55

PROGRAM AREA: Insurance

Performance Results

PERFORMANCE RESULTS SUMMARY

3

Performance

Results Summary

Q Presented updated deposit insurance fund 

projections to the FDIC Board twice, in 

June and October 2010. No changes were 

recommended for assessment rates in June. 

In October, based on updated projections 

and changes to the Restoration Plan target 

required by the Dodd-Frank Act, staff 

recommended that the Board forgo the three 

basis point increase that was scheduled to 

take effect on January 1, 2011. 

Q In October, based on updated projections, 

staff estimated that the reserve ratio will 

become positive by year-end 2011 and will 

reach 1.15 percent by the fourth quarter 

of 2018. The FDIC intends to pursue 

rulemaking next year to implement the 

Dodd-Frank Act requirement that the FDIC 

offset the effect of requiring the reserve ratio 

reach 1.35 percent by September 30, 2020 

rather than 1.15 percent by year-end 2016 

on smaller banks. 

Summary of 2010 

Performance Results 

by Program

The FDIC successfully achieved 30 of the 34 

annual performance targets established in its 2010 

Annual Performance Plan. Three targets were 

deferred due to specific legislation in the DoddFrank Act. One target will be met in 2011. There 

were no instances in which 2010 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.
56 PERFORMANCE RESULTS SUMMARY

PROGRAM AREA: Insurance (continued)

Performance Results

Q Completed reviews of the recent accuracy of 

the contingent loss reserves. 

Q 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.

Q Supported supervision activities related to 

fair lending, enforcement actions, and the 

unbanked and underbanked survey, and 

supported efforts of the Advisory Committee 

on Economic Inclusion (ComE-In). 

Q Began a comprehensive study of the trends 

and events that contributed to the recent 

financial crisis. 

Q Provided senior/executive management 

policy research and analysis in support of 

legislative efforts to reform financial industry 

regulation, as well as support for testimonies 

and speeches. 

Q 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.

Q Conducted over 40 outreach events for 

bankers and community groups to discuss 

risks affecting the financial services industry.

Q Answered 99 percent of written inquiries 

from consumers and bankers about FDIC 

deposit insurance coverage within 14 days.

Q Electronic Deposit Insurance Estimator 

(EDIE) user sessions for 2010 totaled 

442,557.

Q Expanded avenues for publicizing deposit 

insurance rules and resources by:

X Enhancing EDIE to (1) incorporate new 

functionality that allows users to calculate 

coverage for irrevocable trust accounts 

and government accounts and (2) provide 

each FDIC-insured bank the opportunity 

to integrate the EDIE application into 

the bank’s website. 

X Producing an updated version of the 

FDIC Overview Video on Deposit 

Insurance Coverage for consumers and 

new bank employees. 

X Updating the FDIC’s consumer and 

banker brochures on deposit insurance 

coverage.

These resources are available on the FDIC’s 

website with the video also available on the 

FDIC’s YouTube channel and downloadable 

for multimedia applications.

Q Developed computer-based training for 

all FDIC examiners on FDIC deposit 

insurance coverage. The training provides an 

opportunity for all examiners to strengthen 

and enhance their knowledge of deposit 

insurance and the risks associated with 

insured institutions engaging in deposit 

placement activities. 
PERFORMANCE RESULTS SUMMARY 57

PROGRAM AREA: Supervision and Consumer Protection

Performance Results

Q Conducted 2,813 Bank Secrecy Act 

examinations, including required follow-up 

examinations and visitations.

Q Conducted 2,121 IT examinations of 

financial institutions and technology service 

providers.

Q Worked with other federal banking 

regulators and the Basel Committee on 

Banking Supervision to develop proposals to 

strengthen capital and liquidity requirements.

Q Published Final Rulemaking for the Secure 

and Fair Enforcement for Mortgage 

Licensing Act of 2008 and posted the final 

guidance to the FDIC website to implement 

provisions applicable to mortgage loan 

originators employed by insured depositories.

Q Published the Supervisory Insights journal to 

contribute to and promote sound principles 

and best practices for bank supervision. 

