7 159.1 1,658.2

1982 2,524.6 1,108.9 96.2 1,511.9 0.0769% 999.8 126.4 129.9 743.5 1,524.8

1981 2,074.7 1,039.0 117.1 1,152.8 0.0714% 848.1 320.4 127.2 400.5 1,226.6

1980 1,310.4 951.9 521.1 879.6 0.0370% 83.6 (38.1) 118.2 3.5 1,226.8

1979 1,090.4 881.0 524.6 734.0 0.0333% 93.7 (17.2) 106.8 4.1 996.7

1978 952.1 810.1 443.1 585.1 0.0385% 148.9 36.5 103.3 9.1 803.2

1977 837.8 731.3 411.9 518.4 0.0370% 113.6 20.8 89.3 3.5 724.2

1976 764.9 676.1 379.6 468.4 0.0370% 212.3 28.0 180.4 3.9 552.6

1975 689.3 641.3 362.4 410.4 0.0357% 97.5 27.6 67.7 2.2 591.8

1974 668.1 587.4 285.4 366.1 0.0435% 159.2 97.9 59.2 2.1 508.9

1973 561.0 529.4 283.4 315.0 0.0385% 108.2 52.5 54.4 1.3 452.8

1972 467.0 468.8 280.3 278.5 0.0333% 59.7 10.1 49.6 6.0 407.3

1971 415.3 417.2 241.4 239.5 0.0345% 60.3 13.4 46.9 0.0 355.0

1970 382.7 369.3 210.0 223.4 0.0357% 46.0 3.8 42.2 0.0 336.7

1969 335.8 364.2 220.2 191.8 0.0333% 34.5 1.0 33.5 0.0 301.3

1968 295.0 334.5 202.1 162.6 0.0333% 29.1 0.1 29.0 0.0 265.9

1967 263.0 303.1 182.4 142.3 0.0333% 27.3 2.9 24.4 0.0 235.7

1966 241.0 284.3 172.6 129.3 0.0323% 19.9 0.1 19.8 0.0 221.1

1965 214.6 260.5 158.3 112.4 0.0323% 22.9 5.2 17.7 0.0 191.7

1964 197.1 238.2 145.2 104.1 0.0323% 18.4 2.9 15.5 0.0 178.7

1963 181.9 220.6 136.4 97.7 0.0313% 15.1 0.7 14.4 0.0 166.8

1962 161.1 203.4 126.9 84.6 0.0313% 13.8 0.1 13.7 0.0 147.3

4

3

5

110
Income Expenses and Losses

Income and Expenses, Bank Insurance Fund, from Beginning of Operations, 

September 11, 1933, through December 31, 2005 (continued)

Dollars in Millions

The effective rates from 1950 through 1984 vary from the statutory rate of 0.0833 percent due to assessment credits provided in those years. The statutory rate increased to 0.12 

percent in 1990 and to a minimum of 0.15 percent in 1991. The effective rates in 1991 and 1992 vary because the FDIC exercised new authority to increase assessments above the 

statutory rate when needed. Beginning in 1993, the effective rate is based on a risk-related premium system under which institutions pay assessments in the range of 0.23 percent 

to 0.31 percent. In May 1995, the BIF reached the mandatory recapitalization level of 1.25%. As a result, the assessment rate was reduced to 4.4 cents per $100 of insured deposits 

and assessment premiums totaling $1.5 billion were refunded in September 1995.

These expenses, which are presented as operating expenses in the Statements of Income and Fund Balance, pertain to the FDIC in its corporate capacity only and do not include costs 

that are charged to the failed bank receiverships that are managed by the FDIC. The receivership expenses are presented as part of the "Receivables from Bank Resolutions, net" line 

on the Balance Sheets. The narrative and graph presented in the "Corporate Planning and Budget" section of this report (next page) show the aggregate (corporate and receivership) 

expenditures of the FDIC.

Includes $210 million for the cumulative effect of an accounting change for certain postretirement benefits.

Includes $105.6 million net loss on government securities.

This amount represents interest and other insurance expenses from 1933 to 1972.

Includes the aggregate amount of $80.6 million of interest paid on Capital Stock between 1933 and 1948.

1

2

3

4

5

6

1

6

Total $ 90,588.0 $ 53,572.7 $ 6,709.1 $ 43,724.4 $ 55,419.0 $ 35,772.9 $ 12,633.6 $ 7,018.5 $ 35,169.0

1961 147.3 188.9 115.5 73.9 0.0323% 14.8 1.6 13.2 0.0 132.5

1960 144.6 180.4 100.8 65.0 0.0370% 12.5 0.1 12.4 0.0 132.1

1959 136.5 178.2 99.6 57.9 0.0370% 12.1 0.2 11.9 0.0 124.4

1958 126.8 166.8 93.0 53.0 0.0370% 11.6 0.0 11.6 0.0 115.2

1957 117.3 159.3 90.2 48.2 0.0357% 9.7 0.1 9.6 0.0 107.6

1956 111.9 155.5 87.3 43.7 0.0370% 9.4 0.3 9.1 0.0 102.5

1955 105.8 151.5 85.4 39.7 0.0370% 9.0 0.3 8.7 0.0 96.8

1954 99.7 144.2 81.8 37.3 0.0357% 7.8 0.1 7.7 0.0 91.9

1953 94.2 138.7 78.5 34.0 0.0357% 7.3 0.1 7.2 0.0 86.9

1952 88.6 131.0 73.7 31.3 0.0370% 7.8 0.8 7.0 0.0 80.8

1951 83.5 124.3 70.0 29.2 0.0370% 6.6 0.0 6.6 0.0 76.9

1950 84.8 122.9 68.7 30.6 0.0370% 7.8 1.4 6.4 0.0 77.0

1949 151.1 122.7 0.0 28.4 0.0833% 6.4 0.3 6.1 0.0 144.7

1948 145.6 119.3 0.0 26.3 0.0833% 7.0 0.7 6.3 0.0 138.6

1947 157.5 114.4 0.0 43.1 0.0833% 9.9 0.1 9.8 0.0 147.6

1946 130.7 107.0 0.0 23.7 0.0833% 10.0 0.1 9.9 0.0 120.7

1945 121.0 93.7 0.0 27.3 0.0833% 9.4 0.1 9.3 0.0 111.6

1944 99.3 80.9 0.0 18.4 0.0833% 9.3 0.1 9.2 0.0 90.0

1943 86.6 70.0 0.0 16.6 0.0833% 9.8 0.2 9.6 0.0 76.8

1942 69.1 56.5 0.0 12.6 0.0833% 10.1 0.5 9.6 0.0 59.0

1941 62.0 51.4 0.0 10.6 0.0833% 10.1 0.6 9.5 0.0 51.9

1940 55.9 46.2 0.0 9.7 0.0833% 12.9 3.5 9.4 0.0 43.0

1939 51.2 40.7 0.0 10.5 0.0833% 16.4 7.2 9.2 0.0 34.8

1938 47.7 38.3 0.0 9.4 0.0833% 11.3 2.5 8.8 0.0 36.4

1937 48.2 38.8 0.0 9.4 0.0833% 12.2 3.7 8.5 0.0 36.0

1936 43.8 35.6 0.0 8.2 0.0833% 10.9 2.6 8.3 0.0 32.9

1935 20.8 11.5 0.0 9.3 0.0833% 11.3 2.8 8.5 0.0 9.5

1933/4 7.0 0.0 0.0 7.0 N/A 10.0 0.2 9.8 0.0 (3.0)

Investment Effective Provision Administrative Interest and

Assessment Assessment and Other Assessment for and Operating Other Insur. Net Income/

Year Total Income Credits Sources Rate Total Losses Expenses2 Expenses (Loss)

111
FDIC

RTC

2,000

1,500

1,000

500

0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

FDIC Expenditures 1995-2005

The FDIC’s Strategic Plan and Annual Performance Plan provide

the basis for annual planning and budgeting for needed resources.

