4

Summary of 2007 Performance Results by Program

The FDIC successfully achieved 44 of the 46 annual performance targets 

established in its 2007 Annual Performance Plan. Two performance targets 

were not applicable. One related to rulemaking for Basel IA and the other related 

to making a decision on pursuit of potential professional liability claims within 

18 months of failure of a financial institution. There were no instances in which 

2007 performance had a material adverse effect on successful achievement 

of the FDIC’s mission or its strategic goals and objectives regarding its major 

program responsibilities.

Key accomplishments by program are highlighted in the table below.

III. Performance Results Summary

Program Area Performance Results

Insurance • Completed substantial modifications to the agency’s information systems in order to implement 

statutory and regulatory changes to risk-based premiums and to track insurance assessment 

credit use and availability for each insured institution.

• Issued proposed and final guidance on how the FDIC will determine the need for limited 

adjustments to risk-based assessment rates for large institutions.

• Completed three studies required by the Federal Deposit Insurance Reform Conforming 

Amendments Act of 2005:

 • An evaluation of further possible changes to the deposit insurance system;

 • An evaluation of the feasibility of using alternatives to estimated insured deposits 

 for designating and calculating the insurance fund reserve ratio; and

 • A review of the Corporation’s policies and practices in establishing contingent loss 

 reserves.

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

• Established a Designated Reserve Ratio of 1.25 percent for 2008, in accordance with the 

provisions of the deposit insurance reform legislation. 

• Issued an Advance Notice of Proposed Rulemaking (ANPR) seeking comments on alternative 

methods for allocating dividends in order to develop a permanent final rule to implement the 

dividend requirements of the Reform Act.

• Provided seminars for bankers, developed a guide on deposit insurance of revocable and 

irrevocable trust accounts and disseminated educational information and tools to consumers 

and bankers on FDIC deposit insurance coverage limits.

• Completed risk assessments for all large insured depository institutions and followed up on all 

identified concerns through off-site review and analysis.

• Conducted and published analysis on the effects of Hurricanes Katrina and Rita.

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

Center for Financial Research Working Papers.

• Successfully managed the three financial institution failures that occurred during 2007. 
4

Program Area Performance Results (continued)

Supervision and • Conducted 2,258 safety and soundness examinations, including required follow-up examinations 

Consumer Protection of problem institutions, within prescribed time frames.

• Conducted 1,773 compliance and Community Reinvestment Act examinations, including 

required follow-up examinations of problem institutions, within prescribed time frames.

• Performed off-site reviews of 1,350 institutions.

• Published Notices of Proposed Rulemaking for Basel II and IA, and continued other analytical 

and preparatory activities related to the implementation of these new capital regulations.

• Completed advanced certification requirements for more than 10 percent of BSA/AML 

subject-matter experts.

• Conducted over 179 outreach and technical assistance events for bankers and community 

groups to promote awareness of community investment opportunities, access to capital, 

knowledge-sharing between the public and private sectors, and wealth building opportunities 

for families.

• Continued to disseminate the award-winning Money Smart financial education curriculum 

in multiple languages, adding 90 Money Smart Alliance members; contacting over 330 schools, 

school systems and government entities regarding the availability of curriculum; reaching 

approximately 72,765 individuals through train-the-trainer sessions and the self-paced computer 

based instruction.

Receivership • Terminated 12 of the 55 (22 percent) failed financial institution receiverships existing at the 

Management beginning of the year.

• Began work on a new Claims Administration System (to be fully implemented in 2009).

• No institution reached the 18-month milestone for professional liability claims investigation 

in 2007.
4

2007 Budget and Expenditures by Program 

(Excluding Investments)

The FDIC budget for 2007 totaled $1.107 billion. Excluding $155 million for 

Corporate General and Administrative expenditures, budget amounts were 

allocated to corporate programs and related goals as follows: $166 million, 

or 15 percent, to the Insurance program; $587 million, or 53 percent, to the 

Supervision and Consumer Protection program; and $199 million, or 18 percent, 

to the Receivership Management program. 