Q Among other releases, issued Financial 

Institution Letters (FILs) providing 

guidance on (1) meeting the needs of 

creditworthy small business borrowers; (2) 

identifying, monitoring, and managing 

correspondent concentration risks; (3) 

prudent appraisal and evaluation programs; 

(4) incentive compensation practices; (5) 

golden parachute payments; (6) deposit 

collection and placement activities in FDICsupervised institutions; and (7) registering 

as a municipal advisor under the Securities 

and Exchange Commission’s new rule. In 

addition, 23 disaster relief FILs were issued.

Q Issued industry notification of two 

interagency releases regarding conducting 

cross-border funds transfers and examination 

procedures for compliance with the Unlawful 

Internet Gambling Enforcement Act.

Q Issued joint final Community Reinvestment 

Act (CRA) rule change corresponding to 

statutory requirements relating to student 

loans and activities in cooperation with 

minority- and women-owned financial 

institutions and low-income credit unions. In 

addition, issued final CRA rule that revised 

the definition of “community development” 

in the CRA regulations, to provide favorable 

CRA consideration for loans, investments, 

and services by financial institutions that 

directly support, enable or facilitate eligible 

projects and activities in designated target 

areas of the Neighborhood Stabilization 

Program (NSP) that are approved by 

the Department of Housing and Urban 

Development (HUD).

Q Announced annual adjustment to the asset 

size thresholds used to define small bank, 

small savings associations, intermediate 

small bank and intermediate small savings 

associations under the CRA regulations.

Q Updated interagency guidance on the CRA. 

Jointly issued, with other Federal Financial 

Institutions Examination Council member 

agencies, supervisory guidance on reverse 

mortgage products. 

Q Issued final supervisory guidance on overdraft 

payment programs, which reaffirms existing 

supervisory expectations and provides specific 

guidance with respect to automated overdraft 

payment programs.

Q Issued guidance to assist lenders in meeting 

their compliance obligations under the 

National Flood Insurance Program (NFIP) 

during periods when the statutory authority 

of the Federal Emergency Management 

Agency (FEMA) to issue flood insurance 

contracts under the NFIP lapses; released 

compliance guide for state non-member 

banks wishing to use the model privacy form 

to comply with disclosure requirements 
58 PERFORMANCE RESULTS SUMMARY

PROGRAM AREA: Receivership Management

Performance Results

under the Gramm-Leach-Bliley Act; issued 

financial institutions notice on FEMA 

announcement that Preferred Risk Policy 

eligibility will be extended two years 

beginning January 1, 2011.

Q Issued examination procedures corresponding 

to amendments to Regulation CC 

(Expedited Funds Availability); Regulation 

Z (Truth in Lending) under the Credit 

Card Accountability Responsibility and 

Disclosure Act of 2009, the Higher 

Education Opportunity Act of 2008, and 

the Helping Families Save Their Homes Act 

of 2009; Regulation DD (Truth in Savings); 

Regulation E (Electronic Fund Transfers); the 

Fair Credit Reporting Act (FCRA) Furnisher 

Rule; and the FCRA Risk-Based Pricing 

Rule. 

Q Issued examination procedures for identifying 

Unfair or Deceptive Acts or Practices that are 

violations of Section 5 of the Federal Trade 

Commission Act as well as for reviewing 

third-party relationships and identifying 

associated risks. 

PROGRAM AREA: Supervision and Consumer Protection (continued)

Performance Results

Q Adopted a final rule requiring the largest 

IDIs to adopt mechanisms that would, in the 

event of the institution’s failure, (1) provide 

the FDIC with standard deposit account and 

other customer information and (2) allow the 

placement and release of holds on liability 

accounts, including deposits.

Q Identified and implemented program 

improvements to ensure efficient and 

effective management of the contract 

resources used to perform receivership 

management functions. Implemented 

enhanced reporting capabilities from the 

Automated Procurement System. 

Q Optimized the effectiveness of oversight 

managers and technical monitors by 

restructuring work assignments, providing 

enhanced technical support, and improving 

supervision.

Q 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.

Q Made final decisions for 82 percent of all 

investigated claim areas that were within 18 

months of the institution’s failure date.
PERFORMANCE RESULTS SUMMARY 59

2010 Budget and 

Expenditures by Program 

(Excluding Investments)

The FDIC budget for 2010 totaled 

$4.0 billion. Excluding $198 million, or 

5 percent, for Corporate General and 

Administrative expenditures, budget amounts 

were allocated to corporate programs as follows: 

$205 million, or 5 percent, to the Insurance 

program; $927 million, or 23 percent, to the 

Supervision and Consumer Protection 

program; and $2.7 billion, or 67 percent, to 

the Receivership Management program.

