301 Moved Permanently
301 Moved Permanently
openresty
 |
Summary
Trends and Results - Second Quarter 2009
| Financial
Results |
Comments |
| I.
Financial Statements |
- Since
the beginning of the Temporary Liquidity Guarantee Program
(TLGP) in October 2008 to June 30, 2009,
the TLGP has $792.0 million in estimated losses upon the
failure of 54 participating institutions in the Transaction
Account Guarantee Program (TAGP) and has incurred no losses
from payment default under the DGP. A graph on page 13 shows
the DIF receivership claims under the TAGP and the estimated
losses by month. Of the $2.1 billion in total receivership
TAGP claims and $792.2 million in total estimated TAGP losses,
one institution comprises the majority of that amount with
$1.5 billion in TAGP claims and $649.8 million in estimated
losses.
- As of June
30, 2009, TLGP has $7.4 billion in cash and cash equivalents.
Note that the TLGP does not currently
expect any new guarantees under the DGP after October 31, 2009
and the TAGP is currently scheduled to expire on December 31,
2009 (Note: There is a notice of proposed rulemaking that presents
an alternative to extend the TAGP until June 30, 2010).
|
| II.
Investments |
- The
DIF investment portfolio’s amortized cost (book value)
decreased by $5.8 billion during the first half of 2009,
and totaled $20.8 billion on June 30, 2009. The decline
was largely the result of funding 45 failed institution
resolutions during the first half of 2009. However, it
should be noted that 20 of these bank and thrift failures
were resolved as loss-share transactions (in which the
acquirers purchased substantially all of the failed institutions’ assets
and the FDIC and the acquirers entered into loss-share
agreements) requiring little or no initial resolution funding,
thus helping to mitigate this quarter’s decline in
the portfolio value. At quarter end, the DIF investment
portfolio yield was 3.89 percent, down 70 basis points
from its December 31, 2008, yield of 4.59 percent. The
yield decline stemmed from several factors, notably the
sale and maturity of generally higher yielding securities,
as well as the DIF portfolio ending the quarter with a
comparatively high overnight investment balance of $3.7
billion earning an ultra-low 0.10 percent yield. The high
quarter-end overnight investment balance was attributable
to the receipt of $2.6 billion in assessments and about
$209.3 million in receivership dividends on June 30, 2009
(as well as other net cash inflows during June).
- Most
conventional Treasury market yields increased substantially
during the second quarter of 2009, with longer-maturity
Treasury securities posting the largest yield increases.
Although Treasury yields remain relatively low in light
of the weak U.S. economy, the higher yields appeared to
reflect a number of factors, including growing sentiment
that the U.S. recession might soon be ending, a reversal
of flight-to-quality trades, and concerns over the increasing
supply of Treasury securities. During the third quarter
of 2009, Treasury yields are expected to continue to trade
within a range around current levels, and to gradually
rise over the course of the rest of the year.
|
| III.
Budget |
- Approximately
$565.0 million was spent in the Ongoing Operations component
of the 2009 Corporate Operating Budget, which was $12.4
million (2 percent) below the budget for the six months
ending June 30, 2009. The Salaries and Compensation expense
category was $10.8 million below the year-to-date budget.
Spending in the Outside Services - Personnel expense category
was $6.3 million greater than the year-to-date budget,
but this amount was more than offset by the net under spending
in all the remaining expense categories
- Approximately
$308.2 million was spent in the Receivership Funding
component of the 2009 Corporate Operating Budget, which
was $116.0 million (27 percent) below the budget for
the six months ending June 30, 2009. The Outside Services
- Personnel expense category was nearly $47.6 million
below the year-to-date budget, and represented 41 percent
of the total Receivership Funding variance. In addition,
the Salaries and Compensation and Travel expense categories
ran $26.4 million and $20.0 million under their year-to-date
budgets, respectively. Collectively, these three expense
categories represented 81 percent of the total year-to-date
budget variance in the Receivership Funding component.
|
|