Actual expenditures for the year totaled $1.002 billion. Excluding $128 million 

for Corporate General and Administrative expenditures, actual expenditures 

were allocated to programs as follows: $158 million, or 16 percent, to the 

Insurance program; $589 million, or 59 percent, to the Supervision and 

Consumer Protection program; and $127 million, or 13 percent, to 

the Receivership Management program. 

 

 Budget

 Expenditures

$ 600

 500

 400

 300

 200

 100

 0

 Insurance Supervision and Receivership General 

 Program Consumer Protection Management and

 Program Program Administrative 

 2007 Budget and Expenditures (Support Allocated) 

D o l l a r s i n M i l l i o n s
4

Performance Results by Program and Strategic Goal

2007 Insurance Program Results

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 Number of business days after Provide access to insured Achieved.

institution closings and emerging institution failure that depositors funds in one business day if See pg. 29.

issues. have access to insured funds the failure occurs on a Friday.

 either through transfer of 

 deposits to successor insured Provide access to insured Achieved.

 depository institution or funds in two business days if See pg. 29.

 depositor payout. the failure occurs on any other

 day of the week. 

 Enhancement of FDIC capabilities Review comments received in Achieved.

 to make a deposit insurance response to the 2006 Advance See pg. 30.

 determination for a large-bank Notice of Proposed Rulemaking

 failure. (ANPR) and publish a Notice

 of Proposed Rulemaking

 on Large-Bank Deposit

 Insurance Determination

 Modernization in 2007.

2. Identify and address risks to the Insurance risks posed by large Assess the insurance risks Achieved.

Deposit Insurance Fund (DIF). insured depository institutions. in 100 percent of insured See pg. 40.

 depository institutions and

 adopt appropriate strategies.

 

 Concerns referred for Identify and follow up on Achieved.

 examination or other action. 100 percent of material issues See pg. 40. 

 raised through off-site review

 and analysis.

 Emerging risks to the DIF. Identify and review the Achieved.

 emerging areas of risk, See pgs. 

 including mortgage lending, 14, 15, 20-21.

 hedge funds, commercial real 

 estate lending, derivatives,

 money laundering, illicit

 financial transactions and

 the international operations of

 insured depository institutions.

 

 Address potential risks from Achieved.

 cross-border banking instability See pgs. 

 through coordinated review 20, 21, 28.

 of critical issues and, where 

 appropriate, agreements with 

 key authorities.
2007 Insurance Program Results (continued)

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

Annual Performance Goal Indicator Target Results

3. Disseminate data and analyses Scope and timeliness of Results of research and Achieved.

on issues and risks affecting the information dissemination on analyses are disseminated See pgs. 

financial services industry to bankers, identified or potential issues in a timely manner through 14, 15, 40.

supervisors, the public and other and risks. regular publications, ad hoc

stakeholders. reports and other means.

 Industry outreach activities Achieved.

 are undertaken to inform See pgs. 

 bankers and other stakeholders 21, 26.

 about current trends, concerns 

 and other available FDIC 

 resources.

4. Maintain and improve the deposit Implementation of deposit Implement the new deposit Achieved.

insurance system. insurance reform. insurance pricing system. See pgs. 

 12-13.

 Complete and issue guidance Achieved.

 on the pricing of deposit See pgs. 

 insurance for large banks. 12-13.

 

 Publish an ANPR seeking Achieved.

 comment on a permanent See pgs. 

 dividend system. 13, 40.

 Loss reserves. Enhance the effectiveness of Achieved.

 the reserving methodology by See pgs. 

 applying sophisticated analytical 13, 40.

 techniques to review variances 

 between projected losses and 

 actual losses, and by adjusting 

 the methodology accordingly.