Actual expenditures for the year totaled $3.4 

billion. Excluding $157 million, or 5 percent, 

for Corporate General and Administrative 

expenditures, actual expenditures were allocated 

to programs as follows: $274 million, or 8 

percent, to the Insurance program; $787 

million, or 23 percent, to the Supervision and 

Consumer Protection program; and $2.2 

billion, or 64 percent, to the Receivership 

Management program.

INSURANCE PROGRAM

RECEIVERSHIP

MANAGEMENT PROGRAM

GENERAL 

AND ADMINISTRATIVE

Dollars in Millions

2010 BUDGET AND EXPENDITURES (SUPPORT ALLOCATED)

0

500

1,000

1,500

2,000

2,500

$3,000

SUPERVISION AND CONSUMER

PROTECTION PROGRAM

BUDGET EXPENDITURES
60 PERFORMANCE RESULTS SUMMARY

Performance Results by Program and Strategic Goal

2010 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 

institution closings 

and related emerging 

issues.

Number of business days 

after 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.

There are no depositor losses on 

insured deposits.

No appropriated funds are required to 

pay insured depositors.

Achieved.

See pg. 43.

Achieved.

See pg. 43

Achieved.

See pg. 43.

Achieved.

See pg. 43.

2 Disseminate data and 

analyses on issues 

and risks affecting 

the financial services 

industry to bankers, 

supervisors, the 

public, and other 

stakeholders.

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. 56.

Achieved.

See pg. 56.

3 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.

Update projections and 

recommend changes for 

assessments, as necessary.

Monitor progress in achieving 

the Amended Restoration 

Plan.

Provide updated fund projections to 

the FDIC Board of Directors by June 

30, 2010, and December 31, 2010.

Recommend deposit insurance 

assessment rates for the DIF to the 

FDIC Board as necessary.

Provide updates to the FDIC 

Board by June 30, 2010, and 

December 31, 2010.

Achieved.

See pgs. 18, 55.

Achieved.

See pgs. 18, 55.

Achieved.

See pgs. 18, 55.

4 Expand and 

strengthen the 

FDIC’s participation 

and leadership role 

in supporting robust 

international deposit 

insurance systems.

Scope of information sharing 

and assistance available to 

international governmental 

bank regulatory and deposit 

insurance entities.

Undertake outreach activities to inform 

and train foreign bank regulators and 

deposit insurers.

Foster strong relationships with 

international banking regulators and 

associations that promote sound 

banking supervision and regulation, 

failure resolutions, and deposit 

insurance practices.

Develop methodology for assessing 

compliance with implementation of 

the Core Principles for Effective Deposit 

Insurance Systems.

Achieved.

See pgs. 25-27.

Achieved.

See pgs. 24-27.

Achieved.

See pgs. 24-25.
PERFORMANCE RESULTS SUMMARY 61

2010 Supervision and Consumer Protection Program Results

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.

One hundred percent of required 

risk management examinations are 

conducted on schedule.

Achieved.

See pgs. 27-28.

2 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 

institutions’ 

compliance with 

formal and informal 

enforcement actions.

Percentage of follow-up 

examinations and on-site 

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

institutions conducted within 

required time frames.

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.

One hundred percent of required 

follow-up examinations are conducted 

within 12 months of completion of 

the prior examination to confirm 

that identified problems have been 

corrected.

Achieved.

See pgs. 27-29.

Achieved.

See pgs. 27-29.

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. 

One hundred percent of required Bank 

Secrecy Act examinations are conducted 

on schedule.

Achieved.

See pg. 27.
62 PERFORMANCE RESULTS SUMMARY

#

Annual 

Performance Goal Indicator Target Results

4 More closely align 

regulatory capital 

with risk and 

ensure that capital 

is maintained at 

prudential levels.

Final Basel II Standardized 

Approach.

Controls on banks’ use of 

internal or external ratings.

Revisions to the Market Risk 

Amendment of 1996.