The 2005 aggregate budget (for corporate, receivership and

investment spending) was $1.18 billion, while actual expenditures

for the year were $1.05 billion, about $60 million less than 2004

expenditures.

Over the past ten years, the FDIC’s expenditures have varied 

in response to workload. During the past decade, expenditures

generally declined due to decreasing resolution and receivership

activity, although they temporarily increased in 1996 in conjunction

with the absorption of the Resolution Trust Corporation (RTC)

and its residual operations and workload. Total expenditures

increased in 2002 due to an increase in receivership-related

expenses. 

The largest component of FDIC spending is for costs associated

with staffing. Staffing decreased by just over 11 percent in 2005,

from 5,078 employees at the beginning of the year to 4,514 at

the end of the year.

Corporate Planning and Budget

Dollars in Millions

Note:

Resolution Trust Corporation (RTC) expenditures became the responsibility of the FDIC on January 1, 1996.

112
1

2

3

4

For 2005, the numbers are as of September 30, and prior years reflect December 31.

Starting in 1990, deposits in insured banks exclude those deposits held by Bank Insurance Fund members that are insured by the Savings Association Insurance Fund and include those

deposits held by Savings Association Insurance Fund members that are insured by the Bank Insurance Fund.

Estimated insured deposits reflect deposit information as reported in the fourth quarter FDIC Quarterly Banking Profile. Before 1991, insured deposits were estimated using percentages 

determined from the June 30 Call Reports.

Initial coverage was $2,500 from January 1 to June 30, 1934.

Deposits in Insured Banks ($ millions) Insurance Fund as a Percentage of

2005 $ 100,000 $ 4,782,354 $ 2,825,366 59.1 $ 35,334.4 0.74 1.25

2004 100,000 4,530,207 2,672,397 59.0 34,786.6 0.77 1.30

2003 100,000 4,139,287 2,554,624 61.7 33,782.2 0.82 1.32

2002 100,000 3,867,096 2,527,948 65.4 32,050.3 0.83 1.27

2001 100,000 3,584,610 2,408,878 67.2 30,438.8 0.85 1.26

2000 100,000 3,326,745 2,301,604 69.2 30,975.2 0.93 1.35

1999 100,000 3,038,385 2,157,536 71.0 29,414.2 0.97 1.36

1998 100,000 2,996,396 2,141,268 71.5 29,612.3 0.99 1.38

1997 100,000 2,785,990 2,055,874 73.8 28,292.5 1.02 1.38

1996 100,000 2,642,107 2,007,447 76.0 26,854.4 1.02 1.34

1995 100,000 2,575,966 1,952,543 75.8 25,453.7 0.99 1.30

1994 100,000 2,463,813 1,896,060 77.0 21,847.8 0.89 1.15

1993 100,000 2,493,636 1,906,885 76.5 13,121.6 0.53 0.69

1992 100,000 2,512,278 1.945,623 77.4 (100.6) (0.00) (0.01)

1991 100,000 2,520,074 1,957,722 77.7 (7,027.9) (0.28) (0.36)