 Fund adequacy. Set assessment rates to Achieved.

 maintain the insurance fund See pg. 40.

 reserve ratio between 1.15 

 and 1.50 percent of estimated 

 insured deposits.
2007 Insurance Program Results (continued)

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

Annual Performance Goal Indicator Target Results

5. Provide educational information Timeliness of responses to Respond to 90 percent of Achieved.

to insured depository institutions insurance coverage inquiries. inquiries from consumers and See pg. 27.

and their customers to help them bankers about FDIC deposit 

understand the rules for determining insurance coverage within 

the amount of insurance coverage time frames established by 

on deposit accounts. policy.

 

 Utility of educational tools Publish a comprehensive and Achieved.

 available to bankers and authoritative resource guide See pgs. 

 consumers. for bankers, attorneys, financial 26-27.

 advisors and similar profes-

 sionals on the FDIC’s rules 

 and requirements for deposit 

 insurance coverage of revocable 

 and irrevocable trust accounts. 

 Conduct a series of national Achieved.

 teleconferences for insured See pg. 26. 

 financial institutions to address 

 current questions and issues 

 relating to FDIC insurance 

 coverage of deposit accounts.

6. Expand and strengthen the FDIC’s Scope of information sharing Undertake global outreach Achieved.

leadership role in providing technical and assistance available to activities to inform and train See pgs. 

guidance, training, consulting services international banking and foreign bank regulators and 28-29.

and information to international deposit insurance entities. deposit insurers.

governmental banking and deposit 

insurance organizations. Foster strong relationships with Achieved.

 international banking regulators See pgs. 

 and associations that promote 28-29.

 sound banking policies in order

 to provide leadership and 

 guidance in global banking 

 supervision and regulations, 

 failure resolution and deposit 

 insurance.
2007 Supervision and Consumer Protection Program Results 

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

Annual Performance Goal Indicator Target Results

1. Conduct on-site risk management Percentage of required One hundred percent of Achieved.

examinations to assess the overall examinations conducted in required risk management See pg. 16.

financial condition, management accordance with statutory examinations (including reviews

practices and policies, and compliance requirements and FDIC policy. of information technology (IT)

with applicable laws and regulations and Bank Secrecy Act (BSA)

of FDIC-supervised depository compliance) are conducted

institutions. on schedule.

2. Take prompt and effective supervisory Percentage of follow-up One hundred percent of Achieved.

action to address issues identified examinations of problem follow-up examinations are See pg. 16.

during the FDIC examination of FDIC- institutions conducted within conducted within 12 months 

supervised institutions that receive required time frames. of completion of the prior

a composite Uniform Financial examination.

Institutions Rating of "4" or "5" (problem

institutions). Monitor FDIC-supervised

insured depository institutions’

compliance with formal and informal

enforcement actions.

3. Increase regulatory knowledge to Certification of BSA/AML An additional 10 percent of Achieved.

keep abreast of current issues related subject-matter experts. BSA/AML subject-matter See pg. 21.

to money laundering and terrorist experts nationwide are

financing. certified under the Association

 of Certified Anti-Money 

 Laundering Specialists 

 certification program. 

4. More closely align regulatory capital Continuation of preparatory Further develop the Basel II Achieved.

with risk in large or multinational activities related to the framework to ensure that it See pgs. 

banks while maintaining capital implementation of the new does not result in a substantial 13-14.

at prudential levels. Basel Capital Accord (Basel II). reduction in risk-based capital

 requirements or significant 

 competitive inequities among 

 different classes of banks. 

 Consider alternative approaches 

 for implementing the Basel 

 Capital Accord.

 Participate in the continuing Achieved.

 analysis of the projected results See pg. 14. 

 of the new capital regime.

 Promote international Achieved.

 cooperation on the adoption See pg. 13.

 of supplemental capital 

 measures in countries that 

 will be operating under Basel II.
4

2007 Supervision and Consumer Protection Program Results (continued)

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

Annual Performance Goal Indicator Target Results

5. More closely align regulatory capital Development of a revised Complete rulemaking on Not

with risk in banks not subject to capital framework proposal Basel IA. Applicable. 