Revisions to regulatory capital 

charges for resecuritizations 

and asset-backed commercial 

paper liquidity facilities.

Complete by December 31, 2010, 

the rulemaking for implementing 

the Standardized Approach for an 

appropriate subset of U.S. banks.

Complete by December 31, 2010, the 

rulemaking for amending the floors 

for banks that calculate their riskbased capital requirements under the 

Advanced Approaches Capital rule to 

ensure capital requirements meet safetyand-soundness objectives.

Complete by December 31, 2010, the 

rulemaking for implementing revisions 

to the Market Risk Amendment of 

1996.

Complete by December 31, 2010, 

the rulemaking for implementing 

revisions to regulatory capital charges 

for resecuritizations and asset-backed 

commercial paper liquidity facilities.

Deferred.

See pg. 55.

Not Achieved.

See pg. 31.

Deferred.

See pg. 55.

Deferred.

See pg. 55.

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

their communities.

#

Annual 

Performance Goal Indicator Target Results

5 Conduct on-site 

CRA and compliance 

examinations to 

assess compliance 

with applicable laws 

and regulations by 

FDIC-supervised 

depository 

institutions.

Percentage of examinations 

conducted in accordance with 

statutory requirements and 

FDIC policy.

One hundred percent of required 

examinations are conducted on 

schedule.

Achieved.

See pgs. 27-28.

6 Take prompt and 

effective supervisory 

action to monitor 

and address 

problems identified 

during compliance 

examinations of 

FDIC-supervised 

institutions that 

receive an overall “3”, 

“4”, or “5” rating 

for compliance with 

consumer protection 

and fair lending laws.

Percentage of follow-up 

examinations or visitations of 

3-, 4-, and 5-rated institutions 

conducted within required 

time frames.

One hundred percent of followup examinations or visitations are 

conducted within 12 months of 

completion of the prior examination to 

confirm that the institution is fulfilling 

the requirements of the corrective 

program and that the identified 

problems have been corrected.

Achieved.

See pgs. 27, 29.

2010 Supervision and Consumer Protection Program Results (continued)

Strategic Goal: FDIC-insured institutions are safe and sound. 
PERFORMANCE RESULTS SUMMARY 63

#

Annual 

Performance Goal Indicator Target Results

7 Effectively investigate 

and respond to 

written consumer 

complaints and 

inquiries about 

FDIC-supervised 

financial institutions.

Timely responses to written 

consumer complaints and 

inquiries.

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 

acknowledgement within two weeks.

Achieved.

See pg. 41.

8 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.

Completion of initiatives to 

facilitate progress in improving 

the engagement of low- and 

moderate-income individuals 

with mainstream financial 

institutions.

Facilitate completion of final 

recommendation on the initiatives 

identified in the Advisory Committee’s 

strategic plan.

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.

See pg. 37.

Achieved.

See pgs. 37-40.

2010 Receivership Management Program Results

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. 43.

2 Value, manage, and 

market assets of 

failed institutions 

and their subsidiaries 

in a timely manner 

to maximize net 

return.

Percentage of failed 

institution’s assets marketed.

Enhancements to contract 

management program.

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).

Implement enhanced reporting 

capabilities from the Automated 

Procurement System.

Ensure that all newly designated 

oversight managers and technical 

monitors receive training in advance 

of performing contract administration 

responsibilities.

Optimize the effectiveness of oversight 

managers and technical monitors 

by restructuring work assignments, 

providing enhanced technical support, 

and improving supervision.

Achieved.

See pg. 43.

Achieved.

See pg. 44.

Achieved.

See pg. 44.

Achieved.

See pg. 58.

2010 Supervision and Consumer Protection Program Results (continued)

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

their communities.
64 PERFORMANCE RESULTS SUMMARY

2010 Receivership Management Program Results (continued)

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

#

Annual 

Performance Goal Indicator Target Results

3 Manage the 

receivership estate 

and its subsidiaries 

toward an orderly 

termination.

Timely termination of new 

receiverships.

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.

See pg. 58.

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.

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, a 

decision is made to close or pursue 

claims within 18 months of the failure 

date.

Achieved.

See pg. 58.

