Skip Header
U.S. flag

An official website of the United States government

Strategic Plans

2020 Annual Performance Plan

Last Updated: May 31, 2020

Receivership Management Program

The FDIC also promotes public confidence and maintains stability in the nation’s financial system through its receivership management program. When an IDI fails, the FDIC is appointed receiver. In its receivership capacity, the FDIC assumes responsibility for efficiently achieving maximum recoveries from the disposition of receivership assets and the pursuit of amounts due to the failed bank. These funds are then distributed to the receivership’s creditors under the priorities set by law.

Prior to failure, the FDIC analyzes the assets and liabilities of a failing institution to determine the institution’s current market value. Using this information, the FDIC works to market and sell the institution in whole or in part to qualified institutions or investors. The FDIC markets failed institutions broadly, ensuring that all qualified parties are given an opportunity to present bids. Bids are evaluated and compared to the cost of liquidation to determine the least costly resolution.

In the event an assuming institution cannot be found, the FDIC will use other resolution transactions including a Payout (where insured funds are paid directly to depositors), a Deposit Insurance National Bank (DINB), or a Bridge Bank. The "Recordkeeping for Timely Deposit Insurance Determination" rule (12 C.F.R. part 370 of the FDIC’s Rules and Regulations) requires each IDI with two million or more deposit accounts to configure its IT system to calculate the insured and uninsured amount in each deposit account. This requirement will assist in the potential resolution of a large institution and ensure the timely payment of insured funds to depositors.

All assets, or any remaining assets not purchased by an assuming institution are retained in the receivership for final disposition. Various strategies are then used to sell the assets as quickly and efficiently as possible to maximize recovery to the DIF.

Additionally, FDIC staff identify and investigate claims against directors, officers, and other professionals, and pursue those claims on behalf of the receivership when the claims are both meritorious and expected to be cost effective. The FDIC also ensures that legitimate claims against the receivership are satisfied fairly. The FDIC notifies likely claimants of the failed institution and provides them instructions on how to file a timely claim. Once the FDIC receives and analyzes the information, valid claims are paid under the priorities set by law. The FDIC terminates the receivership after the disposition of all assets and the payment of eligible creditors.

In addition to resolutions administered using FDI Act authority, the FDIC may be called upon to carry out the orderly liquidation of certain large, systemically important financial institutions under Title II of the Dodd-Frank Act. However, this is only in circumstances when failure in bankruptcy, the statutory preferred option, would threaten U.S. financial stability. In 2020, the FDIC will continue to pursue planning and operational readiness initiatives to bolster its ability to administer, if necessary, the resolution of large financial institutions, including those designated as systemically important.

The following table depicts the strategic goal, strategic objectives, and annual performance goals for the Receivership Management Program.

Strategic Goal

Strategic Objectives

Annual Performance Goals

Resolutions are orderly and receiverships are managed effectively.

Receiverships are managed to maximize net return and terminated in an orderly and timely manner.


Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return. (5.1-1)


Manage the receivership estate and its subsidiaries toward an orderly termination. (5.1-2)

Potential recoveries, including claims against professionals, are investigated and pursued if deemed to be meritorious and expected to be cost-effective.


Conduct investigations into all potential professional liability claim areas for all failed IDIs and decide as promptly as possible to close or pursue each claim, considering the size and complexity of the institution. (5.2-1)

Resolution of the failure of a large, complex financial institution is carried out in an orderly manner in accordance with statutory mandates


Ensure the FDIC’s operational readiness to administer the resolution of large financial institutions, including those designated as systemically important. (5.3-1)



STRATEGIC GOAL 5:
Resolutions are orderly and receiverships are managed effectively.


STRATEGIC OBJECTIVE 5.1

Receiverships are managed to maximize net return and terminated in an orderly and timely manner.

Annual Performance Goal 5.1-1

Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return.

Indicator and Target

  1. Percentage of the assets marketed for each failed institution
    • For at least 95 percent of insured institution failures, market at least 90 percent of the book value of the institution’s marketable assets within 90 days of the failure date (for cash sales) and within 120 days of that date if the pool of similar assets is of sufficient size to bring to market (for structured sales).

Means and Strategies

Operational Processes (initiatives and strategies):  After the resolution of the failed institution, the FDIC collects and manages any remaining assets in a cost-effective manner to maximize recoveries and preserve value until the assets can be marketed. The FDIC uses the Standard Asset Valuation Estimation (SAVE) methodology, valuation contractors, and financial advisors to value most of the assets of a failed institution and to inform the marketing and disposition plan. The failed institution’s assets are grouped into pools and potential asset purchasers are given the opportunity to view sales information before submitting bids online.

Generally, by quickly returning the assets of a failed institution to the private sector, the FDIC maximizes net recoveries and minimizes disruption to the local community. Most of any remaining assets are marketed within 120 days after an insured institution fails.

