Minority and Women Outreach
The FDIC relies on contractors to help meet
its mission to maintain stability and public
confidence in the U.S. financial system. In 2010,
the FDIC continued to host “Doing Business
with the FDIC” and “Representing the FDIC”
seminars. The FDIC conducted four seminars
nationwide and reached out to Minority and
Women Owned Businesses (MWOBs) and
Minority and Women Owned Law Firms
(MWOLFs) to inform them about the FDIC’s
procurement and legal opportunities. In addition,
FDIC staff served as panel members, exhibitors,
and active participants in numerous events
sponsored by trade and community organizations,
and provided valuable information to attendees
regarding the FDIC’s procurement process.
As a result of this additional outreach, the FDIC
has registered approximately 2,200 MWOBs in
an internal database. This database was used in
addition to the newly developed ARON Database
System (ARON) for generating source lists.
ARON was developed exclusively for the FDIC
in an effort to retrieve comprehensive lists of
competitive MWOBs for potential solicitations.
The system retrieves contractors’ information
directly from the Central Contractor Registration
(CCR) System. Firms that want to do business
with the government must be registered in the
CCR System.
In 2010, the FDIC awarded 2,573 contracts, of
which 522 contracts, or 20 percent, were awarded
to MWOBs. The total value of contracts awarded
was $2.6 billion, of which $641 million, or 24
percent, was awarded to MWOBs, compared to
32 percent for all of 2009. Lower award values in
areas where there was strong MWOB participation
in conjunction with increases in award dollars in
areas where there was no MWOB participation
resulted in an overall decrease in dollars awarded
to MWOBs in 2010. In addition, the FDIC paid
outside counsel $87 million for legal services,
of which $8 million, or 10 percent, was paid to
MWOLFs, compared to 3 percent for all of 2009.
As a result of the number of bank failures for
2010, the FDIC took a proactive effort to target
minority and women investors to create awareness,
promote synergy, and provide information
regarding purchasing failed bank assets and
acquiring and/or creating minority depository
institutions. As previously stated, the FDIC developed and jointly
sponsored eight Asset
Purchaser, Investor, and Minority Depository
Institution (AIM) seminars.
In 2011, the FDIC will continue to encourage and
foster diversity and the inclusion of minorities and
women in its asset sales program as it continues to
liquidate assets from failed financial institutions.
The FDIC will explore an investor match program
to connect large and small investors interested
in bidding on the FDIC’s structured sales. In
addition, the FDIC will conduct workshops to
provide technical assistance to small investors
and asset managers on how to participate in
structured sales.
Protecting Insured Depositors
With the increase in failure activity in 2010, the
FDIC’s focus on protecting insured depositors
of failed institutions was of critical importance.
Confidence in the banking system hinges on
deposit insurance, and no insured deposits went
unpaid in 2010.
The FDIC’s ability to attract healthy institutions
to assume deposits and purchase assets of failed
banks and savings associations at the time of
failure minimizes the disruption to customers and
allows assets to be returned to the private sector
immediately. Assets remaining after resolution are
liquidated by the FDIC in an orderly manner, and
the proceeds are used to pay creditors, including
depositors whose accounts exceeded the insurance
limit. During 2010, the FDIC paid dividends of
$5 million to depositors whose accounts exceeded
the insured limit(s).
Professional Liability and Financial
Crimes Recoveries
FDIC staff works to identify potential claims
against directors, officers, accountants, fidelity
bond carriers, appraisers, attorneys, and other
professionals who may have contributed to
the failure of an IDI. Once a claim is deemed
meritorious and cost effective to pursue, the
FDIC initiates legal action against the appropriate
parties. During the year, the FDIC recovered
approximately $78 million from these professional
liability claims/settlements. In addition, as part
of the sentencing process for those convicted of
criminal wrongdoing against institutions that
later failed, a court may order a defendant to pay
restitution or to forfeit funds or property to the
receivership. The FDIC, working in conjunction
with the U.S. Department of Justice, collected
$6 million in criminal restitutions and forfeitures
during the year. At the end of 2010, the FDIC’s
caseload was composed of 153 professional
liability lawsuits (up from 89 at year-end 2009)
and 2,750 open investigations (up from 1,878)
at year-end 2009. There also were 4,895 active
restitution and forfeiture orders (up from 3,379
at year-end 2009). This includes 247 FSLIC
Resolution Fund orders, i.e., orders inherited
from the Federal Savings and Loan Insurance
Corporation on August 10, 1989, and orders
inherited from the Resolution Trust Corporation
on January 1, 1996.
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