Basel II capital rules while maintaining for institutions not subject See pg. 14.

capital at prudential levels. to Basel II.

6. Ensure that FDIC-supervised Percentage of on-site On-site examinations or off- Achieved.

institutions that plan to operate under examinations or off-site site analyses are performed See pg. 14. 

the new Basel II Capital Accord are analyses performed. for all FDIC-supervised banks 

well positioned to respond to new that intend to operate under

capital requirements. Basel II to ensure that they

 are effectively working toward

 meeting required qualification

 standards.

7. Reduce regulatory burden on the Implementation of regulatory Applicable provisions of the Partially

banking industry while maintaining burden reduction legislation. Financial Services Regulatory Achieved.

appropriate consumer protection Relief Act of 2006 (FSRRA) See pg. 18.

and safety and soundness are implemented in accordance

safeguards. with statutory requirements.

 

 Support is provided to the Achieved.

 Government Accountability See pg. 18.

 Office (GAO), as requested, 

 for studies required under 

 FSRRA.

 

 Utilization of state anti-money State AML assessments of Partially

 laundering (AML) regulatory MSBs are incorporated into Achieved.

 assessments of Money Service FDIC risk management See pg. 21.

 Businesses (MSBs) in FDIC examinations in states where

 risk management examinations. MSB AML regulatory programs 

 are consistent with FDIC risk 

 management standards.

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

Annual Performance Goal Indicator Target Results

8. Conduct CRA and compliance Percentage of examinations One hundred percent of Achieved.

examinations in accordance with conducted in accordance with required examinations are See pg. 16. 

the FDIC’s examination frequency required time frames. conducted within time frames 

policy. established by FDIC policy.
2007 Supervision and Consumer Protection Program Results (continued)

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

Annual Performance Goal Indicator Target Results

9. Take prompt and effective supervisory Percentage of follow-up One hundred percent of Achieved.

action to monitor and address examinations or related follow-up examinations See pg. 16. 

problems identified during compliance activities conducted within or related activities are

examinations of FDIC-supervised required time frames. conducted within 12 months

institutions that receive a “4” or “5” from the date of a formal 

rating for compliance with consumer enforcement action to 

protection and fair lending laws. confirm that the institution 

 is in compliance with the

 enforcement action.

10. Determine the need for changes in Completion of analysis and An analysis is completed Achieved.

current FDIC practices for following evaluation of current practices. for all institutions on the See pg. 17. 

up on actions on significant violations prevalence and scope of

of consumer compliance laws repeat instances of significant

and regulations identified during violations from the previous

examinations of banks for compliance compliance examination.

with consumer protection and fair

lending laws. A determination is made Achieved.

 regarding the need for changes See pg. 17.

 to current FDIC and FFIEC 

 guidance on follow-up 

 supervisory action on significant 

 violations identified during 

 compliance examinations, 

 based on the substance and 

 level of risk posed to consumers

 by these repeat violations.

 

 

11. Effectively meet the statutory Timely responses to written Responses are provided Achieved.

mandate to investigate and respond complaints. to 90 percent of written See pg. 26.

to consumer complaints about FDIC- complaints within time frames

supervised financial institutions. established by policy.
2007 Supervision and Consumer Protection Program Results (continued)

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

Annual Performance Goal Indicator Target Results

12. Provide effective outreach and Number of individuals taking 200,000 additional individuals Achieved.

technical assistance on topics a Money Smart class or using are taught using the Money See pg. 27.

related to the CRA, fair lending, the self-paced curriculum. Smart curriculum.

and community development. 

 120 school systems and Achieved.

 government entities are See pg. 27.

 contacted to make them 

 aware of the availability 

 of Money Smart as a tool 

 to teach financial education 

 to high school students.

