Summary of 201

Performan

Resu lts by 

The FDIC successfully achieved 

43 of the 45 annual performance 

targets established in its 2012 Annual 

Performance Plan. Two targets 

involving capital standards were not 

achieved. There were no instances 

in which 2012 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.

Program Area Performance Results

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 

assessment rate schedules were necessary.

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

♦	 Provided analysis to the FDIC Chairman in August 2012, with recommendations for

follow-up, of possible refinements to the deposit insurance pricing methodology for

banks with assets under $10 billion.

♦	 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.

♦	 Operated the Electronic Deposit Insurance Estimator (EDIE), which had 435,192 user

sessions in 2012.

Performance 

Results 

Summary

III.

Perform R
ANNUAL REPORT 2012

Program Area Performance Results

Supervision and

Consumer Protection

♦	 Conducted 2,585 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.

♦	 Among other releases, issued FILs on effective credit risk management practices for

purchased loan participants and the inappropriate practice of directors and officers

copying and removing financial institution and supervisory records from the institution

in anticipation of litigation or enforcement activity against them.

Receivership

Management

♦ Completed on-site field work for reviews of 100 percent of the loss share and Limited

Liability Corporation (LLC) agreements active as of December 31, 2011, to ensure

full compliance with the terms and conditions of the agreements. Reviewed the fin

review reports and implemented an action plan to address the reports’ findings and

recommendations for 80 percent of the loss-share reviews and 70 percent of the

LLC reviews.

♦ 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 85 percent of all investigated claim areas that were within 18

months of the institution’s failure date.

46 Perfor
2012 Bud get

Expenditu 

Program

(Excluding Investments)

The FDIC budget for 2012 totaled 

$3.3 billion. Budget amounts were 

allocated as follows: $227 million, or 

7 percent, to Corporate General and 

Administrative expenditures; $245 

million, or 7 percent, to the Insurance 

program; $1.0 billion, or 32 percent, 

to the Supervision and Consumer 

Protection program; and $1.8 billion, 

or 54 percent, to the Receivership 

Management program. 

Actual expenditures for the year 

totaled $2.5 billion, and expenditures 

amounts were allocated as follows: 

$174 million, or 7 percent, to 

Corporate General and Administrative 

expenditures; $290 million, or 12 

percent, to the Insurance program; 

$906 million, or 36 percent, to 

the Supervision and Consumer 

Protection program; and $1.1 billion, 

or 45 percent, to the Receivership 

Management program. 

2012 dget an

Dollars in Millions

Insurance

Program

Supervision and

Consumer Protection

Program

Receivership

Management

Program

General and

Administrative

$3,000

Budget Expenditures

$2,500

$2,000

$1,500

$1,000

$500

$0

Perform R
ANNUAL REPORT 2012

Performance Resu lts by Program a

2012 Insurance Progrm Re 

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

#

Annual 

Performance Goal Indicator Target Results

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.

Depositors do not incur any losses on

insured deposits.

No appropriated funds are required to

pay insured depositors.

Achieved.

See pg. 31.

Achieved.

See pg. 31.

Achieved.

See pg. 31.

Achieved.

See pg. 31.

2 Deepen the FDIC’s

understanding of the

future of community

banking.

Completion and

publication of research.

Conduct a nationwide conference on the

future of community banking during the

first quarter of 2012.

Publish by December 31, 2012,

a research study on the future of

community banks, focusing on their

evolution, characteristics, performance,

challenges, and role in supporting local

communities.

Achieved.

See pgs. 26-27.

Achieved.

See pg. 27.

3 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. 45.

Achieved.

See pg. 45.

48 Perfor
2012 Insurance Progrm Re sults (conti

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

#

Annual 

Performance Goal Indicator Target Results

4 Adjust assessment rates,

as necessary, to achieve a

DIF reserve ratio of at least

1.35 percent of estimated

insured deposits by

September 30, 2020.

Updated fund balance

projections and

recommended changes to

assessment rates.

Demonstrated progress in

achieving the goals of the

Restoration Plan.

Analysis of possible

refinements to the

deposit insurance pricing

methodology.

Provide updated fund balance projections

to the FDIC Board of Directors by June 30,

2012, and December 31, 2012.

Recommend changes to deposit insurance

assessment rates to the FDIC Board of

Directors as necessary.

Provide progress reports to the FDIC

Board of Directors by June 30, 2012, and

December 31, 2012.

Provide to the Chairman by September 1,

2012, an analysis, with recommendations

where appropriate, of refinements to the

deposit insurance pricing methodology for

banks with assets under $10 billion.

Achieved.

See pg. 45.

Achieved.

See pg. 45.

Achieved.

See pg. 45.

Achieved.

See pg. 45.

5 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.