1990 100,000 2,540,930 1,929,612 75.9 4,044.5 0.16 0.21

1989 100,000 2,465,922 1,873,837 76.0 13,209.5 0.54 0.70

1988 100,000 2,330,768 1,750,259 75.1 14,061.1 0.60 0.80

1987 100,000 2,201,549 1,658,802 75.3 18,301.8 0.83 1.10

1986 100,000 2,167,596 1,634,302 75.4 18,253.3 0.84 1.12

1985 100,000 1,974,512 1,503,393 76.1 17,956.9 0.91 1.19

1984 100,000 1,806,520 1,389,874 76.9 16,529.4 0.92 1.19

1983 100,000 1,690,576 1,268,332 75.0 15,429.1 0.91 1.22

1982 100,000 1,544,697 1,134,221 73.4 13,770.9 0.89 1.21

1981 100,000 1,409,322 988,898 70.2 12,246.1 0.87 1.24

1980 100,000 1,324,463 948,717 71.6 11,019.5 0.83 1.16

1979 40,000 1,226,943 808,555 65.9 9,792.7 0.80 1.21

1978 40,000 1,145,835 760,706 66.4 8,796.0 0.77 1.16

1977 40,000 1,050,435 692,533 65.9 7,992.8 0.76 1.15

1976 40,000 941,923 628,263 66.7 7,268.8 0.77 1.16

1975 40,000 875,985 569,101 65.0 6,716.0 0.77 1.18

1974 40,000 833,277 520,309 62.5 6,124.2 0.73 1.18

1973 20,000 766,509 465,600 60.7 5,615.3 0.73 1.21

1972 20,000 697,480 419,756 60.2 5,158.7 0.74 1.23

1971 20,000 610,685 374,568 61.3 4,739.9 0.78 1.27

1970 20,000 545,198 349,581 64.1 4,379.6 0.80 1.25

1969 20,000 495,858 313,085 63.1 4,051.1 0.82 1.29

1968 15,000 491,513 296,701 60.2 3,749.2 0.76 1.26

1967 15,000 448,709 261,149 58.2 3,485.5 0.78 1.33

1966 15,000 401,096 234,150 58.4 3,252.0 0.81 1.39

1965 10,000 377,400 209,690 55.6 3,036.3 0.80 1.45

1964 10,000 348,981 191,787 55.0 2,844.7 0.82 1.48

1963 10,000 313,304 177,381 56.6 2,667.9 0.85 1.50

1962 10,000 297,548 170,210 57.2 2,502.0 0.84 1.47

1961 10,000 281,304 160,309 57.0 2,353.8 0.84 1.47

1960 10,000 260,495 149,684 57.5 2,222.2 0.85 1.48

1959 10,000 247,589 142,131 57.4 2,089.8 0.84 1.47

1958 10,000 242,445 137,698 56.8 1,965.4 0.81 1.43

1957 10,000 225,507 127,055 56.3 1,850.5 0.82 1.46

1956 10,000 219,393 121,008 55.2 1,742.1 0.79 1.44

1955 10,000 212,226 116,380 54.8 1,639.6 0.77 1.41

1954 10,000 203,195 110,973 54.6 1,542.7 0.76 1.39

1953 10,000 193,466 105,610 54.6 1,450.7 0.75 1.37

1952 10,000 188,142 101,841 54.1 1,363.5 0.72 1.34

1951 10,000 178,540 96,713 54.2 1,282.2 0.72 1.33

1950 10,000 167,818 91,359 54.4 1,243.9 0.74 1.36

1949 5,000 156,786 76,589 48.8 1,203.9 0.77 1.57

1948 5,000 153,454 75,320 49.1 1,065.9 0.69 1.42

1947 5,000 154,096 76,254 49.5 1,006.1 0.65 1.32

1946 5,000 148,458 73,759 49.7 1,058.5 0.71 1.44

1945 5,000 157,174 67,021 42.4 929.2 0.59 1.39

1944 5,000 134,662 56,398 41.9 804.3 0.60 1.43

1943 5,000 111,650 48,440 43.4 703.1 0.63 1.45

1942 5,000 89,869 32,837 36.5 616.9 0.69 1.88

1941 5,000 71,209 28,249 39.7 553.5 0.78 1.96

1940 5,000 65,288 26,638 40.8 496.0 0.76 1.86

1939 5,000 57,485 24,650 42.9 452.7 0.79 1.84

1938 5,000 50,791 23,121 45.5 420.5 0.83 1.82

1937 5,000 48,228 22,557 46.8 383.1 0.79 1.70

1936 5,000 50,281 22,330 44.4 343.4 0.68 1.54

1935 5,000 45,125 20,158 44.7 306.0 0.68 1.52

1934 5,000 40,060 18,075 45.1 291.7 0.73 1.61

Total Estimated Percentage Deposit Total Estimated

Insurance Domestic Insured of Insured Insurance Domestic Insured

Year Coverage Deposits Deposits Deposits Fund Deposits Deposits

Estimated Insured Deposits and the Bank Insurance Fund, December 31,1934, through September 30, 2005 

2 3

4

1

113
Income Expenses and Losses

Income and Expenses, Savings Association Insurance Fund, by Year, 

from Beginning of Operations, August 9, 1989, through December 31, 2005

Dollars in Thousands

Funding

Investment Interest Administrative Transfer

and Effective Provision and Other and from

Assessment Other Assessment for Insurance Operating the FSLIC Net Income/

Year Total Income Sources Rate Total Losses Expenses Expenses Resolut. Fund (Loss)

Total $ 14,543,505 $ 8,659,789 $ 5,883,716 $ 1,661,638 $ 374,377 $ 30,990 $ 1,256,271 $ 139,498 $ 13,021,365

2005 636,989 8,315 628,674 0.001% 97,852 (21,988) 372 119,468 0 539,137

2004 564,777 8,891 555,886 0.001% 48,326 (72,385) 713 119,998 0 516,451

2003 547,260 14,594 532,666 0.001% 47,200 (82,489) 105 129,584 0 500,060

2002 588,821 23,783 565,038 0.003% (31,380) (156,494) 751 124,363 0 620,201

2001 733,121 35,402 697,719 0.004% 564,083 443,103 19,389 101,591 0 169,038

2000 664,080 19,237 644,843 0.002% 300,018 180,805 8,293 110,920 0 364,062

1999 600,995 15,116 585,879 0.002% 124,156 30,648 626 92,882 0 476,839

1998 583,859 15,352 568,507 0.002% 116,629 31,992 9 84,628 0 467,230

1997 549,912 13,914 535,998 0.004% 69,986 (1,879) 0 71,865 0 479,926

1996 5,501,684 5,221,560 280,124 0.204% (28,890) (91,636) 128 62,618 0 5,530,574

1995 1,139,916 970,027 169,889 0.234% (281,216) (321,000) 0 39,784 0 1,421,132

1994 1,215,289 1,132,102 83,187 0.244% 434,303 414,000 0 20,303 0 780,986

1993 923,516 897,692 25,824 0.250% 46,814 16,531 0 30,283 0 876,702

1992 178,643 172,079 6,564 0.230% 28,982 (14,945) (5) 43,932 35,446 185,107

1991 96,446 93,530 2,916 0.230% 63,085 20,114 609 42,362 42,362 75,723

1990 18,195 18,195 0 0.208% 56,088 0 0 56,088 56,088 18,195

1989 2 0 2 0.208% 5,602 0 0 5,602 5,602 2

114
Deposits in Insured Institutions ($ Millions) Insurance Fund as a Percentage of 

Total Estimated Percentage of Deposit Total Estimated

Insurance Domestic Insured Insured Insurance Domestic Insured

Year2 Coverage Deposits Deposits Deposits Fund Deposits Deposits 3

Estimated Insured Deposits and the Savings Association Insurance Fund, 

December 31, 1989, through September 30, 2005

2005 $ 100,000 $ 1,254,070 $ 1,005,554 80.2 $ 13,038.8 1.04 1.30

2004 100,000 1,156,473 951,316 82.3 12,720.2 1.10 1.34

2003 100,000 1,042,729 896,493 86.0 12,240.1 1.17 1.37

2002 100,000 990,231 860,351 86.9 11,746.7 1.19 1.37

2001 100,000 897,278 801,849 89.4 10,935.0 1.22 1.36

2000 100,000 822,610 752,756 91.5 10,758.6 1.31 1.43

1999 100,000 764,359 711,345 93.1 10,280.7 1.35 1.45

1998 100,000 751,413 708,959 94.4 9,839.8 1.31 1.39

1997 100,000 721,503 690,132 95.7 9,368.3 1.30 1.36

1996 100,000 708,749 683,090 96.4 8,888.4 1.25 1.30

1995 100,000 742,547 711,017 95.8 3,357.8 0.45 0.47

1994 100,000 720,823 692,626 96.1 1,936.7 0.27 0.28

1993 100,000 726,473 695,158 95.7 1,155.7 0.16 0.17

1992 100,000 760,902 729,458 95.9 279.0 0.04 0.04

1991 100,000 810,664 776,351 95.8 93.9 0.01 0.01

1990 100,000 874,738 830,028 94.9 18.2 0.00 0.00

1989 100,000 948,144 882,920 93.1 0.0 0.00 0.00

Estimated

Receivership

Year 2 Total Assets Deposits Loss Loss to Funds

Total 754 397,387,643 320,186,773 75,471,820 82,009,786

2005 0 0 0 0 0

2004 1 15,346 13,005 0 0

2003 0 0 0 0 0

2002 1 50,246 50,542 973 973

2001 1 2,179,783 1,670,802 338,694 338,694

2000 1 29,530 28,583 1,322 1,322

1999 1 62,956 63,427 1,195 1,194

1998 0 0 0 0 0

1997 0 0 0 0 0

1996 1 32,576 32,745 21,921 21,921

1995 2 423,819 414,692 28,192 27,750

1994 2 136,815 127,508 11,472 14,599

1993 10 7,178,794 5,708,253 267,595 65,212

1992 59 44,196,946 34,773,224 3,237,913 3,772,356

1991 144 78,898,804 65,173,122 8,635,366 9,086,672

1990 213 129,662,398 98,963,961 16,064,160 19,257,844

19895 318 134,519,630 113,166,909 46,863,017 49,421,249

Number, Assets, Deposits, Losses, and Loss to Funds of Insured Thrifts 

Taken Over or Closed Because of Financial Difficulties, 1989 through 20051

Dollars in Thousands

3 4

Prior to July 1,1995, all thrift closings were the responsibility of the Resolution Trust Corporation (RTC). Since the RTC was terminated on December 31, 1995, and all assets and liabilities 

transferred to the FSLIC Resolution Fund (FRF), all the results of the thrift closing activity from 1989 through 1995 are now reflected on FRF’s books. The Savings Association Insurance 

Fund (SAIF) became responsible for all thrifts closed after June 30, 1995; there have been only six such failures. Additionally, SAIF was appointed receiver of one thrift (Heartland FSLA) 

on October 8, 1993, because, at that time, RTC’s authority to resolve FSLIC-insured thrifts had not yet been extended by the RTC Completion Act.

Year is the year of failure, not the year of resolution.