Prior Years’ Performance Results

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 Program Results

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

Annual Performance Goals and Targets 2009 2008 2007

1. Respond promptly to all financial institution closings and 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.

Complete rulemaking/review comments received in response to the 

Advance Notice of Proposed Rulemaking on Large-Bank Deposit Insurance 

Determination Modernization.

Achieved. Achieved.

There are no depositor losses on insured deposits. Achieved. Achieved.

No appropriated funds are required to pay insured depositors. 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. Achieved. Achieved.

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

and analysis.

Achieved. Achieved. Achieved.
PERFORMANCE RESULTS SUMMARY 65

Annual Performance Goals and Targets 2009 2008 2007

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. Achieved. Achieved.

Address potential risks from cross-border banking instability through 

coordinated review of critical issues and, where appropriate, negotiate 

agreements with key authorities.

Achieved. Achieved.

3. Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, supervisors, the 

public, and other stakeholders.

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.

5. 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.

Implement the new deposit insurance pricing system. Achieved.

Review the effectiveness of the new pricing regulations that were adopted to 

implement the reform legislation.

Achieved.

Complete and issue guidance on the pricing of deposit insurance for 

large banks.

Achieved.

Enhance the additional risk measures used to adjust assessment rates for 

large institutions.

Achieved.

Publish an ANPR seeking comment on a permanent dividend system. Achieved.

Develop a final rule on a permanent dividend system. Achieved.

2010 Insurance Program Results (continued)

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
66 PERFORMANCE RESULTS SUMMARY

Annual Performance Goals and Targets 2009 2008 2007

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. Achieved. Achieved.

Set assessment rates to maintain the insurance fund reserve ratio between 1.15 

and 1.50 percent of estimated insured deposits. Restore to 1.15 percent by yearend 2015.

Achieved. Not 

Achieved.

Achieved.

Monitor progress in achieving the restoration plan. Achieved.

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.

Publish a comprehensive and authoritative resource guide for bankers, 

attorneys, financial advisors and similar professionals on the FDIC’s rules 

and requirements for deposit insurance coverage of revocable and irrevocable 

trust accounts. 

Achieved.

Conduct at least three sets of Deposit Insurance Seminar/teleconferences (per 

quarter in 2009) for bankers.

Achieved. Achieved.

Conduct a series of national teleconferences for insured financial institutions 

to address current questions and issues relating to FDIC insurance coverage of 

deposit accounts.

Achieved.

Conduct outreach events and activities to support a deposit insurance education 

program that features the FDIC 75th anniversary theme.

Achieved.

Assess the feasibility of (and if feasible, define the requirements for) a 

consolidated Electronic Deposit Insurance Estimator (EDIE) application for 

bankers and consumers (to be developed in 2009).

Achieved.

Respond to 90 percent of inquiries from consumers and bankers about FDIC 

deposit insurance coverage within time frames established by policy.

Achieved. Achieved.

Respond to 90 percent of written inquiries from consumers and bankers about 

FDIC deposit insurance coverage within two weeks.

Achieved.

Enter into deposit insurance education partnerships with consumer 

organizations to educate consumers.

Achieved.

Expand avenues for publicizing deposits insurance rules and resources to 

consumers through a variety of media.

Achieved.

7. 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.

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 regulations, failure 

resolution and deposit insurance practices. 

Achieved. Achieved. Achieved.

Insurance Program Results (continued)

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
PERFORMANCE RESULTS SUMMARY 67

Supervision and Consumer Protection Program Results

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

Annual Performance Goals and Targets 2009 2008 2007

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. Achieved.

2. Take prompt and effective supervisory action to address problems identified during the FDIC examination of FDICsupervised institutions that receive a composite Uniform Financial Institutions Rating of “4” or “5” (problem 

institution). Monitor FDIC-supervised insured depository institutions’ compliance with formal and informal 

enforcement actions.

One hundred percent of follow-up examinations are conducted within 12 

months of completion of the prior examination.

Achieved. Achieved. Achieved.

3. Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering and 

other financial crimes.

One hundred percent of required Bank Secrecy Act (BSA) examinations are 

conducted on schedule.

Achieved. Achieved.

4. Increase regulatory knowledge to keep abreast of current issues related to money laundering and terrorist financing.

An additional 10 percent of BSA/AML subject-matter experts nationwide are 

certified under the Association of Certified Anti-Money Laundering Specialists 

certification program.