 

 Dissemination of information A review of existing risk Achieved.

 that promotes expanded use management and compliance/ See pgs. 

 of insured financial institutions CRA examination guidelines 22-23.

 by segments of the U.S. and practices is completed to

 population that are currently ensure that they encourage

 underserved by those institutions. and support the efforts of

 insured financial institutions 

 to foster economic inclusion, 

 consistent with safe and sound 

 banking practices.

 A pilot project is conducted Not

 with banks near military Achieved.

 installations to provide See pg. 23.

 small-dollar loan alternatives 

 to high-cost payday lending.

 Strategies are developed and Achieved.

 implemented to encourage See pg. 23.

 FDIC-supervised institutions 

 to offer small-denomination 

 loan programs.

 Research is conducted and Achieved.

 findings disseminated on See pgs. 

 programs and strategies to 23-24.

 encourage and promote broader 

 economic inclusion within the 

 nation’s banking system.

 Number of outreach activities 125 technical assistance Achieved.

 conducted, including technical (examination support) efforts See pg. 27.

 assistance activities. or banker/community outreach 

 activities are conducted related 

 to CRA, fair lending, or 

 community development.
5

2007 Receivership Management Program Results 

Strategic Goal: Recovery to creditors of receivership is achieved.

Annual Performance Goal Indicator Target Results

1. Market failing institutions to all known List of qualified and interested Contact all known qualified Achieved.

qualified and interested potential bidders. and interested bidders. See pg. 30.

bidders.

2. Value, manage, and market assets of Percentage of failed institution’s Ninety percent of the book Achieved.

failed institutions and their subsidiaries assets marketed. value of a failed institution’s See pg. 30.

in a timely manner to maximize net marketable assets are 

return. marketed within 90 days 

 of failure.

3. Manage the receivership estate and Timely termination of new Terminate all receiverships Achieved. 

its subsidiaries toward an orderly receiverships. within 90 days of the See pgs. 

termination. resolution of all impediments. 30, 40.

 

 

4. Conduct investigations into all Percentage of investigated For 80 percent of all claim Not

potential professional liability claim claim areas for which a decision areas, a decision is made Applicable.

areas in all failed insured depository has been made to close or to close or pursue claims No claims

institutions and decide as promptly pursue the claim. within 18 months of the within the 

as possible to close or pursue each failure date. 18-month

claim, considering the size and period.

complexity of the institution. See pg. 41.
5

Prior Years' Performance Results

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

(Shaded area indicates no such target existed for that respective year.)

Insurance Program Results 

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

Annual Performance Goals and Targets 2006 2005 2004

1. Respond promptly to all financial institution closings 

and emerging issues.

If the failure occurs on a Friday, the target is one business day. Not Applicable. Not Applicable. Achieved.

 No Failures. No Failures.

If a failure occurs on any other day of the week, the target Not Applicable. Not Applicable. Not Applicable.

is two business days. No Failures. No Failures. All failures occurred

 on a Friday.

Review comments received from the advance notice Achieved.

of proposed rulemaking on Large-Bank Deposit Insurance 

Determination Modernization, consult with stakeholders, 

and make a determination on how to proceed.

2. Identify and address risks to the insurance funds.

Assess the insurance risks in 100 percent of large insured Achieved. Achieved. Achieved.

depository institutions and adopt appropriate strategies.

Identify and follow up on 100 percent of issues raised through Achieved.

off-site review and analysis.

Identify and follow up on 100 percent of referrals. Achieved. Achieved.

Analyses are included in regular publications or as ad hoc reports Achieved.

on a timely basis.

Conduct industry outreach activities aimed at the banking Achieved.

community and industry trade groups to discuss current trends 

and concerns and to inform bankers about available FDIC 

resources.

3. Maintain sufficient and reliable information on insured 

depository institutions.

Implement a modernized Call Reporting process during Not Achieved.

the second Call Reporting period in 2005.

Implement a modernized Call Reporting process Not Achieved.

by December 31, 2004.