The estimated losses represent the projected loss at the fund level from receiverships for unreimbursed subrogated claims of the FRF/SAIF and unpaid advances to receiverships from 

the FRF.

The Loss to Funds represents the total resolution cost of the failed thrifts in the SAIF and FRF-RTC funds, which includes corporate revenue and expense items such as interest expense 

on Federal Financing Bank debt, interest expense on escrowed funds, and interest revenue on advances to receiverships, in addition to the estimated losses for receiverships.

Total for 1989 excludes nine failures of the former FSLIC.

1

2

3

4

5

1

For 2005, the numbers are as of September 30, and prior years reflect December 31.

Starting in 1990, deposits in insured institutions exclude those deposits held by Savings Association Insurance Fund members that are insured by the Bank Insurance Fund and include 

those deposits held by Bank Insurance Fund members that are insured by the Savings Association Insurance Fund.

Estimated insured deposits reflect deposit information as reported in the fourth quarter FDIC Quarterly Banking Profile. Before 1991, insured deposits were estimated using percentages 

determined from the June 30 Call Reports.

1

2

3

115
2005 2004 2003

Deposit Insurance 219 176 141

Approved 219 176 140

Denied 0 0 1

New Branches 1,575 1,447 1,227

Approved 1,575 1,447 1,227

Denied 0 0 0

Mergers 286 311 304

Approved 286 311 304

Denied 0 0 0

Requests for Consent to Serve●170 301 369

Approved 170 301 368

Section 19 13 13 13

Section 32 157 288 355

Denied 0 0 1

Section 19 0 0 0

Section 32 0 0 1

Notices of Change in Control 9 18 30

Letters of Intent Not to Disapprove 9 18 30

Disapproved 0 0 0

Brokered Deposit Waivers 40 32 28

Approved 40 32 28

Denied 0 0 0

Savings Association Activities■59 70 56

Approved 59 70 56

Denied 0 0 0

State Bank Activities/Investments▼18 27 19

Approved 18 27 19

Denied 0 0 0

Conversions of Mutual Institutions 11 12 7

Non-Objection 11 12 7

Objection 0 0 0

Under Section 19 of the Federal Deposit Insurance (FDI) Act, an insured institution must receive FDIC approval before 

employing a person convicted of dishonesty or breach of trust. Under Section 32, the FDIC must also approve any change 

of directors or senior executive officers at a state nonmember bank that is not in compliance with capital requirements 

or is otherwise in troubled condition.

Amendments to Part 303 of the FDIC Rules and Regulations changed FDIC oversight responsibility in October 1998. 

In 1998, Part 303 changed the Delegations of Authority to act upon applications.

Section 24 of the FDI Act, in general, precludes a federally insured state bank from engaging in an activity not 

permissible for a national bank and requires notices to be filed with the FDIC. 

FDIC Actions on Financial Institutions Applications 2003-2005

●

■

▼

116
2005 2004 2003

Total Number of Actions Initiated by the FDIC 192 217 174

Termination of Insurance 

Involuntary Termination

Sec. 8a For Violations, Unsafe/Unsound Practices or Condition 0 0 0

Voluntary Termination 

Sec.8a By Order Upon Request 0 0 0

Sec.8p No Deposits 2 2 5

Sec.8q Deposits Assumed 11 38 12

Sec. 8b Cease-and-Desist Actions

Notices of Charges Issued 0 0 2

Consent Orders 20 28 33

Sec. 8e Removal/Prohibition of Director or Officer 

Notices of Intention to Remove/Prohibit 2 3 4

Consent Orders 73 58 31

Sec. 8g Suspension/Removal When Charged With Crime 0 1 0

Civil Money Penalties Issued

Sec.7a Call Report Penalties 0 0 0

Sec.8i Civil Money Penalties 69 68 55

Sec. 10c Orders of Investigation 15 15 20

Sec. 19 Denials of Service After Criminal Conviction 0 1 0

Sec. 32 Notices Disapproving Officer/Director’s Request for Review 0 0 1

Truth-in-Lending Act Reimbursement Actions

Denials of Requests for Relief 0 0 0

Grants of Relief 0 0 0

Banks Making Reimbursement ●78 73 96

Suspicious Activity Reports (Open and closed institutions)●102,080 83,453 62,179

Other Actions Not Listed 0 3 11

These actions do not constitute the initiation of a formal enforcement action and, therefore, are not included in the total 

number of actions initiated.

Compliance, Enforcement and Other Related Legal Actions 2003-2005

●

117
FDIC Board of Directors

Acting Chairman Martin J. Gruenberg (seated), 

John C. Dugan, Thomas J. Curry, and John M. Reich (standing, left to right)

Appendix B– More About the FDIC

alternately Committee Chairman and

Ranking Member on the U.S. Senate

Committee on Banking, Housing,

and Urban Affairs. Mr. Gruenberg

advised the Senator on all issues of

domestic and international financial

regulation, monetary policy and

trade. Mr. Gruenberg also served 

as Counsel to Senator Sarbanes from

1993 to 1994, advising him on all

issues under the jurisdiction of the

Banking Committee, and as Staff 

Director of the Banking Committee’s

Subcommittee on International

Finance and Monetary Policy from

1987 to 1992. Mr. Gruenberg’s 

congressional experience with

finance and banking issues dates 

back to 1979.

Mr. Gruenberg holds a J.D. from

Case Western Reserve Law School

and an A.B. from Princeton University,

Woodrow Wilson School of Public

and International Affairs.

Martin J. Gruenberg

Martin J. Gruenberg was sworn in 

as Vice Chairman of the FDIC Board

of Directors on August 22, 2005. He

became Acting Chairman of the FDIC

on November 15, 2005, upon the 

resignation of Chairman Donald Powell.

Mr. Gruenberg joined the Board after

broad congressional experience in

the financial services and regulatory

areas. He had been Senior Counsel

to Senator Paul S. Sarbanes (D-MD)

since 1995 while the Senator was 

118

James Kegley
Donald E. Powell

Donald E. Powell served as the 

18th Chairman of the FDIC from

August 29, 2001, until his resignation

on November 15, 2005. Prior to being

named the 18th Chairman of the

FDIC, Mr. Powell– a life-long Texan–

was President and CEO of The First

National Bank of Amarillo, where he

started his banking career in 1971. 

In addition to his professional experience as a banker, Mr. Powell served

on numerous boards at universities,

civic associations, hospitals and 

charities. Mr. Powell has served as

the Chairman of the Board of Regents

of the Texas A&M University System,

which has more than 90,000 students,

the Chairman of the Amarillo Chamber

of Commerce, and on the Advisory

Board of the George Bush School 

of Government and Public Service. 

He received his B.S. in economics

from West Texas State University and

is a graduate of The Southwestern

Graduate School of Banking at

Southern Methodist University.

Thomas J. Curry

Mr. Curry took office as a member 

of the FDIC Board of Directors on

January 12, 2004. Previously, he

had served five Massachusetts

Governors as the Commonwealth’s

Commissioner of Banks, from 

1995 to 2003. He served as Acting

Commissioner from 1994 to 1995,

and as First Deputy Commissioner

from 1987 to 1994. 

Mr. Curry is Chairman of the

Neighborhood Reinvestment

Corporation. Mr. Curry was also

Chairman of the Conference of 

State Bank Supervisors from 2000 

to 2001, and a member of the State

Liaison Committee of the Federal

Financial Institutions Examination

Council from 1996 to 2003.

