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I.
Corporate Fund Financial Results - Fourth Quarter 2009
Deposit Insurance Fund (DIF)
- For
2009, the DIF’s comprehensive loss was $38.1 billion compared
to a comprehensive loss of $35.1 billion during 2008. This year-over-year
change of $3.0 billion was primarily due to a $15.9 billion increase
in the provision for insurance losses, a $4.0 billion increase
in the unrealized loss on U.S. Treasury investments, and a $1.4
billion decrease in interest earned on U.S. Treasury obligations,
partially offset by a $14.8 billion increase in assessment revenue
and a $3.4 billion increase in other revenue.
- Other revenue
was $3.4 billion for 2009 primarily due to guarantee termination
fees of $2.3 billion and the collection of debt issuance surcharges
under
the Temporary Liquidity Guarantee Program (TLGP) of $872 million.
In connection with the termination of the loss-share agreement
with Bank
of America and Citigroup, the FDIC received a termination fee
of $92 million from Bank of America and recognized revenue of
$2.2 billion
for the carrying amount of the Citigroup trust preferred securities
received as consideration for the guarantee.
- The provision
for insurance losses was $57.7 billion in 2009. The total provision
consists mainly of the increase in the provision for future failures
($20.0 billion) and the losses estimated at failure for the 140
resolutions occurring during 2009 ($35.6 billion).
- On December 30,
2009, the FDIC collected prepaid assessments of $45.7 billion for the
coverage period of October 2009 through December 2012. The DIF recognized
the amount collected as both an asset (cash) and an offsetting liability
(unearned revenue). Hereafter, the DIF will recognize revenue for the
regular risk-based assessments quarterly as it is earned.
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