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I. Corporate Fund Financial Statement Results -
Fourth Quarter 2008
Deposit Insurance Fund (DIF)
- The
accounting for the transactions of the TLGP will have no impact
to the DIF. Any losses incurred by the DIF will be recovered
from fees collected from participating institutions in the TLGP
as well as any special assessments imposed on all insured depository
institutions. Fees received/accrued by FDIC as a result of the
program will be held in reserve (deferred revenue) and used solely
for the payment of any losses arising from the program. However,
when losses are recognized the amount will be charged to expense
and an equal amount of deferred revenue will be recognized as
revenue to cover the loss.
- For 2008,
the DIF’s comprehensive loss was $33.524 billion compared to
comprehensive income of $2.248 billion during 2007. This year-over-year
decrease of $35.772 billion was primarily due to a $40.131 billion
increase in the provision for insurance losses offset in part
by a $2.322 billion increase in assessment revenue; a $1.766
billion increase
in the unrealized gain on available-for-sale securities; and
a $775 million increase in the realized gain on sale of securities.
- The provision
for insurance losses was $40.226 billion in 2008. The total provision
consists mainly of the provision for future failures ($22.244
billion) and the losses estimated at failure for the 25 resolutions
occurring
during 2008 ($17.873 billion), the largest of which was the $10.725
billion estimated loss for the IndyMac resolution.
- Assessment
revenue was $2.965 billion for 2008 compared with $643 million
for 2007. This increase of $2.322 billion was mostly due to the
reduction in the amount of one-time assessment credits available
for use. In 2008, $1.446 billion in one-time credits offset $4.410
billion in gross assessment premiums; whereas in the previous
year, $3.088 billion in one-time credits were applied against
$3.731 billion in gross assessment premiums.
- Net
receivables from resolutions increased by $1.352 billion to $15.766
billion during the fourth quarter of 2008. This increase was
mostly due to an increase of $2.360 billion in net subrogated
accounts (claims against the receivership) for the 12 failures
in the fourth quarter and $1 billion in funding provided to the
IndyMac conservatorship. Partially offsetting these increases
was a $1.825 billion increase in the allowance for loss on the
IndyMac resolution.
FSLIC Resolution Fund (FRF)
- FRF’s
net loss was $63 million for the fourth quarter of 2008 compared
to a $74 million net loss during the prior quarter. The net loss
was primarily due to the recognition of $87 million in losses
for three Goodwill judgments, offset by $17 million in tax benefit
recoveries.
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