Achieved.

5. More closely align regulatory capital with risk in large or multinational banks while maintaining capital at 

prudential levels. 

Develop options for refining Basel II that are responsive to lessons learned from 

the 2007-2008 market turmoil.

Achieved.

Further develop the Basel II framework to ensure that it does not result 

in a substantial reduction in risk-based capital requirements or significant 

competitive inequities among different classes of banks. Consider alternative 

approaches for implementing the Basel Capital Accord.

Achieved.

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

light of recent financial turmoil as information becomes available.

Achieved. Achieved.

Working domestically and internationally, develop improvements to 

regulatory capital requirements based on the experience of the recent financial 

market turmoil.

Achieved.

Promote international cooperation on the adoption of supplemental capital 

measures in countries that will be operating under Basel II.

Achieved.

Participate in the continuing analysis of the projected results of the new 

capital regime.

Achieved.

6. More closely align regulatory capital with risk in banks not subject to Basel II capital rules while maintaining 

capital at prudential levels.

Finalize a regulatory capital framework based on the Basel II “Standardized 

Approach” as an option for U.S. banks not required to use the new advanced 

approaches.

Achieved.

Complete rulemaking on Basel IA. Not 

Applicable.
68 PERFORMANCE RESULTS SUMMARY

Annual Performance Goals and Targets 2009 2008 2007

7. Ensure that FDIC-supervised institutions that plan to operate under the new Basel II Capital Accord are well 

positioned to respond to the new capital requirements.

Performed on-site examinations or off-site analyses of all FDIC-supervised 

banks that have indicated a possible intention to operate under Basel II 

to ensure that they are effectively working toward meeting required 

qualification standards.

Not 

Applicable.

Achieved.

8. Reduce regulatory burden on the banking industry while maintaining appropriate consumer protection and safety 

and soundness safeguards.

Complete and evaluate options for refining the current risk-focused approach 

used in the conduct of BSA/AML examinations to reduce the burden they 

impose on FDIC-supervised institutions.

Achieved.

Applicable provisions of the Financial Services Regulatory Relief Act of 2006 

(FSRRA) are implemented in accordance with statutory requirements.

Partially 

Achieved.

Support is provided to the Government Accountability Office (GAO), as 

requested, for studies required under FSRRA.

Achieved.

State AML assessments of Money Service Businesses (MSB) are incorporated 

into FDIC risk management examinations in states where MSB AML 

regulatory programs are consistent with FDIC risk management standards.

Partially 

Achieved.

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

their communities.

1. Conduct CRA and compliance examinations in accordance with the FDIC’s examination frequency policy.

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

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 visitations are conducted 

within 12 months from the date of a formal enforcement action to confirm 

compliance with the prescribed enforcement action.

Not 

Achieved.

Achieved. Achieved.

3. Determine the need for changes in current FDIC practices for following up on significant violations of consumer 

compliance laws and regulations identified during examinations of banks for compliance with consumer protection 

and fair lending laws.

Complete a review of the effectiveness of the 2007 instructions issued on 

the handling of repeat instances of significant violations identified during 

compliance examinations.

Achieved.

An analysis is completed for all institutions on the prevalence and scope 

of repeat instances of significant violations from the previous compliance 

examination.

Achieved.

A determination is made regarding the need for changes 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.

Achieved.

Supervision and Consumer Protection Program Results (continued)

Strategic Goal: FDIC-supervised institutions are safe and sound.
PERFORMANCE RESULTS SUMMARY 69

Annual Performance Goals and Targets 2009 2008 2007

4. Scrutinize evolving consumer products, analyze their current or potential impact on consumers and identify potentially 

harmful or illegal practices. Promptly 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. Achieved.

Develop and implement new supervisory response programs across all 

FDIC-supervised institutions to address potential risks posed by new 

consumer products.

Achieved.

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

Conduct 50 in 2009 (125 in prior years) technical assistance (examination 

support) efforts or banker/community outreach activities related to CRA, fair 

lending, and community development.

Achieved. Achieved. 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.

Release a “Young Adult” version of the Money Smart curriculum. Achieved.

Distribute at least 10,000 copies of the “Young Adult” version of Money Smart. Achieved.