4. Disseminate data and analyses on issues and risks affecting 

the financial services industry to bankers, supervisors, 

the public and other stakeholders.

Results of research and analyses are disseminated in Achieved. Achieved.

a timely manner through regular publications, ad hoc reports 

and other means.

Industry outreach activities are undertaken to inform bankers Achieved. Achieved.

and other stakeholders about current trends, concerns and 

other available FDIC resources.
5

Insurance Program Results (continued)

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

Annual Performance Goals and Targets 2006 2005 2004

5. Maintain and improve the deposit insurance system. 

Develop and implement an assessment credit and dividends Achieved.

system and a new deposit insurance pricing system.

Implement deposit insurance reform legislation in accordance Achieved. Not Applicable. Not Applicable.

with statutorily prescribed time frames. Legislation Legislation

 enacted not enacted

 Feb. 8, 2006. in 2004.

Provide information and analysis to Congressional committees Achieved. Achieved.

in support of deposit insurance reform legislation.

Obtain legislative support for a proposed assessment credit Achieved. Achieved.

and rebate system and a new deposit insurance pricing system. 

Enhance the effectiveness of the reserving methodology by Achieved. Achieved. Achieved.

applying sophisticated analytical techniques to review variances 

between projected losses and actual losses, and by adjusting 

the methodology accordingly.

Set assessment rates to maintain the insurance fund reserve Achieved.

ratio between 1.15 and 1.50 percent of estimated insured deposits. 

Set assessment rates to maintain the insurance funds at the Achieved. Achieved.

designated reserve ratio (DRR), or return them to the DRR 

if they fall below it, as required by statute.

When deposit insurance reform legislation is enacted, Not Applicable. Not Applicable.

promulgate rules and regulations establishing criteria for Legislation Legislation

replenishing the Deposit Insurance Fund when it falls below enacted not enacted

the low end of the range. Feb. 8, 2006. in 2004. 

Enhance the working prototype of the integrated fund model Achieved.

for financial risk management.

Develop a working prototype of a new, integrated fund model Achieved.

for financial risk management.

Host conference, present findings from the study and obtain Not Achieved.

feedback from scholars and industry representatives and other 

interested parties.

Implement an FDIC Center for Financial Research with enhanced Achieved.

ties to the academic community.

Implement enhancements to the reserving process and Achieved.

methodology in accordance with recommendations from 

a comprehensive 2003 review.
5

Insurance Program Results (continued)

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

Annual Performance Goals and Targets 2006 2005 2004

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.

Update Insuring Your Deposits (basic deposit insurance brochure Achieved.

for consumers), Your Insured Deposit (comprehensive deposit 

insurance brochure), and EDIE (Electronic Deposit Insurance 

Estimator) on the FDIC Web site to reflect changes resulting 

from enactment of deposit insurance legislation.

Update the consumer version of the EDIE (Electronic Deposit Achieved.

Insurance Estimator) located on the FDIC’s Web site.

Develop and make available to the public an updated Spanish Achieved.

language version of EDIE reflecting deposit insurance reform. 

Develop and make available to the public a Spanish language Achieved.

version of the FDIC’s 30-minute video on deposit insurance 

coverage.

Respond to 90 percent of inquiries from consumers and bankers Achieved.

about FDIC deposit insurance coverage within time frames 

established by policy.

Respond to 90 percent of written inquiries within time frames Achieved.

established by policy.

Develop a CD-ROM and Internet-based resource for bankers Achieved.

on the deposit insurance rules.

Supervision and Consumer Protection Program Results

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

Annual Performance Goals and Targets 2006 2005 2004

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 Achieved. Achieved. Achieved.