Mr. Curry joined the Commonwealth’s

Division of Banks in 1986. He

entered state government in 1982 as

an attorney with the Massachusetts

Secretary of State's Office.

Mr. Curry is a graduate of Manhattan

College (summa cum laude), where

he was elected to Phi Beta Kappa.

He received his law degree from 

the New England School of Law. 

John C. Dugan

Mr. Dugan was sworn in as the 

29th Comptroller of the Currency 

on August 4, 2005. As Comptroller,

Mr. Dugan serves as an ex-officio

member of the FDIC Board. 

Prior to his appointment as

Comptroller, Mr. Dugan was a

partner at the law firm of Covington

& Burling, where he chaired the

firm’s Financial Institutions Group,

specializing in banking and financial

institution regulation. He also served

as outside counsel to the ABA

Securities Association. 

He served at the Department of

Treasury from 1989 to 1993 and 

was appointed assistant secretary

for domestic finance in 1992. In

1991, he oversaw a comprehensive

study of the banking industry that

formed the basis for the financial

modernization legislation proposed

by the administration of the first

President Bush. From 1985 to 

1989, Mr. Dugan was minority

counsel and minority general counsel

for the U.S. Senate Committee on

Banking, Housing, and Urban Affairs. 

Among his professional and volunteer

activities before becoming Comptroller,

he served as a director of Minbanc, 

a charitable organization whose 

mission is to enhance professional

and educational opportunities for

minorities in the banking industry. 

He is also a member of the American

Bar Association’s committee on

banking law, the Federal Bar

Association’s Section of Financial

Institutions and the Economy, 

and the District of Columbia Bar

Association’s Section of Corporations,

Finance, and Securities Laws. 

A graduate of the University of

Michigan in 1977 with an A.B. in

English literature, Mr. Dugan also

earned his J.D. from Harvard Law

School in 1981.

119
Julie L. Williams

Ms. Williams served as Acting

Comptroller of the Currency, 

and a member of the FDIC 

Board of Directors from 

October 14, 2004 until the

confirmation of Mr. John C. Dugan

as Comptroller of the Currency on

August 4, 2005. Ms. Williams has

been First Senior Deputy Comptroller

since 1999 and also Chief Counsel 

of the Office of the Comptroller of

the Currency (OCC) since 1994. She

was also Acting Comptroller from

April to December 1998. 

As Chief Counsel, Ms. Williams 

was responsible for all of the OCC’s

legal activities and also supervised

the Licensing Department and the

Community Affairs Department. 

Ms. Williams served as a member 

of the OCC’s Executive Committee.

She has led the Executive Committee

in providing policy and strategic

direction to the agency.

Ms. Williams is a graduate of Goddard

College, Vermont, and graduated

first in her class at Antioch School 

of Law, Washington, DC. She is 

the author of numerous articles 

on banking, securities and financial

institutions law. 

John M. Reich

John M. Reich was sworn in 

as Director of the Office of Thrift

Supervision (OTS) on August 9, 2005.

In this capacity, Mr. Reich, who 

formerly served as Vice Chairman 

of the FDIC Board of Directors, will

continue to serve as an FDIC Board

member. 

Mr. Reich served as Vice Chairman

of the FDIC Board of Directors from

November 2002 until his appointment

as Director of OTS. He has been 

a member of the FDIC Board since

January 2001. He also served as

Acting Chairman of the FDIC 

from July to August 2001. 

Prior to coming to Washington, DC,

Mr. Reich spent 23 years as a community banker in Illinois and Florida,

including 10 years as President and

CEO of the National Bank of Sarasota,

in Sarasota, Florida. 

Mr. Reich also served 12 years on 

the staff of U.S. Senator Connie Mack 

(R-FL), before joining the FDIC.

From 1998 through 2000, he was

Senator Mack’s Chief of Staff, 

directing and overseeing all of the

Senator’s offices and committee

activities, including those at the

Senate Banking Committee. 

Mr. Reich’s community service

includes serving as Chairman of 

the Board of Trustees of a public

hospital facility in Ft. Myers, FL, 

and as Chairman of the Board of

Directors of the Sarasota Family

YMCA. He has also served as a 

Board member for a number of 

civic organizations, and was active 

for many years in youth baseball 

programs. 

Mr. Reich holds a B.S. degree from

Southern Illinois University and 

an M.B.A. from the University of

South Florida. He is also a graduate

of Louisiana State University’s

School of Banking of the South. 

James E. Gilleran 

Mr. Gilleran became Director of the

Office of Thrift Supervision (OTS) on

December 7, 2001. As OTS Director,

Mr. Gilleran was an ex-officio member

of the FDIC Board until his resignation

on April 29, 2005.

Mr. Gilleran was Chairman and CEO

of the Bank of San Francisco from

October 1994 until December 2000.

From 1989 to 1994, he was the

California State Banking Superintendent. He served as Chairman 

of the Conference of State Bank

Supervisors (CSBS) from 1993 to

1994, and was a member of the

CSBS's Bankers Advisory Council

until 2000. 

Mr. Gilleran is a certified public

accountant and a member of the

American Institute of CPAs. He 

graduated from Pace University in

1955, and received his law degree

from Northwestern California

University in 1996.

120
FDIC Organization Chart/Officials

as of December 31, 2005

Board of Directors

Martin J. Gruenberg (acting)

Thomas J. Curry

John M. Reich

John C. Dugan

Office of the Chairman

Martin J. Gruenberg

Acting Chairman

Special Advisor 

to the Chairman

George E. French

Deputy to the Chairman 

and Chief Operating Officer

John F. Bovenzi

Division of Insurance 

and Research

Arthur J. Murton

Director

Division of Resolutions 

and Receiverships

Mitchell L. Glassman

Director

Division of 

Administration

Arleas Upton Kea

Director

Legal 

Division

William F. Kroener, III

General Counsel

Division of Supervision 

and Consumer Protection

Christopher J. Spoth

Acting Director

Division of Information 

Technology

Michael E. Bartell

Director

Office of Diversity and 

Economic Opportunity

D. Michael Collins

Director

Office of the 

Ombudsman

Cottrell L. Webster

Ombudsman

Division 

of Finance

Frederick S. Selby

Director

Office of Enterprise 

Risk Management

James H. Angel, Jr.

Director

General

Counsel

William F. Kroener, III

Deputy to the Chairman 

and Chief Financial Officer

Steven O. App 

Office of 

Legislative Affairs

Alice C. Goodman

Director

Office of 

Public Affairs

D.J.Nordquist

Director/Deputy Chief of Staff

Vice Chairman

Martin J. Gruenberg

Corporate 

University

David C. Cooke

Chief, Learning Officer

Office of Inspector 

General

Patricia M. Black

Acting Inspector General

Chief Information Officer

Chief Privacy Officer

Michael E. Bartell

Deputy to the

Acting Chairman

Sandra L. Thompson

121
15,000

12,000

9,000

6,000

3,000

0

FDIC Staffing

Note:

All staffing totals reflect year-end balances.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Staffing Trends 1996-2005

9,151 7,793 7,359 7,266 6,452 6,167 5,430 5,311 5,078 4,514

Corporate Staffing

122
Total Washington Regional/ Field 

2005 2004 2005 2004 2005 2004

Executive Offices●37 42 37 42 0 0

Division of Supervision and Consumer Protection 2,541 2,604 198 179 2,343 2,425

Division of Resolutions and Receiverships 235 504 61 99 174 405

Legal Division 433 488 274 303 159 185

Division of Finance 175 195 175 195 0 0

Division of Information Technology▼270 386 209 324 61 62

Division of Insurance and Research 178 191 146 157 32 34

Division of Administration 349 415 232 274 117 141

Office of Inspector General 127 157 95 111 32 46

Office of Diversity and Economic Opportunity 31 34 31 34 0 0

Office of the Ombudsman 12 18 10 15 2 3

Office of Enterprise Risk Management 11 12 11 12 0 0

Corporate University 115 32 37 32 78 0

Total 4,514 5,078 1,516 1,777 2,998 3,301

Includes the Offices of the Chairman, Vice Chairman, Director (Appointive), Chief Operating Officer, Chief Financial Officer, Chief Information Officer, Legislative Affairs, and 

Public Affairs.

