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2001 Annual Report |
Chairman's Statement |
FDIC Chairman At year-end 2001, the insurance funds under management by the Federal Deposit Insurance Corporation totaled $41.4 billion. We earned $2.7 billion in revenue including approximately $83 million in assessment income from insured institutions. Ninety percent of insured institutions paid nothing for deposit insurance last year. Three banks and one thrift failed in 2001. Total assets for these failed institutions totaled $2.2 billion; most of these were the assets of Superior Bank, FSB. These four failures are estimated to cost the funds $445 million. The Corporation's total budgeted spending in 2001 was $1.044 billion. Eighty-six percent of this was spent on business line expensessupervision, consumer protection, insurance, research, resolutions and receiverships. We had 6,167 staff on board at year-end. The staff performed 2,566 safety and soundness examinations and 2,180 compliance examinations. In 2001, receivership asset sales and collections from assets in liquidation totaled $256 million. The recovery from asset sales was $169 million, for a recovery rate of 66 percent. In 2001, our receiverships paid $462 million in dividends, all but $16 million of which went to the insurance funds. Asset sales and collections from the Superior conservatorship totaled $507 million in 2001. Mortgage loan sales achieved a 98 percent recovery rate and securities sales achieved a 102.7 percent recovery rate. We were good, we were competent, and we did a fine jobjust as the Corporation has done for every year since 1933. But times are changing. Competence today is one thing. We must be ready to meet the challenges of the future and we are not there yet. We will be, though. I have committed my Chairmanship to achieving this goal. I believe history will see 2001 as a setup year for the FDIC. We spent a lot of time working on initiatives that will bear fruit in 2002 and beyond. Id like to share a few of them. We began a comprehensive review of the Corporation from top to bottom. We scrutinized our organizational chart, our staffing levels, and our cultureall with an eye toward becoming a more efficient, effective and relevant organization. We talked a lot about deposit insurance reform. It is our number one external priority and we made our case to anyone who would listen. We implemented a number of supervision process reforms. These were designed to focus our resources on risks in the banking system and set the stage for more ambitious reforms next year. We designed and vetted a compliance examination structure that will serve as the management model for a more focused and customer-friendly supervision and consumer affairs division. We developed a great financial education toolMoney Smartthat will help the least fortunate among us to learn about managing their finances. We worked on improving our technology platformsas prelude to modernizing, with our fellow regulators, the way we collect, manage, store and publish institution data. We did a better job using the Internetadding a feature to our Web page that allows users to search for unclaimed funds from failed financial institutions and transmitting the Preliminary Bank Earnings Report via satellite Webcast. Many of our asset sales were conducted online. And in the sad wake of September 11, we began efforts to review and update our business continuity and disaster recovery procedures. This is no small list of chores. We worked hard on all these priorities. We must continue these efforts and more if we are to become a vital and relevant voice in the banking sector. Now we have to build on this agendaand, indeed, we must pursue a more ambitious oneif we are to make the Corporation an effective and efficient agent of change. Here are some things we have to do: We must continue our efforts to convince the Congress and the banking industry that deposit insurance reform is workable, necessary and in the national interest. We must succeed with our leadership and management initiatives at the FDIC to ensure we are well positioned to be a relevant and innovative voice on the issues that matter to banks, the Congress, the policymaking community and the depositors of America. We must succeed to show that government agencies can change, that they can become more efficient, and that they can do more with less. We must work to ensure our supervision processes are rational, efficient, effective, and clearly communicated. We should do our job well and impose as little burden as possible on the institutions we supervise. We must ensure our supervision structure going forward breaks down the old cultural barriers between safety and soundness and compliance and that the combined division is both effective and responsive to the needs of the industry and the demands of the economy. We must expand our financial education initiative beyond Money Smart and commit ourselves to the goal of forming partnerships in all 50 states to ensure more of low- and moderate-income Americans learn from our curriculum and join the financial mainstream. We must strengthen our technology infrastructurefrom security to customer serviceto ensure we pass every test we take in the coming year. And we must press on with our data innovationsboth at home and in the interagency process. We must continue our efforts to provide FDIC information and analysis to the publicreleasing it as it becomes available, and when it is most relevant. And, sadly, we must demonstrate our capabilities to move our business operations and carry on at a moments notice should disaster strike again. This is my to-do list for the year. But Im not terribly worried because I am not alone. Everywhere I go, I tell people that the FDIC is full of wonderful people who work hard, love their families and love their country. That is the truth. I have asked our staff to rise to the challenge, as they did during the banking crisis a decade ago, and help us accomplish these goals. I know they can make us a better and more effective organization. There will be naysayers. There always are. Some will question our direction. Some will question this or that initiative. And some will question my leadership. I cannot do anything about these folks. What I can do is get up every morning, come to the FDIC, and work hard trying to make this wonderful institution even better than it has ever been. That is my job. Every day, as I meet our employees, I am learning just what an honor it is to work here. These are our goals. Every day, as we make incremental progress, I am finding we have both the resources and the will to accomplish them. And this is our challenge. Every day, I hope the employees of the FDIC and every one of our stakeholdersthe industry, the Congress, the American peoplewill scrutinize us and provide guidance so we can lead the packand then some. We are ready to accomplish this mission. I know we will. Donald E. Powell |
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Last Updated 10/28/2002 | communications@fdic.gov |