A n n u a l 

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 fund.

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.
R e p o r t 2 0 0 7

Vision

The FDIC is a leader in developing and 

implementing sound public policies, identifying 

and addressing risks in the nation’s financial 

system, and effectively and efficiently 

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.

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:
Federal Deposit Insurance Corporation

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

February 15, 2008

Dear Sir/Madam,

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, 

• the Government Performance and Results Act of 1993,

• 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 2007 Annual Report

(also referred to as the Performance and Accountability Report), which includes the audited 

financial statements of the Deposit Insurance Fund and the Federal Savings and Loan Insurance 

Corporation Resolution Fund. 

In accordance with the Reports Consolidation Act of 2000, the FDIC completed an assessment 

of 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 

financial statement audits, the FDIC can provide reasonable assurance that the objectives 

of Section 2 (internal controls) and Section 4 (financial 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 Office did not 

identify any significant deficiencies in the FDIC’s internal controls for 2007. We are 

committed to maintaining our effective internal controls corporate-wide in 2008. 

Sincerely,

Sheila C. Bair

Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives
Message from the Chairman 4

Message from the Chief Financial Officer 10

I. Management’s Discussion and Analysis 12

The Year in Review 12

 Insurance 12

 Supervision and Consumer Protection 15

 Receivership Management 29

 Effective Management of Strategic Resources 31

II. Financial Highlights 34

Deposit Insurance Fund Performance 34

Corporate Operating Budget Spending 36

Investment Spending 39

III. Performance Results Summary 40

Summary of 2007 Performance Results by Program 40

2007 Budget and Expenditures by Program 42

Performance Results by Program and Strategic Goal 43

Prior Years' Performance Results 51

Program Evaluation 57

IV. Financial Statements and Notes 59

Deposit Insurance Fund (DIF) 60

FSLIC Resolution Fund (FRF) 80

Government Accountability Office’s Audit Opinion 94

Management’s Response 99

Overview of the Industry 100

V. Management Control 102

Enterprise Risk Management 102

Material Weaknesses 102

Management Report on Final Actions 103

VI. Appendices 106

A. Key Statistics 106

B. More About the FDIC 116

C. Office of Inspector General’s Assessment of

 the Management and Performance Challenges Facing the FDIC 124