Maintain open dialogue with counterparts in

strategically important countries as well as

international financial institutions and partner

U.S. agencies.

Foster strong relationships with international

banking regulators and associations that

promote sound banking supervision and

regulation, failure resolutions, and deposit

insurance practices.

Target capacity building based on the

assessment methodology of the BCBS and

IADI Core Principles for an Effective Deposit 

Insurance System.

Lead and support the Association of

Supervisors of Banks of the America’s

efforts to promote sound banking principles

throughout the Western Hemisphere.

Achieved.

See pgs. 35-36.

Achieved.

See pgs. 33, 35.

Achieved.

See pg. 34.

Achieved.

See pg. 35.

6 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 inquiries from consumers and bankers

about FDIC deposit insurance coverage.

Conduct at least 12 telephone or in-person

seminars for bankers on deposit insurance

coverage.

Achieved.

See pg. 29.

Achieved.

See pg. 30.

Perform R
ANNUAL REPORT 2012

2012 Supervision and Consumer Protec tin Pro

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

#

Annual 

Performance Goal Indicator Target Results

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 all required risk management

examinations within the time frames

prescribed by statute and FDIC policy.

Achieved.

See pg. 19.

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. Ensu

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 follow-up

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. 19.

3 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 all Bank Secrecy Act examinations

within the time frames prescribed by statute

and FDIC policy.

Achieved.

See pg. 19.

4 More closely align

regulatory capital standards

with risk and ensure that

capital is maintained at

prudential levels.

Issuance by the federal

banking agencies of

rules implementing

alternative standards of

creditworthiness for credit

rating in risk-based capital

rules.

Issuance by the federal

banking agencies of

rules to implement

internationally agreed

upon enhancements

to regulatory capital

standards.

Complete by December 31, 2012, final

rules addressing alternative standards of

creditworthiness for credit ratings in the riskbased capital rules.

Complete by December 31, 2012, a final rule

for the Basel III capital standards.

Complete by July 31, 2012, a final rule on

the Market Risk Amendment, including

finalizing alternatives to the use of credit

ratings in accordance with DFA requirements.

Not Achieved.

See pgs. 21-22.

Not Achieved.

See pgs. 21-22.

Achieved.

See pg. 21.

50 Perfor
2012 Supervision and Consumer Protec tin Program Re sult

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

#

Annual 

Performance Goal Indicator Target Results

5 Identify and address risks

in financial institutions

designated as systemically

important.

Issuance of rules and

policy guidance (with

other financial regulatory

agencies) to implement

provisions of DFA

applicable to systemically

important institutions and

markets.

Establishment of institution

monitoring and resolution

planning programs for

systemically important

institutions.

Completed reviews of

resolution plans.

Take all steps necessary to facilitate timely

issuance of implementing regulations and

related policy guidance on proprietary

trading and other investment restrictions

(also known as the Volcker Rule).

Take all steps necessary to facilitate timely

issuance of implementing regulations and

related policy guidance on restrictions on

federal assistance to swap entities.

Take all steps necessary to facilitate timely

issuance of implementing regulations and

related policy guidance on capital and

margin and other requirements for OTC

derivatives.

Take all steps necessary to facilitate timely

issuance of implementing regulations

and related policy guidance on credit risk

retention requirements for securitizations.

Take all steps necessary to facilitate timely

issuance of implementing regulations

and related policy guidance on enhanced

compensation structure and incentive

compensation requirements.

Monitor risk within and across large, complex

firms to assess the potential need for,

and obtain the information that would be

required to carry out, if necessary, an FDIC

resolution of the institution.

Establish by June 30, 2012, with the FRB,

policies and procedures for collecting,

processing, and reviewing for completeness

and sufficiency holding company and insured

depository institution (IDI) resolution plans

submitted under Section 165(d) of DFA.

Complete, with the FRB and in accordance

with prescribed time frames, the review of

holding company and IDI resolution plans

submitted under Section 165(d) of DFA.

Achieved.

See pgs. 22-23.

Achieved.	

See pg. 22.

Achieved.	

See pgs. 22-23.

Achieved.

See pg. 22.

Achieved.

See pg. 22.

Achieved.

See pgs. 16-17.

Achieved.

See pgs. 16-17.

Achieved.

See pgs. 16-17.

Perform R
ANNUAL REPORT 2012

2012 Supervision and Consumer Protec tin Program Re sult

Strategic Goal: Consumers’ rights are protected and 

FDIC-supervised institutions invest in their communities.

#

Annual 

Performance Goal Indicator Target Results

6 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 pg. 19.

7 Take prompt and effective

supervisory action

to address problems

identified during

compliance examinations

of FDIC-supervised

institutions that receive

a composite 3, 4, or 5

rating for compliance with

consumer protection and

fair lending laws. Ensu

that each institution is

fulfilling the requirements

of any corrective program

that has been implemented

and that the actions taken

are effectively addressing

the underlying concerns

identified during the

examination.

