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Executive
Summary - Fourth Quarter 2009
The
attached report highlights the Corporation’s financial activities
and results for the period ending December 31, 2009.
- The
year-end financial results presented in this report are unaudited.
We expect our external auditor, the U. S. Government Accountability
Office, to conclude their audits of the FDIC financial statements
in April.
- For
the fourth quarter of 2009, the Deposit Insurance Fund (DIF)
balance decreased by $12.6 billion (153 percent) to negative
$20.9 billion. This decrease was primarily due to a $17.8 billion
increase in the provision for insurance losses, which was partially
offset by a $3.1 billion increase in assessment revenue. Although
the fund balance decreased in the fourth quarter, the unrestricted
cash and cash equivalents increased by $45.5 billion, primarily
due to the collection of prepaid assessments.
- During
the fourth quarter of 2009, the FDIC was named receiver for
45 failed institutions. The combined assets at inception for
these institutions totaled approximately $64.9 billion with
a total estimated loss of $10.0 billion. The corporate cash
outlay during the fourth quarter for these failures was $7.8
billion. The FDIC entered into loss-share agreements with the
acquiring institution for 34 of these receiverships, with expected
loss-share payments due to the acquirers of approximately $6.4
billion over the length of the agreements.
- For the
year ending December 31, 2009, expenditures from the Corporate
Operating Budget and the Investment Budget ran below budget by
9 percent ($226.8
million) and 2 percent ($0.1 million), respectively. The variance
with respect to the Corporate Operating Budget was primarily
the result of lower spending for contractual services in the Receivership
Funding
component of the budget. For the information technology projects
that make up the Investment Budget, detailed quarterly reports
are
provided
separately to the Board by the Capital Investment Review Committee.
On
the pages following is an assessment of each of the three major finance
areas: financial statements, investments, and budget.
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