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A N N U A L R E P O R T
2 FDIC 2010 ANNUAL REPORT

March 31, 2011

Dear Sir,

In accordance with:

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

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

Q the Government Performance and Results Act of 1993,

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

Q the Reports Consolidation Act of 2000,

The Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2010 Annual Report (also 

referred to as the Performance and Accountability Report), which includes the audited financial statements 

of the Deposit Insurance Fund (DIF) 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 2010. We are committed to maintaining effective internal controls corporate-wide in 2011.

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

Federal Deposit Insurance Corporation

550 17th Street NW, Washington, DC 20429 Office of the Chairman
FDIC 2010 ANNUAL REPORT 3

Table of Contents

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

Message from the Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . . . 10

Dodd-Frank Wall Street Reform and Consumer Protection Act . . . . . . . . . . . . . 13

1. Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . 17

The Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Supervision and Consumer Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Resolutions and Receiverships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Effective Management of Strategic Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

2. Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Deposit Insurance Fund Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Investment Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

3. Performance Results Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Summary of 2010 Performance Results by Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

2010 Budget and Expenditures by Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Performance Results by Program and Strategic Goal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Prior Years’ Performance Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Program Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

4. Financial Statements and Notes . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Deposit Insurance Fund (DIF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

FSLIC Resolution Fund (FRF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Government Accountability Office’s Audit Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Management’s Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

Overview of the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

5. Management Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

Enterprise Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

Material Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

Management Report on Final Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

6. Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

A. Key Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

B. More About the FDIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

C. Office of Inspector General’s Assessment of the Management and 

Performance Challenges Facing the FDIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162