Percentage of follow-up

examinations or on-site

visits of 3-, 4-, and 5-rated

institutions conducted

within required time

frames.

Conduct follow-up examinations or on-site

visits for any unfavorably rated (3, 4, or 5)

institution within 12 months of completion of

the prior examination.

Achieved.

See pgs. 19-20.

8 Establish an effective

working relationship

with the new Consumer

Financial Protection Bureau

(CFPB).

Transfer of complaint

processing responsibilities.

Complete the transfer of consumer compliant

processing responsibilities within the purview

of the CFPB within approved time frames.

Achieved.

See pgs. 29-30.

9 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. 29.

52 Perfor
2012 Supervision and Consumer Protec tin Program Re sult

Strategic Goal: Consumers’ rights are protected and 

FDIC-supervised institutions invest in their communities.

#

Annual 

Performance Goal Indicator Target Results

10 Promote economic

inclusion and access to

responsible financial

services through

supervisory, research,

policy, and consumer/

community affairs

initiatives.

Completion of planned

initiatives.

Complete and publish results of the second

biennial National Survey of Unbanked and 

Underbanked Households and Banks’ Efforts

to Serve the Unbanked and Underbanked.

Plan and hold meetings of the Advisory

Committee on Economic Inclusion to gain

feedback and advice on FDIC efforts to

promote inclusion.

Coordinate 25 CRA community forums

nationwide to facilitate community

development opportunities for financial

institutions.

Achieved.

See pg. 25.

Achieved.

See pg. 25.

Achieved.

See pg. 26.

Perform R
ANNUAL REPORT 2012

2012 ecei vership Managemet Pro

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

# Annual Performance Goal Indicator Target Results

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. 31.

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. 31.

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 lossshare agreements, structured sales, or other

legal impediments, within three years of the

date of failure.

Achieved.

See pg. 46.

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 reviews of 100 percent of the

loss-share and LLC agreements active

as of December 31, 2011, 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 80 percent of the

loss-share reviews and 70 percent of the LLC

reviews.

Achieved.

See pg. 46.

Achieved.

See pg. 46.

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. 46.

54 Perfor
Prior Years’ Performa

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 Progrm Re 

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

Annual Performance Goals and Targets 2011 2010 2009

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

issues.

♦ 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.

♦ 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.

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

and analysis. Achieved.

♦	 Identify and analyze existing and emerging areas of risk, including nontraditional and subprime mortgage lending, declines in housing market

values, mortgage-related derivatives/collateralized debt obligations (CDOs),

hedge fund ownership of insured institutions, commercial real estate lending,

international risk, and other financial innovations.

Achieved.

3.	 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.

♦ 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.

4.	 Effectively administer temporary financial stability programs.

♦ 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.

Perform R
ANNUAL REPORT 2012

Insurance Progrm Re sults (conti

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

Annual Performance Goals and Targets 2011 2010 2009

5.	 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.

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

2011, and December 31, 2011.

Achieved.

♦ Recommend changes to deposit insurance assessment rates for the DIF to

the FDIC Board as necessary.

Achieved.

♦ Provide updates to the FDIC Board by June 30, 2011, and December 31,

2011.

Achieved.

6.	 Set assessment rates to restore the insurance fund reserve ratio to the statutory

minimum of at least 1.15% of estimated insured 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.

7.	 Maintain and improve the deposit insurance system.

♦ 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.

♦ 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.

♦ Set assessment rates to maintain the insurance fund reserve ratio between

1.15 and 1.50 percent of estimated insured deposits. Restore to 1.

percent by year-end 2015.

Achieved.

♦ Monitor progress in achieving the restoration plan. Achieved.

8.	 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 seminars/teleconferences

(per quarter in 2009) for bankers.

Achieved.

♦ Respond within two weeks to 95 percent of written inquiries from consumers

and bankers about FDIC deposit insurance coverage.

Achieved.

♦ Conduct at least 12 telephone or in-person seminars for bankers on deposit

insurance coverage.

Achieved. Achieved.

♦ Enter into deposit insurance education partnerships with consumer

organizations to educate consumers.

Achieved.

56 Perfor
Insurance Progrm Re sults (conti

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

Annual Performance Goals and Targets 2011 2010 2009

♦ Expand avenues for publicizing deposits insurance rules and resources to

consumers through a variety of media.

Achieved.

9.	 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 and banking 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 and 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. Achieved.

Perform R
ANNUAL REPORT 2012

Supervision and Consumer Protec tin Pro

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

Annual Performance Goals and Targets 2011 2010 2009

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.