Division of Information Resources Management was renamed to Division of Information Technology on September 4, 2005.

Office of Internal Control Management was renamed to Office of Enterprise Risk Management on April 2, 2004.

●

▼

■

■

Number of Officials and Employees of the FDIC 2004-2005 (year-end)

123
Sources of Information

Home Page on the Internet

www.fdic.gov

A wide range of banking, consumer

and financial information is available

on the FDIC’s Internet home page.

This includes the FDIC’s Electronic

Deposit Insurance Estimator (EDIE),

which estimates an individual’s

deposit insurance coverage; the

Institution Directory – financial 

profiles of FDIC-insured institutions;

Community Reinvestment Act 

evaluations and ratings for institutions

supervised by the FDIC; Call Reports–

banks’ reports of condition and

income; and Money Smart, a

training program to help individuals

outside the financial mainstream

enhance their money management

skills and create positive banking

relationships. Readers also can

access a variety of consumer 

pamphlets, FDIC press releases,

speeches and other updates on 

the agency’s activities, as well as

corporate databases and customized

reports of FDIC and banking industry

information.

FDIC Call Center

Phone: 877-275-3342 

(877-ASK FDIC)

703-562-2222 

Hearing

Impaired: 800-925-4618

The FDIC Call Center in Washington, DC,

is the primary telephone point of 

contact for general questions from 

the banking community, the public and 

FDIC employees. The Call Center

directly, or in concert with other FDIC

subject-matter experts, responds to

questions about deposit insurance and

other consumer issues and concerns,

as well as questions about FDIC

programs and activities. The Call

Center also makes referrals to other

federal and state agencies as needed.

Hours of operation are 8:00 a.m. to

8:00 p.m. Eastern Time. Information 

is also available in Spanish. Recorded

information about deposit insurance

and other topics is available 24 hours

a day at the same telephone number.

Public Information Center

3503 Fairfax Drive

Room E-1002

Arlington, VA 22226

Phone: 877-275-3342 

(877-ASK FDIC), or

703-562-2200 

Fax: 703-562-2296

E-mail: publicinfo@fdic.gov

FDIC publications, press releases,

speeches and Congressional 

testimony, directives to financial

institutions, policy manuals and other

documents are available on request

or by subscription through the 

Public Information Center. These

documents include the Quarterly

Banking Profile, FDIC Consumer

News and a variety of deposit 

insurance and consumer pamphlets.

Office of the Ombudsman

3503 Fairfax Drive

Room E-2022

Arlington, VA 22226

Phone: 877-275-3342 

(877- ASK FDIC)

Fax: 703-562-6057

E-mail: ombudsman@fdic.gov

The Office of the Ombudsman

responds to inquiries about the 

FDIC in a fair, impartial and timely

manner. It researches questions and

complaints from bankers and the

public. The Office also recommends

ways to improve FDIC operations,

regulations and customer service.

124
Memphis Area Office

5100 Poplar Avenue

Suite 1900

Memphis, Tennessee 38137

(901) 685-1603

Arkansas 

Louisiana 

Mississippi

Tennessee

Regional and Area Offices

125

Atlanta Regional Office

10 Tenth Street, NE

Suite 800

Atlanta, Georgia 30309

(678) 916-2200

Alabama Virginia

Florida West Virginia

Georgia

North Carolina

South Carolina

Chicago Regional Office

500 West Monroe Street

Suite 3500

Chicago, Illinois 60661

(312) 382-7500

Illinois Wisconsin

Indiana 

Kentucky

Michigan 

Ohio

Dallas Regional Office

1910 Pacific Avenue

Suite 1900

Dallas, Texas 75201

(214 ) 754-0098

Colorado

New Mexico

Oklahoma

Texas

Kansas City Regional Office

2345 Grand Boulevard

Suite 1200

Kansas City, Missouri 64108

(816) 234-8000

Iowa North Dakota

Kansas South Dakota

Minnesota 

Missouri

Nebraska

New York Regional Office

20 Exchange Place

4th Floor

New York, New York 10005

(917) 320-2500

Delaware Puerto Rico

District of Columbia Virgin Islands

Maryland 

New Jersey

New York

Pennsylvania

Boston Area Office

15 Braintree Hill Office Park

Suite 100

Braintree, Massachusetts 02184

(781) 794-5500

Connecticut

Maine

Massachusetts 

New Hampshire

Rhode Island

Vermont

San Francisco Regional Office

25 Ecker Street

Suite 2300

San Francisco, California 94105

(415) 546-0160

Alaska Montana

Arizona Nevada

California Oregon

Guam Utah

Hawaii Washington

Idaho Wyoming
In keeping with the Reports Consolidation Act, the OIG has identified the 

following management and performance challenges facing the Corporation.●

Each of the challenges we have identified is marked by one or more of the 

following characteristics:

1. It is important to the achievement of the FDIC mission and the 

strength of the nation’s financial system.

2. It involves significant resources, expenditures or fiduciary 

responsibility.

3. It directly impacts consumers of financial services.

The following challenges reflect the OIG's view of the Corporation's overall 

program and operational responsibilities; industry, economic and technological

trends; areas of congressional interest; relevant laws and regulations; the 

Chairman’s priorities and corresponding corporate performance and 

Government Performance and Results Act goals; and the ongoing activities 

to address the issues involved.

● Assessing and Mitigating Risks to the Insurance Funds

● Ensuring Institution Safety and Soundness Through Effective 

Examinations, Enforcement and Follow-Up

● Contributing to Public Confidence in Insured Depository Institutions

● Protecting and Educating Consumers and Ensuring Compliance 

● Being Ready for Potential Institution Failures

● Managing and Protecting Financial, Human, Information Technology 

and Procurement Resources

Assessing and Mitigating Risks As of the end of the third quarter of 2005, the FDIC insured $3.830 trillion 

to the Insurance Funds in deposits in 8,856 institutions. According to FDIC projections, if the current

trend of industry consolidation continues, the banks the FDIC directly 

supervises will likely represent a smaller and smaller portion of the financial 

exposure it faces as deposit insurer. Also, another potential risk has become 

apparent as a result of recent natural disasters–multiple bank failures in 

a geographic region. Given these circumstances, the Corporation faces 

several challenges:

Assessing Risks in Large Banks

To effectively fulfill its fundamental responsibilities as deposit insurer, the 

Corporation must ensure its large-bank program provides ready access to 

the information it needs to effectively identify and assess risks that large 

institutions, including those it does not supervise, pose to the insurance 

funds. Effectively communicating and coordinating with the other primary 

federal banking regulators is central to the Corporation’s ability to meet this 

Under the Reports Consolidation Act, the OIG is required to identify the most significant management 

and performance challenges facing the Corporation and provide its assessment to the Corporation for 

inclusion in its annual performance and accountability report (annual report). The OIG conducts this 

assessment yearly and identifies a number of specific areas of challenge facing the Corporation at the 

time.

