ANNUAL REPORT 2012

2 FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Deposit Insurance Corporation

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

May 31, 2013

Dear Sir,

In accordance with:

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

♦ the Chief Financial Offi cers Act of 1990, Public Law 101-576, 

♦ the Government Performance and Results Act of 1993 (as amended) and the GPRA Modernization Act of 2010,

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

♦ the Reports Consolidation Act of 2000,

the Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2012 Annual Report (also referred to as the 

Performance and Accountability Report), which includes the audited fi nancial statements of the Deposit Insurance Fund 

(DIF) and the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution Fund (FRF). 

In accordance with the Reports Consolidation Act of 2000, the FDIC assessed the reliability of the performance data 

contained in this report. No material inadequacies were found, and the data are considered to be complete and reliable. 

Based on internal management evaluations, and in conjunction with the results of independent fi nancial statement audits, 

the FDIC can provide reasonable assurance that the objectives of Section 2 (internal controls) and Section 4 (fi nancial 

management systems) of the Federal Managers’ Financial Integrity Act of 1982 have been achieved, and that the FDIC 

has no material weaknesses. Additionally, the U.S. Government Accountability Offi ce did not identify any signifi cant 

defi ciencies in the FDIC’s internal controls for 2012. We are committed to maintaining effective internal controls 

corporate-wide in 2013. 

Sincerely,

Martin J. Gruenberg

Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives
ANNUAL REPORT 2012 3

Table of Contents

Message from the Chairman ........................................................................................................5

Message from the Chief Financial Offi cer ..................................................................................11

I. Management’s Discussion and Analysis ................................................................................13

 The Year in Review ...............................................................................................................13

 Overview .................................................................................................................................................................................... 13

 Insurance ................................................................................................................................................................................... 13

 Activities Related to Systemically Important Financial Institutions .................................................................................. 16

 Supervision and Consumer Protection .................................................................................................................................. 18

 Resolutions and Receiverships .............................................................................................................................................. 30

 International Outreach ............................................................................................................................................................ 33

 Effective Management of Strategic Resources ......................................................................................................... 36

II. Financial Highlights...............................................................................................................41

Deposit Insurance Fund Performance ....................................................................................................................................... 41

Corporate Operating Budget ......................................................................................................................................................... 43

Investment Spending ..................................................................................................................................................................... 44

III. Performance Results Summary .............................................................................................45

Summary of 2012 Performance Results by Program ................................................................................................................. 45

2012 Budget and Expenditures by Program .............................................................................................................................. 47

Performance Results by Program and Strategic Goal ............................................................................................................... 48

Prior Years’ Performance Results ................................................................................................................................................ 55

IV. Financial Statements and Notes ...........................................................................................63

Deposit Insurance Fund (DIF) ..................................................................................................................................................... 64

FSLIC Resolution Fund (FRF) ...................................................................................................................................................... 85

Government Accountability Offi ce’s Audit Opinion .................................................................................................................. 94

Management’s Response ............................................................................................................................................................. 102

Overview of the Industry ............................................................................................................................................................. 104

V. Corporate Management Control ........................................................................................107

Management Report on Final Actions ....................................................................................................................................... 108

VI. Appendices .........................................................................................................................111

A. Key Statistics ............................................................................................................................................................................ 111

B. More About the FDIC .............................................................................................................................................................. 128

C. Offi ce of Inspector General’s Assessment of the Management and Performance Challenges Facing the FDIC ........ 136
INSURING DEPOSITS • EXAMINING INSTITUTIONS • 

MANAGING RECEIVERSHIPS • EDUCATING CONSUMERS

In its unique role as deposit insurer of banks and savings associations, and 

in cooperation with the other state and federal regulatory agencies, the 

FDIC promotes the safety and soundness of the U.S. fi nancial system and 

insured depository institutions by identifying, monitoring, and addressing 

risks to the Deposit Insurance Fund (DIF).

The FDIC promotes public understanding and the development of sound 

public policy by providing timely and accurate fi nancial and economic 

information and analyses. It minimizes disruptive effects from the failure 

of fi nancial institutions. It assures fairness in the sale of fi nancial products 

and the provision of fi nancial services.

The FDIC’s long and continuing tradition of excellence in public service 

is supported and sustained by a highly skilled and diverse workforce that 

continuously monitors and responds rapidly and successfully to changes in 

the fi nancial environment. 

At the FDIC, we are working together to be the best.