♦ Conduct 100 percent of required risk management examinations within the

time frames prescribed by statute and FDIC policy. Achieved.

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 subseque

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.

♦ Conduct 100 percent of required on-site visits within six months after

implementation of a corrective program.

Achieved.

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.

♦ Complete the transfer of supervisory responsibility for state-chartered thrifts

by July 21, 2011. Achieved.

♦ 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.

4.	 Take prompt and effective supervisory action to address unresolved problems

identified during the FDIC examination of FDIC-supervised institutions that

receive a composite Uniform Financial Institutions Rating of “3”, “4”, or “5”

(problem institution). Monitor FDIC-supervised insured depository institution

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.

5.	 Assist in protecting the infrastructure of the U.S. banking system against terrorist

financing, money laundering, and other financial crimes.

♦ Conduct 100 percent of required Bank Secrecy Act examinations within the

time frames prescribed by statute and FDIC policy. Achieved. Achieved Achieved.

6.	 More closely align regulatory capital with risks and ensure that capital is

maintained at prudential levels.

♦ Complete by June 30, 2011, the final rule addressing capital floors for

banking organizations. Achieved.

♦ 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.

Deferred.

58 Perfor
Supervision and Consumer Protec tin Program Re sult

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

Annual Performance Goals and Targets 2011 2010 2009

♦ Complete by September 30, 2011, the Basel NPR for the new leverage ratio. Deferred.

♦	 Complete by September 30, 2011 the Basel NPR for the new liquidity

requirements. Deferred.

♦	 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).

Deferred.

♦	 Complete by September 30, 2011, the NPR for the Standardized Framework. Deferred.

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

light of recent financial turmoil as information becomes available. Achieved.

♦	 Workings domestically and internationally, develop improvements to

regulatory capital requirements based on the experience of the recent

financial market turmoil.

Achieved.

7.	 More closely align regulatory capital with risk and ensure that capital is

maintained at prudential levels.

♦ 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.

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

revisions to regulatory capital charges for resecuritizations and asset-backed

commercial paper liquidity facilities.

Deferred.

8.	 Identify and address risks in financial institutions designated as systemically

important.

♦ Establish an ongoing FDIC monitoring program for all covered financial

institutions. Achieved.

♦ 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.

9.	 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.

♦ 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).

Achieved.

♦ 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 o

approved recommendations in accordance with the plan.

Achieved.

Perform R
ANNUAL REPORT 2012

Supervision and Consumer Protec tin Program Re sult

Strategic Goal: Consumers’ rights are protected and 

FDIC-supervised institutions invest in their communities.

Annual Performance Goals and Targets 2011 2010 2009

1.	 Conduct on-site CRA and compliance examinations to assess compliance with

applicable laws and regulations by FDIC-supervised depository institution.

♦ Conduct 100 percent of required examinations within the time frames

established by FDIC policy. Achieved.

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

♦ 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.

3.	 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.

♦ Complete by July 21, 2011, the transfer of supervisory responsibility from the

FDIC to the CFPB. Achieved.

♦ Identify the FDIC employees to be transferred to the CFPB and transfer them

in accordance with established time frames. Achieved.

4.	 Scrutinize evolving consumer products, analyze their current or potential impact

on consumers, and identify potentially harmful or illegal practices. Prompt

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.

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

development.

♦ Conduct 50 technical assistance (examination support) efforts or banker/

community outreach activities related to CRA, fair lending, and community

development.

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

♦ 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.

60 Perfor
Supervision and Consumer Protec tin Program Re sult

Strategic Goal: Consumers’ rights are protected and 

FDIC-supervised institutions invest in their communities.

Annual Performance Goals and Targets 2011 2010 2009

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.

7.	 Educate consumers about their rights and responsibilities under consumer

protection laws and regulations.

♦ 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 institutions.

♦ Responses are provided 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 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.

♦ Launch the FDIC Model Safe Accounts Pilot, begin data collection on the

accounts from banks, and start reporting on results of the pilot. Achieved.

♦ 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.

Achieved.

♦ Engage in efforts to support safe mortgage lending in low- and moderateincome communities. Achieved.

♦ 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.

Perform R
ANNUAL REPORT 2012

Receivership Managemet Pro

Strategic Goal: Recovery to creditors of receiverships is achieved.

Annual Performance Goals and Targets 2011 2010 2009

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

bidders.

♦ 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 return.

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

marketed within 90 days of failure. 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. 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

termination.

♦ 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. 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

professional liability claims within 18 months of the failure date of an insured

depository institution.

Achieved. Achieved. Achieved.

5.	 Complete reviews of all loss-share and Limited Liability Corporation (LLC)

agreements to ensure full compliance with the terms and conditions of the

agreements.

♦ 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.

Achieved.

♦ 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.

62 Perfor