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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

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Chief Financial Officer's (CFO) Report to the Board

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I. Corporate Fund Financial Results - Third Quarter 2010

Deposit Insurance Fund (DIF)

  • For the nine months ending September 30, 2010, the DIF’s comprehensive income totaled $12.9 billion compared with a comprehensive loss of $25.5 billion for the same period last year. This $38.4 billion year-over-year increase was primarily due to a $43.2 billion decline in the provision for insurance losses partially offset by a $4.6 billion decrease in assessments earned, a $462 million decline in interest income from U.S. Treasury obligations, and a $249 million increase in operating expenses.  
  • The provision for insurance losses was a negative $3.3 billion as of September 30, 2010, compared to a positive $39.9 billion for the same period in 2009.  The 2009 provision reflected the significant increase in losses estimated to be incurred by the DIF from 2009 and future failures.  In contrast, the 2010 negative provision is primarily influenced by two factors—lower-than-anticipated loss estimates at time of failure for banks that have failed and leveling off of estimated losses to the DIF from banks expected to fail.
  • During the third quarter of 2010, the Debt Guarantee Program (DGP) incurred $5.3 million in losses related to the default of DGP-guaranteed debt.  To date, three debt issuers have defaulted on guaranteed debt totaling $7.3 million.

FSLIC Resolution Fund (FRF)

  • In August, the Adam Corporation/Group (TACG) paid the FRF $43.2 million, as ordered by an arbitration panel in June, to resolve a dispute over the tax benefit sharing payments due to the FDIC, in its capacity as manager of FRF, under the tax provisions of a 1988 FSLIC Assistance Agreement. Of the amount paid, $42.6 million is included in the line item Recovery of Tax Benefits.  The remaining $560 thousand consists of a supplemental award for reimbursement of fees and expenses and interest on the late payment of the award. The FRF had accrued $42.6 million in June based on the arbitration panel’s decision.

Last Updated 09/16/2011

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