Mission

The Federal Deposit Insurance Corporation

(FDIC) is an independent agency created by

the Congress that maintains the stability 

and public confidence in the nation’s financial

system by insuring deposits, examining 

and supervising financial institutions, and

managing receiverships.

In its unique role as deposit insurer of banks

and savings associations, and in cooperation

with the other state and federal regulatory

agencies, the Federal Deposit Insurance

Corporation (FDIC) promotes the safety and

soundness of the U.S. financial system and the

insured depository institutions by identifying,

monitoring and addressing risks to the deposit

insurance funds.

The FDIC promotes public understanding 

and the development of sound public policy

by providing timely and accurate financial

and economic information and analyses. It

minimizes disruptive effects from the failure

of banks and savings associations. It assures

fairness in the sale of financial products and

the provision of financial 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 financial environment.
Vision

The FDIC is a leader in developing and 

implementing sound public policies, identifying

and addressing new and existing risks in 

the nation’s financial system, and effectively 

carrying out its insurance, supervisory, and

receivership management responsibilities.

Integrity 

FDIC employees adhere to the highest ethical

standards in the performance of their duties

and responsibilities.

Competence

The FDIC maintains a highly skilled, dedicated

and diverse workforce.

Teamwork 

FDIC employees work cooperatively with 

one another and with employees in other 

regulatory agencies to accomplish the

Corporation’s mission.

Effectiveness 

The FDIC responds quickly and successfully to

identified risks in insured financial institutions

and in the broader financial system.

Financial Stewardship

The FDIC acts as a responsible fiduciary, 

consistently operating in an efficient and

cost-effective manner on behalf of insured

financial institutions and other stakeholders.

Fairness

The FDIC treats all employees, insured 

financial institutions, and other stakeholders

with impartiality and mutual respect.

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Values

The FDIC and its employees have a long and continuing tradition of distinguished public service.

Six core values guide FDIC employees as they strive to fulfill the Corporation’s mission and vision:

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February 14, 2005

Sirs,

In accordance with:

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

● the Chief Financial Officers Act of 1990, Public Law 101-576, and

● the Government Performance and Results Act of 1993,

the Federal Deposit Insurance Corporation is pleased to submit its 

2004 Annual Report.

Sincerely,

Donald E. Powell

Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives

Federal Deposit Insurance Corporation

550 17th St. NW Washington DC, 20429 Office of the Chairman
Message from the Chairman 4

Message from the Chief Financial Officer 6

I. Management’s Discussion and Analysis 8

The Year in Review 8

Insurance 8

Supervision and Consumer Protection 12

Receivership Management 19

Effective Management of Strategic Resources 20

II. Financial Highlights 24

Deposit Insurance Fund Performance 24

Operating Expenses 24

Investment Spending 25

III. Performance Results Summary 28

Summary of 2004 Performance Results by Program 28

2004 Budget and Expenditures by Program 30

Performance Results by Program and Strategic Goal 31

Multi-Year Performance Trend 36

Program Evaluation 41

IV. Financial Statements and Notes 42

Bank Insurance Fund (BIF) 42

Savings Association Insurance Fund (SAIF) 60

FSLIC Resolution Fund (FRF) 80

GAO’s Audit Opinion 94

Management’s Response 99

Overview of the Industry 100

V. Management Controls 102

Material Weaknesses 102

High Vulnerability Issues 103

Matters for Continued Monitoring 103

Internal Controls and Risk Management Program 105

VI. Appendixes 106

A. Key Statistics 106

B. More About the FDIC 118

C. Office of Inspector General’s Assessment of the 

Management and Performance Challenges Facing the FDIC 126