Analysis of survey results is disseminated within six months of completion of 

the survey through regular publications, ad hoc reports, and other means.

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. Achieved.

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

120 school systems and government entities are contacted to make them aware 

of the availability of Money Smart as a tool to teach financial education to high 

school students.

Achieved.

A review of existing risk management and compliance/CRA examination 

guidelines and practices is completed to ensure that they encourage and support 

the efforts of insured financial institutions to foster economic inclusion, 

consistent with safe and sound banking practices.

Achieved.

A pilot project is conducted with banks near military installations to provide 

small-dollar loan alternatives to high-cost payday lending.

Not 

Achieved.

Strategies are developed and implemented to encourage FDIC-supervised 

institutions to offer small-denomination loan programs.

Achieved.

Research is conducted and findings disseminated on programs and strategies 

to encourage and promote broader economic inclusion within the nation’s 

banking system.

Achieved.

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. Achieved.

Supervision and Consumer Protection Program Results (continued)

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

their communities.
70 PERFORMANCE RESULTS SUMMARY

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 2009 2008 2007

Open 27,000 new bank accounts. Achieved.

Initiate new small-dollar loan products in 32 financial institutions. Achieved.

Initiate remittance products in 32 financial institutions. Achieved.

Reach 18,000 consumers through financial education initiatives. 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 consumer complaints about FDIC-supervised financial institutions.

Responses are provided to 95 percent (90 percent for 2007-08) of written 

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.

Receivership Management Program Results

Strategic Goal: Recovery to creditors of receiverships is achieved.

Annual Performance Goals and Targets 2009 2008 2007

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. Achieved. 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 all receiverships within 90 days of the resolution of all impediments. Achieved. Achieved.

Terminate at least 75 percent of new receiverships within three years of the date 

of failure.

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 claims 

within 18 months of the failure date.

Achieved. Achieved. Not 

Applicable. 

No claims 

within the 

18-month 

period.
PERFORMANCE RESULTS SUMMARY 71

Program Evaluation

Program evaluations are designed to improve 

the operational effectiveness of the FDIC’s 

programs and ensure that objectives are met. 

These evaluations are often led by the Office of 

Enterprise Risk Management (OERM) and are 

generally interdivisional, collaborative efforts 

involving management and staff from the 

affected program(s).

The Corporation’s 2010 Annual Performance Plan 

contained several objectives aimed at ensuring 

that the FDIC would continue to address key 

corporate issues, including continuing work on 

issues relating to contract oversight management, 

anticipated increases in bank failures, and 

continuous improvements to the FDIC’s core 

business functions.

During 2009, in direct response to challenges 

associated with the financial crisis, the FDIC 

created six internal organizations and working 

groups to address areas of increased risk to ensure 

that both the FDIC’s core businesses and new 

responsibilities were being managed as effectively 

as possible. During 2010, OERM and other areas 

of the Corporation continued this work. The six 

initiatives are tied to: 1) Legacy Loans; 2) Systemic 

Resolution Authority; 3) Temporary Liquidity 

Guarantee Program; 4) Loss-Share Agreements; 5) 

Contract Management Oversight; and 6) Resource 

Management. For each initiative, key issues and 

risks were identified, action plans and performance 

metrics were developed as necessary, and the 

Chairman was briefed on at least a monthly 

basis. In many cases, enhancements to operating 

procedures and automated systems of support 

were made as a direct result of this heightened 

management attention. Significantly, all 

identified program needs have been coordinated 

with those persons responsible for planning, 

budgeting, staffing, and ensuring the adequacy of 

infrastructure support.

These and other actions were taken in addition 

to evaluations that are part of the Corporation’s 

ongoing efforts to seek continuous improvements 

in its programs and operations. Some of these 

2010 initiatives included: reviews of financial 

management and controls governing contract 

operations; the sampling and testing of transaction 

accuracy and controls; improved communication 

between our examination and receivership 

activities; and continued scrutiny of systems 

development efforts to support our new and/or 

expanded business activities.

Program evaluation activities in 2011 will 

focus on key corporate issues, including 

implementation of the Dodd-Frank Act, 

corporate reorganization, control testing, and 

continuous improvements to the FDIC’s core 

business functions.