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I.
Corporate Fund Financial Statement Results -
Fourth Quarter 2005
BIF
The BIF fund balance was $35.5 billion as of December 31, 2005, compared to
$34.8 billion at year-end 2004, which reflects a year-over-year increase of
approximately 2.0 percent.
- BIF’s
comprehensive income (net income plus current period unrealized
gains/losses on AFS securities) was $680 million in 2005, which is substantially
lower
than the $1.004 billion reported in 2004. This 32 percent reduction
is primarily due to an increase in unrealized losses of $280 million
on
AFS securities, lower recoveries of prior years’ provisions for
insurance losses of $143 million, an increase in operating expenses
of $24 million, and a decrease in assessment revenues of $42 million,
offset
by an increase of $161 million in interest revenue on U.S. Treasury
obligations.
- BIF’s
provision for insurance losses was a negative $138 million in
2005 compared to a negative $281 million at year-end 2004. This lower
recovery
of prior years’ provisions for insurance losses resulted largely
from a significantly smaller reduction in 2005 in the estimated
losses for anticipated failures.
SAIF
The SAIF fund balance was $13.1 billion as of December 31, 2005, compared to
$12.7 billion at year-end 2004, which reflects a year-over-year increase
of approximately 3.2 percent.
- SAIF’s comprehensive income was $409 million in 2005 compared
to $480 million in 2004. This 15 percent reduction is due to an increase in
unrealized losses on AFS securities of $94 million and lower recoveries of
prior years’ provisions for insurance losses of $50 million that were
partially offset by a $73 million increase in interest revenue on U.S. Treasury
obligations.
- SAIF’s provision for insurance losses was a negative
$22 million in 2005 compared to a negative $72 million in 2004.
This lower recovery of prior years’ provisions for insurance losses
resulted from a significantly smaller reduction in 2005 in the
estimated loss for the Superior receivership.
FRF
- The FRF paid $625 million as a result of judgments and settlements
in seven Goodwill cases during 2005, compared to $5 million for one Goodwill
case in 2004. These payments by FRF were funded by the U.S. Treasury through
a separate, indefinite appropriation.
- The
FRF also paid two Guarini settlements in 2005 totaling
$76.8 million and established a contingent liability
of $257 million at year-end 2005 for the remaining
four Guarini cases. Unlike the Goodwill cases, the
U.S. Treasury does not fund these payments.
- During
2005, the FRF received approximately $46 million in tax benefit
recoveries from FSLIC assistance agreements and going forward
could realize additional recoveries from these agreements of
between $144 million to $224 million. Three tax benefit cases
were terminated in 2005 and five such cases remain active as
of December 31, 2005.
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