Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 66293 

1 73 FR 61598 (Oct. 16, 2008). 

2 74 FR 9564 (Mar. 4, 2009). 

3 12 U.S.C. 1817(b)(3)(E)(ii), as amended by the 

Helping Families Save Their Homes Act of 2009, 

Public Law 111–22, § 204(b), 123 Stat. 1632, 1649. 4 74 FR 51062 (Oct. 2, 2009). 

5Public Law 111–203, § 334(a), 124 Stat. 1376, 

2709 (to be codified at 12 U.S.C. 1817(b)(3)(B)). 

6Public Law 111–203, § 334(d), 124 Stat. 1376, 

2709 (to be codified at 12 U.S.C. 1817(d)). 

7Public Law 111–203, § 334(e), 124 Stat. 1376, 

2709 (to be codified at 12 U.S.C. 1817(e)). 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

Adoption of Federal Deposit Insurance 

Corporation Restoration Plan 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notice. 

On October 7, 2008, the FDIC 

established a Restoration Plan for the 

Deposit Insurance Fund (the DIF or the 

fund) to return the DIF to its statutorily 

mandated minimum reserve ratio of 

1.15 percent within five years.1 In 

February 2009, given the extraordinary 

circumstances facing the banking 

industry, the FDIC amended its 

Restoration Plan to extend the 

restoration period from five to seven 

years.2 Congress amended the statute 

governing establishment and 

implementation of a restoration plan in 

May 2009 to allow the FDIC up to eight 

years to return the DIF reserve ratio to 

1.15 percent, absent extraordinary 

circumstances.3 The FDIC amended its 

Restoration Plan consistent with the 

statutory change and, pursuant to the 

amended Restoration Plan, adopted a 

uniform 3 basis point increase in initial 

assessment rates effective January 1, 

2011, to meet the Restoration Plan’s goal 

of returning the reserve ratio to 1.15 

percent by the end of 2016.4

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (DoddFrank) requires the FDIC to set a 

designated reserve ratio of not less than 

1.35 percent for any year.5 Dodd-Frank 

also requires the FDIC to take ‘‘such 

steps as may be necessary’’ to increase 

the level of the DIF to 1.35 percent of 

estimated insured deposits by 

September 30, 2020.6 Under DoddFrank, the FDIC is required to offset the 

effect of requiring that the reserve ratio 

reach 1.35 percent by September 30, 

2020, rather than 1.15 percent by the 

end of 2016, on insured depository 

institutions with total consolidated 

assets of less than $10,000,000,000.7

The FDIC has updated its income, loss 

and reserve ratio estimates and has 

concluded that expected losses for the 

period 2010 through 2014 are lower 

than were projected in June 2010. The 

FDIC now projects that losses during 

this period will be $52 billion, rather 

than $60 billion as projected in June. 

Given this lower loss projection, the 

FDIC estimates that the fund reserve 

ratio will reach 1.15 percent by the 

fourth quarter of 2018, even without the 

3 basis point uniform increase in initial 

assessment rates presently scheduled to 

take effect January 1, 2011. Since DoddFrank provides that the FDIC is to offset 

the effect of the requirement that the 

reserve ratio reach 1.35 percent by 

September 30, 2020 on insured 

depository institutions with total 

consolidated assets of less than 

$10,000,000,000, initial assessment rates 

applicable to all insured depository 

institutions need be set only high 

enough to reach 1.15 percent by the 

statutory deadline of September 30, 

2020; the mechanism for reaching 1.35 

percent by the statutory deadline of 

September 30, 2020, and the manner of 

offset can be determined separately. 

The FDIC has concluded that given 

the continuing stresses on the earnings 

of insured depository institutions and 

the additional time afforded to reach the 

reserve ratio required by Dodd-Frank, 

that it will forego the uniform 3 basis 

point increase in initial assessment rates 

scheduled to take effect on January 1, 

2011. The FDIC intends to pursue 

further rulemaking in 2011 regarding 

the method that will be used to assess 

insured depository institutions with 

total consolidated assets of 

$10,000,000,000 or more to offset the 

effect of the statutory requirement that 

the reserve ratio reach 1.35 percent by 

September 30, 2020, rather than 1.15 

percent by the end of 2016. 

Therefore, the FDIC adopts the 

following Restoration Plan, which 

supersedes the Amended Restoration 

Plan adopted on September 29, 2009: 

1. The period of the Restoration Plan 

is extended to September 30, 2020. 

2. The FDIC will forego the uniform 

3 basis point increase in initial 

assessment rates scheduled to take effect 

on January 1, 2011. 

3. The FDIC plans to maintain the 

current schedule of assessment rates for 

all insured depository institutions. 

4. The FDIC will pursue further 

rulemaking in 2011 regarding the 

method that will be used to reach 1.35 

percent by September 30, 2020 and 

offset the effect on insured depository 

institutions with total consolidated 

assets of less than $10,000,000,000 of 

the statutory requirement that the 

reserve ratio reach 1.35 percent by 

September 30, 2020, rather than 1.15 

percent by the end of 2016. 

5. At least semiannually hereafter, the 

FDIC will update its loss and income 

projections for the fund and, if needed, 

will increase assessment rates, following 

notice-and-comment rulemaking if 

required. The FDIC may also lower 

assessment rates following notice-andcomment rulemaking if required. 

6. Institutions may continue to use 

assessment credits (for regular quarterly 

assessments and for any special 

assessments) without additional 

restriction (other than those imposed by 

law) during the term of the Restoration 

Plan, since the few remaining credits 

should have only a minimal effect on 

fund revenue. 

7. This Restoration Plan shall be 

implemented immediately. 

Dated at Washington, DC, this 19th day of 

October, 2010. 

By order of the Board of Directors. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2010–27042 Filed 10–26–10; 8:45 am] 

BILLING CODE 6714–01–P 


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