(including a review for Bank Secrecy Act (BSA) compliance) are (Excludes BSA.)

conducted on schedule.
Supervision and Consumer Protection Program Results (continued)

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

Annual Performance Goals and Targets 2006 2005 2004

2. Take prompt and effective supervisory action to address 

issues identified during the FDIC examination of FDICsupervised institutions that receive a composite Uniform 

Financial Institutions Rating of “4” or “5” (problem 

institutions.) Monitor FDIC-supervised insured depository 

institutions’ compliance with formal and informal 

enforcement actions.

One hundred percent of follow-up examinations are conducted Achieved. Achieved. Achieved.

within 12 months of completion of the prior examination.

3. Increase regulatory knowledge to keep abreast of current 

issues related to money laundering and terrorist financing.

At least 10 percent of BSA/AML subject-matter experts Achieved.

nationwide are certified under the Association of Certified 

Anti-Money Laundering Specialists certification program. 

4. Increase industry and regulatory awareness of emerging/

high-risk areas.

The number of trained BSA/AML subject-matter experts Achieved.

increased to 300.

Advanced training is completed for all BSA/AML subject-matter Achieved.

experts.

At least one outreach session per region. Achieved.

5. More closely align regulatory capital with risk in large 

or multinational banks. 

Publish a Notice of Proposed Rulemaking (NPR). Achieved. 

Participate in the continuing analysis of the projected results Achieved.

of the new capital regime.

Notice of Proposed Rulemaking (NPR) and associated Achieved.

examination guidance for implementing the new Basel Capital 

Accord are published for comment.

Quantitative Impact Study 4 is completed. Achieved.

6. More closely align regulatory capital with risk in banks 

not subject to Basel II capital rules.

Develop a Notice of Proposed Rulemaking (NPR) for public issuance. Achieved. 

7. Ensure that FDIC-supervised institutions that plan to operate 

under the new Basel Capital Accord are making satisfactory 

progress toward meeting required qualification standards. 

On-site examinations or off-site analyses are performed for all Achieved. Achieved.

FDIC-supervised banks that intend to operate under Basel II 

to ensure that they are effectively working toward meeting 

required qualification standards.
50

Supervision and Consumer Protection Program Results (continued)

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

Annual Performance Goals and Targets 2006 2005 2004

1. Conduct CRA and compliance examinations in accordance 

with the FDIC’s examination frequency policy.

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

within time frames established by FDIC policy.

2. Take prompt and effective supervisory action to monitor 

and address problems identified during compliance 

examinations of FDIC-supervised institutions that received 

a “4” or “5” rating for compliance with consumer protection 

and fair lending laws.

One hundred percent of follow-up examinations or related Achieved. Achieved. Achieved.

activities are conducted within 12 months from the date of 

a formal enforcement action to confirm that the institution 

is in compliance with the enforcement action.

3. Provide effective outreach and technical assistance on topics 

related to the CRA, fair lending, and community development. 

200,000 additional individuals are taught using the Money Smart Achieved. Achieved. Achieved.

curriculum.

125 technical assistance (examination support) efforts or banker/ Achieved. Achieved. Achieved.

community outreach activities are conducted related to CRA, 

fair lending, or community development.

200 additional members are added to the Money Smart Alliance. Achieved. Achieved.

20,000 additional copies of the Money Smart curricula are Achieved. Achieved.

distributed.

4. Effectively meet the statutory mandate to investigate and 

respond to consumer complaints about FDIC-supervised 

financial institutions.

Responses are provided to 90 percent of written complaints Achieved. Achieved. Achieved.

within time frames established by policy.
Receivership Management Program Results

Strategic Goal: Recovery to creditors of receivership is achieved.

Annual Performance Goals and Targets 2006 2005 2004

1. Market failing institutions to all known qualified and 

interested potential bidders.

Contact all known qualified and interested bidders. Not Applicable. Not Applicable. Achieved.

 No Failures. No Failures.

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 Not Applicable. Not Applicable.

marketable assets are marketed within 90 days of failure. No Failures. No Failures. 

Eighty-five percent of book value of a failed institution’s Achieved.

marketable assets are marketed within 90 days of failure. 

