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I.
Corporate Fund Financial Statement Results -
Third Quarter 2008
DIF
- For the
nine months ending September 30, 2008, DIF reported a comprehensive
loss of $17.825 billion compared with comprehensive income of
$1.589 billion for the same period last year. This $19.414 billion
year-over-year
decrease was primarily due to a $22.620 billion increase in the
provision for insurance losses, partially offset by a $1.565 increase
in assessment
revenue, a $1.353 billion increase in the unrealized gain on
available-for-sale (AFS) securities and a $473 million realized gain
on the sale of AFS
securities.
- The provision for insurance losses was $22.676 billion for
the nine months ending September 30, 2008. The total provision
consists mainly of the provision for future failures ($11.602 billion)
and the
losses estimated at failure for the 13 resolutions to date ($10.962
billion), the largest of which was the $8.9 billion loss estimate for
the IndyMac
resolution. In contrast, the total provision for insurance losses
for the nine months ending September 30, 2007 was $56 million.
- DIF’s year-to-date
assessment revenue was $1.969 billion as of September 30, 2008, compared
with $404 million for the nine months
ending September 30, 2007. The 2008 revenue consists of: 1) $1.073
billion in collections for the first and second quarters; 2) $890 million
estimated
to be received at the end of the fourth quarter for third quarter
insurance coverage; and 3) $6 million in adjustments recognized in
2008 for fourth
quarter 2007 coverage. Of the $4.7 billion in one-time assessment
credits granted, only $312 million remained as of September 30, 2008.
- Net receivables
from resolutions increased by $12.2 billion to $14.4 billion
during the third quarter 2008. This increase was mostly due to $8.4
billion
in funding provided to the IndyMac conservatorship during the
third quarter and an increase of $1.4 billion in net subrogated accounts
(claims against the receivership) and loans to the receiverships
for
the nine new resolutions over the past three months.
FRF
- FRF’s
net loss was $74 million for the third quarter of 2008 compared to
$14
million net income earned during the second
quarter. The loss was primarily due to the recognition of an
$85.5 million loss related to a Goodwill judgment, partially
offset by $15.9
million in interest earned on U.S. Treasury obligations. In addition
to the above, FRF paid a previously recognized Goodwill judgment
to Fifth Third Bank in the amount of $76.6 million.
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