●

126

Appendix C – Office of Inspector General’s Assessment 

of the Management and Performance Challenges Facing the FDIC
challenge. Moreover, given the inherent complexity of these large institutions, 

the FDIC must have or develop the capability to assess the risks associated 

with these institutions, which are different from those found in smaller banks.

As the FDIC and other regulators are evaluating policy options to ensure that

large institutions and the industry as a whole maintain adequate capital and 

reserves under Basel II, the FDIC must ensure that its staff has the necessary

information and expertise to understand and evaluate the adequacy of the 

largest institutions’ capital models. The possibility of a large bank failure, 

however remote, looms as a significant challenge confronting the FDIC.

Monitoring Risks from Recent Natural Disasters

The FDIC and the other primary federal regulators have long emphasized the 

importance of disaster recovery and business continuity planning at insured 

depository institutions. While the focus of September 11 was on terrorist 

attacks and related disruption of commercial activities, recent natural disasters

have added a new dimension to the risks associated with major regional 

crises. While initial indications from the FDIC are that the banking industry 

has initially fared well through the latest natural disasters, considerable risk 

remains over the long term to affected institutions and, in turn, the insurance

funds. For example, the impact, if any, of relaxing examination and other 

regulatory requirements will likely not be plainly visible for many months.

Preparing for Deposit Insurance Reform 

The FDIC has been working with the Congress over the past several 

years on a comprehensive deposit insurance reform package. If enacted, 

the FDIC will be faced with managing the funds under the current system 

while transitioning under tight time constraints to a new fund structure and 

premium system. Implementation of operational changes may result from 

deposit insurance reform.

Ensuring Institution Safety Supervision is a cornerstone of the FDIC's efforts to ensure stability and 

and Soundness through Effective public confidence in the nation's financial system. As of September 30, 2005,

Examinations, Enforcement the FDIC was the primary federal regulator for more than 5,250 institutions. 

and Follow-up The FDIC performs safety and soundness, Bank Secrecy Act (BSA), information

technology, trust and other types of examinations of FDIC-supervised insured

depository institutions. The Corporation’s system of supervisory controls 

must identify and effectively address financial institution activities that are 

unsafe, unsound, illegal or improper before the activities cause a drain on 

the insurance funds. Specific challenges related to this core FDIC mission 

include:

Maintaining an Effective Examination and Supervision Program

The FDIC has adopted a more risk-focused approach to examinations to 

minimize regulatory burden and better direct its resources to those areas 

that carry the greatest potential risk. The FDIC must continue to monitor 

the effectiveness of its risk-focused procedures and any related resource 

reductions to ensure that this approach does not compromise examination 

quality or results. The FDIC must also ensure that financial institutions have 

adequate corporate governance structures relative to the bank's size, 

complexity and risk profile to prevent financial losses and maintain confidence

in those entrusted with operating the institutions. The FDIC’s follow-up 

processes must be effective to ensure institutions are promptly complying 

with supervisory actions that arise as a result of the FDIC’s examination 

process. 

127
Supervising Industrial Loan Companies 

The FDIC is the primary federal regulator for a number of industrial loan 

companies (ILCs), which are insured depository institutions owned by 

organizations that, as bank holding companies, are subject to a different 

supervisory regimen when compared to other bank holding companies. 

The ILC industry includes large, complex financial institutions. The FDIC 

must establish and maintain effective controls in its processes for granting 

insurance to, supervising and examining ILCs and their parent companies, 

particularly in cases where consolidated supervision is not provided by 

another federal regulator. 

Contributing to Public Confidence Guarding Against Financial Crimes in Insured Institutions 

in Insured Depository Institutions All financial institutions are at risk of being used to facilitate or being 

victimized by criminal activities including money laundering and terrorist 

financing. Such activities serve to undermine public confidence in the 

institutions. The Corporation is faced with developing and implementing 

programs to minimize the extent to which the institutions it supervises are 

involved in or victims of financial crimes and other abuse. The challenge is 

to facilitate the effective implementation of regulatory reporting requirements

without imposing any undue regulatory burden. Examiners must also be 

alert to the possibility of fraudulent activity in financial institutions, which 

is inherently difficult because fraud is both purposeful and hard to detect. 

Part of the FDIC's overall responsibility and authority to examine banks for 

safety and soundness is the responsibility for examining state-chartered 

non-member financial institutions for compliance with the Bank Secrecy Act. 

The BSA requires financial institutions to keep records and file reports on 

certain financial transactions. FDIC-supervised institutions are required to 

establish and maintain procedures designed to assure and monitor compliance

with the BSA’s requirements. An institution's level of risk for potential money

laundering determines the necessary scope of the BSA examination. In its 

role as supervisor, the FDIC also analyzes data security threats, occurrences 

of bank security breaches, and incidents of electronic crime that involve 

financial institutions. Misuse and misappropriation of personal information 

are emerging as major developments in financial crime. Despite generally 

strong controls and practices by financial institutions, methods for stealing 

personal data and committing fraud with that data are continuously evolving. 

The FDIC must continue its work in assuring the security of customer data 

against such criminal activity to help maintain the public's trust in the banking

system.

Protecting and The FDIC protects consumers through its oversight of a variety of statutory 

Educating Consumers and regulatory requirements aimed at safeguarding consumers from unfair 

and Ensuring Compliance and unscrupulous banking practices. Through community outreach efforts 

and technical assistance, the FDIC encourages lenders to work with members

of their local communities in meeting the communities' credit needs. Specific

challenges include:

128
Protecting Consumer Privacy 

The FDIC implements regulations and conducts regularly scheduled 

examinations to verify that institutions comply with laws designed to protect

personal information, which serve to guard against the growing threat of 

identity theft. The FDIC evaluates the adequacy of financial institutions’ 

programs for securing customer data and may pursue informal or formal 

supervisory action if it finds a deficiency. 

Educating the Public and Handling Complaints 

The FDIC has made it a priority to impart financial education to the millions 

of Americans who lack basic financial skills. The Corporation's challenge is 

to join with its regulatory counterparts to effectively implement programs 

that help integrate into the financial system the large number of households 

that are isolated from the opportunity to establish credit, own a home, and 

build a better future for their families. 

Regulating Lending Practices 

The FDIC’s programs of supervision and education can help prevent abusive 

lending practices that target the financially illiterate or disadvantaged. The 

FDIC must evaluate laws and implement regulations to find ways to curb 

these lending practices, while ensuring continued access to credit for the 

widest range of qualified customers and protection against the abuse of 

vulnerable individuals. The challenge is to balance the need for regulation 

with avoiding inappropriate or undue interference in legitimate business 

activities.

Ensuring Compliance with Laws and Regulations 

The FDIC is responsible for evaluating financial institution compliance with 

consumer protection laws and regulations. Such laws include, for example, 

the Community Reinvestment Act, Home Mortgage Disclosure Act, and 

Fair Credit Reporting Act. In June 2003, the FDIC revised its compliance 

examination program. Compliance examinations now combine a risk-based 

examination process with an in-depth evaluation of an institution's compliance

management system, resulting in a top-down, risk-focused approach to 

examinations. The Corporation’s challenge is to ensure that the new approach

makes the examination process more effective and efficient and reduces 

the examination burden on banks. 