3. Manage the receivership estate and its subsidiaries toward 

an orderly termination.

Terminate all receiverships within 90 days of the resolution Achieved.

of all impediments.

Inactivate 75 percent of receiverships managed through the Not Achieved. Achieved.

Receivership Oversight Program within three years of the 

failure date.

4. Conduct investigations into all potential professional 

liability claim areas in 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 Not Applicable. Achieved. Achieved.

or pursue claims within 18 months of the failure date. No Failures. 
5

Program evaluations are designed to improve the operational effectiveness 

of FDIC’s programs and ensure that objectives are met. These evaluations 

are often led by the Office of Enterprise Risk Management and are generally 

interdivisional, collaborative efforts involving management and staff from the 

affected program(s). 

The Corporation's 2007 Annual Performance Plan contained several objectives 

aimed at ensuring that the FDIC would continue to address issues associated 

with implementation of Deposit Insurance Reform and continue its commitment 

to enhance systems security, privacy, and project management efforts. The 

following are the results of the Corporation’s program evaluation activities for 

2007. 

The FDIC issued clarifying guidance on its authority to enforce conditions imposed 

in connection with deposit insurance applications, notices and requests. This 

guidance ensured consistency in reviewing proposals involving a change in bank 

control and the appropriateness of recommending conditions that are similar in 

nature and language to conditions imposed in deposit insurance applications.

The FDIC addressed several remaining Deposit Insurance Reform issues in 2007.

Deposit Insurance Reform directly impacted the business process of assessments 

invoicing and collection, and forced major changes to the Assessment Invoice 

Management System (AIMS) and the FDICconnect interface. Significant 

upgrades were implemented in AIMS including a new pricing scheme, payment 

in arrears process, interim dividend process, one-time credit process, and 

a mechanism for tracking and reporting on the average deposit base.

In the third quarter of 2007, two Post Project Reviews (PPRs) were conducted. 

Their purpose is to improve the Corporation’s future systems development efforts 

by reviewing recently implemented projects. Among the several significant reviews 

completed in 2007 were Phase Four of the Virtual Supervisory Information on 

the Net (ViSION) and the FDIC’s New Financial Environment. PPRs currently 

underway include the Central Data Repository (CDR) and the Corporate Human 

Resources Information System Time and Attendance (CHRIS T&A). Both the CDR 

and CHRIS T&A PPRs are scheduled for completion in the first quarter of 2008.

In the area of systems security, the FDIC focused on mission-critical information 

systems and applications. The Corporation strengthened its procedures for 

securing and disposing of electronic data collected during examinations and 

using encryption to protect confidential/sensitive data. Further, the Corporation 

enacted measures to protect the privacy of personally-identifiable information 

(PII), including requiring mandatory Web-based privacy awareness training for 

employees and contractors, conducting Privacy Impact Assessments (PIAs) on 

systems identified as containing PII, and purging Social Security numbers from 

paper documents and automated systems files in certain program areas. The 

Corporation initiated a major security project during 2007 to review access to 

and to determine the continuing need for existing shared network folders. Those 

folders deemed necessary for ongoing operations will be reviewed for sensitive 

information and flagged with appropriate access rights. The remainder will be 

archived with restricted access. The first step of this project was completed 

in 2007 and resulted in access restrictions to domain users. The project will 

continue and be tracked as a Corporate Performance Objective in 2008.

Program Evaluation
The Corporation developed policies and procedures to ensure consistent 

implementation of and oversight for using Memoranda of Understanding and 

Interagency Agreements. This included expanding their use to promote the 

exchange of technical information with foreign banking authorities, foreign 

central banks and banking regulators. 

Program evaluation activities in 2008 will focus on key corporate issues, 

including addressing privacy issues, shared folder access and security, and 

asset management. Of particular importance in 2008 is upgrading the FDIC’s 

New Financial Environment, an integrated state-of-the-art financial management 

system.