301 Moved Permanently
301 Moved Permanently
openresty
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I.
Corporate Fund Financial Results - Second Quarter 2009
Deposit Insurance Fund (DIF)
- For the six months
ending June 30, 2009, DIF’s
comprehensive loss totaled $6.9 billion compared with a comprehensive
loss of $7.2 billion for the same period last year. This $288.0
million reduction in the year-over-year loss was primarily due
to a $10.6 billion increase in assessment revenue partially offset
by a $7.5 billion increase in the provision for insurance losses
and a $3.0 billion decrease in the unrealized gain on available-for-sale
securities (AFS). The continued sale of U.S. Treasury investments
to fund resolution activity also contributed to the change in the
comprehensive loss as the realized gain from investment sales rose
by $657.5 million while the interest income earned from investments
declined by $817.5 million. Other revenue also increased by $374.5
million, largely attributable to the collection of debt issuance
surcharges under the TLGP.
- Assessment revenue was $11.7 billion as of June 30, 2009 compared
with $1.1 billion for the comparable period in 2008. A major reason
for this $10.6 billion increase was the recognition of a $5.6 billion
receivable
for the special assessment to be collected on September 30, 2009.
In regular assessment activity, DIF collected approximately $2.6 billion
for first quarter 2009 insurance coverage on June 30, 2009 and
recognized
a $3.4 billion receivable for second quarter insurance coverage
to be collected on September 30, 2009. Year-to-date regular assessment
revenue
totaled approximately $6.0 billion compared with approximately
$1.1 billion for the same period in 2008. Major factors contributing
to this increase
in regular assessment revenue year-over-year include changes to
the risk-based assessment regulations, ratings downgrade of many institutions
(which
pushed them into higher assessment rate categories), the decline
of the one-time credit available for use, and a larger assessment base.
- The provision
for insurance losses was $18.3 billion as of June 30, 2009 compared
with $10.7 billion for the same period in 2008. The total provision
consists mainly of the provision for future failures (approximately
$8.0 billion) and the losses estimated at resolution for the
45 failures occurring in 2009 (approximately $10.3 billion).
- The year-to-date
unrealized losses on AFS securities were $1.3 billion as of June 30,
2009 compared with unrealized gains
of $1.7 billion
for the comparable period in 2008. Most of the year-to-date unrealized
gain reported in June 2008 resulted from a one-time adjustment
of $1.6 billion for the transfer of the held-to-maturity securities
to the AFS
category. For year-to-date 2009, the unrealized losses reflect
a combination of: 1) increasing market yields (which lower
the securities’ unrealized
gains, thus resulting in an income statement unrealized loss
for the period); and 2) the sale of a significant number of AFS securities
(the
latter of which were offset by the year-to-date 2009 realized
gains
of $657.5 million).
- Liabilities due to resolutions were $11.1 billion at June 30,
2009 – an increase of $5.7 billion during the second quarter. This
liability represents the amount due to the receiver for assets transferred
to the acquirer or bridge bank for use in funding deposits. Two resolutions
during the quarter resulted in most of this increase – Bank United,
FSB ($3.1 billion) and Silverton Bank ($1.3 billion).
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