Being Ready for Potential The FDIC is responsible for the resolution of failed banks or savings 

Institution Failures associations. The Corporation is required by law to protect taxpayers by 

prudently managing the Bank Insurance Fund and the Savings Association 

Insurance Fund and to protect insured depositors by using the assets of the 

funds to pay insured deposits at the time of the institution failure. The trend 

toward fewer failures over the past few years changes the nature of the 

challenge for the FDIC. Planning for failing and failed institutions, including 

large or multiple bank failures, needs to be evaluated, revisited and tested 

for adequacy in light of FDIC downsizing activities and corresponding loss 

of institutional knowledge and expertise. Catastrophic events such as the 

multiple hurricanes that occurred during the past year underscore the need 

for the Corporation’s readiness to respond. 

129
Managing and Protecting Financial, The FDIC must effectively manage and utilize a number of critical strategic 

Human, Information Technology resources in order to carry out its mission successfully, particularly its financial,

and Procurement Resources human, information technology (IT) and procurement resources. The FDIC 

has emphasized its stewardship responsibilities in its strategic planning 

process. A number of key management activities pose governance challenges

to corporate executives and managers, as discussed below: 

Financial Resource and Capital Investment Management 

The FDIC’s operating expenses are largely paid from the insurance funds, 

and consistent with good corporate governance principles, the Corporation 

must continuously seek to improve its operational efficiency. Because 65 

percent of the FDIC's budget costs are personnel-related, a challenge to the 

Corporation is to ensure that budgeted resources are properly aligned with 

workload. With respect to capital investments, effective planning and 

management of IT and non-IT capital investments are mandated by 

Congress and by the Office of Management and Budget for most federal 

agencies. Although many of these laws and executive orders are not legally 

binding on the FDIC, the Corporation recognizes that they constitute best 

practices and has adopted them in whole, or in part. The underlying challenge

is to carry out approved investment projects on time and within budget, 

while realizing anticipated benefits.

Human Capital Management 

In the last several years, the FDIC has undergone significant restructuring 

and downsizing in response to changes in the industry, technological 

advances, and business process improvements and, as with many government

agencies, the FDIC anticipates a high level of retirement in the next five 

years. Amidst such change, the Corporation must seek to maintain employee

morale and positive employee-management relationships. To that end, the 

FDIC formulated a human capital strategy to guide the FDIC through the 

rest of this decade. A key part of its human capital strategy is the Corporate 

Employee Program designed to help create a more adaptable permanent 

workforce and that reflects a more collaborative and corporate approach

to meeting critical mission functions. The challenge now is implementing its 

strategy and monitoring the success of related human capital initiatives and 

programs. Additionally, developing new leaders and engaging in succession 

planning pose a challenge. Finally, in an age of identity theft risks, the FDIC 

needs to maintain effective controls to protect personal employee-related 

information that the Corporation possesses. The appointment of a Chief

Privacy Officer and implementation of a privacy program are positive steps 

toward addressing that challenge. 

Information Technology Management 

The FDIC seeks to maximize its IT resources to improve the efficiency and 

effectiveness of its operational processes. The Corporation's IT transformation

initiative targets three broad areas of challenge: 

● Governance and process improvements that focus on making strategic

alignment a requirement for all IT work. 

● Technical improvements to continue to replace/upgrade critical 

components of the IT infrastructure. 

● Organizational changes to better align IT resources with workload, 

flatten the organizational structure, and improve communication 

with customers. 

130
To address these broad challenges, the FDIC is embracing a capability 

maturity model to improve long-term business performance; employing 

a new system-development life cycle methodology to minimize risk, provide 

more predictable results, and deliver high-quality systems on time and within 

budget; and continuing to enhance its Enterprise Architecture (EA) program 

by identifying duplicative resources/investments and opportunities for internal

and external collaboration to promote operational improvements and costeffective solutions to business requirements. 

The establishment of an integrated and streamlined e-government infrastructure is a key component of the Corporation’s target EA. In this regard, 

the Corporation has initiated a number of major projects designed to improve

internal operations, communications and service to members of the public, 

business and other government entities. The challenge is to ensure that 

such projects are consistent with e-government principles and implementing 

guidance from the Office of Management and Budget, most recently guidance

that is related to the use of earned value management.

Security Management – IT and Physical 

The FDIC recognizes that a robust information security program requires 

an ongoing commitment by the organization. The OIG’s 2005 Federal 

Information Security Management Act evaluation results showed that 

the Corporation had established and implemented controls in all of the 

management control areas assessed that provided either limited or 

reasonable assurance of adequate security over its information resources. 

Still, attention was needed in certain areas such as information security 

risk management, oversight of contractors with access to sensitive data 

and systems, and implementation of an enterprise security architecture. 

Additionally, following Y2K and in light of terrorist-related disruptions and, 

more recently, adverse impacts of natural disasters, the importance of 

corporate disaster recovery and business continuity planning has been 

underscored and elevated to an enterprise-wide level. Such planning 

involves more than the recovery of the technology; it involves the recovery 

of the entire business. The FDIC must be sure that its Emergency 

Preparedness Program provides for the safety and physical security 

of its personnel and ensures that its critical business functions remain 

operational during any emergency. 

Procurement Management 

With corporate downsizing has come, in many instances, increased reliance 

on contracted services and potential increased exposure to risk if contracts 

are not managed properly. Processes and related controls for identifying 

needed goods and services, acquiring them, and monitoring contractors 

after the contract award must be in place and work effectively. Many 

employees with contracting expertise have left the Corporation and contract 

management responsibilities have shifted. Also, a number of new contracting

vehicles and approaches are being implemented. For example, the Corporation

combined approximately 40 IT-related contracts into one contract with 

multiple vendors for a total program value of $555 million over ten years. 

Also, for the first time, it is using a large technical infrastructure contract 

through the General Services Administration (GSA) valued at over $300 million. 

Along with the expected benefits of these contracts come challenges. The 

Corporation has not previously outsourced a procurement process to GSA, 

131
and both new contracts are performance-based, requiring different oversight 

mechanisms and strategies than the time and materials contracts that the 

Corporation has historically used. 

Enterprise Risk Management 

As an integral part of its stewardship of the insurance funds, the FDIC has 

established a risk management and internal control program. The Corporation

has committed to adopting an Enterprise Risk Management approach to 

identifying and analyzing risks on an integrated, corporate-wide basis. Revised

OMB Circular A-123, which became effective for fiscal year 2006, requires 

a strengthened process for conducting management's assessment of the 

effectiveness of internal control over financial reporting. The Circular also 

emphasizes the need for agencies to integrate and coordinate internal control

assessments with other internal control-related activities, and ensure that 

an appropriate balance exists between the strength of controls and the 

relative risk associated with particular programs and operations. 

Design: FDIC/DOA/CSB/Design and Printing Unit

132
Federal

Deposit

Insurance

Corporation

2005

This Annual Report was produced by talented 

and dedicated staff. To these individuals, we would 

like to offer our sincere thanks and appreciation. 

Special recognition is given to the following individuals 

for their contributions:

Sam Collicchio

Pearline Crosland

Jannie F. Eaddy

Terry Ferril

Barbara Glasby

Patricia Hughes

Mia Jordan

Joan Spirtas