The SAVE methodology uses standard assumptions and market information to ensure consistency in the valuation of assets. The valuation process, methodology, and assumptions used to value assets are continually reviewed and, when necessary, updated. The FDIC will continue to update and refine its marketing strategies to market assets as quickly and efficiently as possible.

Human Resources (staffing and training): For 2020, the FDIC has 350 permanent authorized positions to carry out its resolutions and receivership management functions. If resolution activities increase, the FDIC may add nonpermanent staff and contractor resources to help with the additional workload.

Contractors are used as necessary to manage and sell the assets of failed institutions. The FDIC has comprehensive policies, procedures, and internal controls that cover every phase of the contracting process.

Consistent with the requirements of the Dodd-Frank Act, the FDIC will continue to identify and address barriers to the participation of underrepresented groups, including minority- and women-owned businesses and law firms, in FDIC contracting and asset purchase opportunities.

Information Technology:  The FDIC uses technology extensively to make its asset management/servicing, sales strategies, and other business processes more efficient and to keep pace with changing market and emerging business practices.

Verification and Validation

Progress in meeting this annual performance goal is tracked through established management reporting processes.

2019 Performance Results

The FDIC successfully met the performance target for this annual performance goal in 2019. This annual performance goal and its associated performance indicator and target are unchanged for 2020.


Annual Performance Goal 5.1-2

Manage the receivership estate and its subsidiaries toward an orderly termination.

Indicator and Target

  1. Timely termination of new receiverships
    • Terminate at least 75 percent of new receiverships that are not subject to loss-share agreements, structured transactions, or other legal impediments within three years of the date of failure.

Means and Strategies

Operational Processes (initiatives and strategies):  The oversight and prompt termination of a receivership preserves value for uninsured depositors and other receivership claimants by reducing overhead and other holding costs. Each receivership is monitored on an ongoing basis by staff and a receivership oversight committee. The committee meets monthly to review and evaluate the progress that has been made in removing the impediments preventing receivership terminations.

To be eligible for termination, a receivership must be free of all impediments. These impediments may include contractual liabilities, offensive or defensive litigation, potential representation and warranty asset sale claims, open employee benefit plans, open subsidiary corporations where articles of dissolution have not been approved, and known or potential environmental contamination liabilities. Once the FDIC has disposed of all of the assets of the receivership, resolved all liabilities, and verified that no material financial or legal risks remain, a final distribution is made to the creditors and the receivership is terminated. During 2019, four new receiverships were added to the FDIC’s inventory of receiverships and 28 were terminated, leaving 248 active receiverships at year-end.

Human Resources (staffing and training): Current and projected workloads are continually assessed to ensure that adequate staff and contractor resources (if needed) are available to fulfill the FDIC’s receivership management responsibilities.

Information Technology: The Receivership Oversight Management System (ROMS) provides information to track FDIC receiverships through the termination process and is used to identify termination impediments.

Verification and Validation

The process of terminating a receivership is tracked in FDIC systems and monthly termination reports are reviewed for accuracy. System users validate data and any discrepancies are reconciled. Results are reported through established management reporting processes.

2019 Performance Results

The FDIC successfully met the performance target for this annual performance goal in 2019. This annual performance goal and its associated performance indicator and target are substantively unchanged for 2020.


STRATEGIC OBJECTIVE 5.2

Potential recoveries, including claims against professionals, are investigated and pursued if deemed to be meritorious and expected to be cost-effective.

Annual Performance Goal 5.2-1     

Conduct investigations into all potential professional liability claim areas for all failed IDIs and decide as promptly as possible to close or pursue each claim, considering the size and complexity of the institution.

Indicator and Target

  1. Percentage of investigated claim areas for which a decision has been made to close or pursue the claim
    • For 80 percent of all claim areas, make a decision to close or pursue professional liability claims within 18 months of the failure of an IDI.

Means and Strategies

Operational Processes (initiatives and strategies): The FDIC investigates potential claims against professionals (e.g., directors, officers, attorneys, and others) whose actions may have contributed to losses at a failed institution and assesses the viability of recovery sources including liability and fidelity insurance policies. Once the investigation is complete, the FDIC determines whether it has viable, cost-effective claims and whether it should pursue them. Most professional liability investigations must be completed and viable claims filed within three years following an institution’s failure to meet statute of limitations requirements.

In 2019, the FDIC implemented process improvements to increase efficiency and streamline the collection of failed bank records. These process improvements, including a new inventory methodology, enable faster document analysis. As a result, the time between the failure of the institution and the identification and availability of data necessary for use in pursuit of a claims decision is reduced.

Human Resources (staffing and training): Workload requirements are regularly reassessed to ensure that staffing is sufficient to fulfill these responsibilities. The FDIC uses contractor resources (including outside legal counsel) and hires nonpermanent staff, as needed.

Information Technology: The FDIC DOLLARS system is utilized to obtain the status, and monitor the pursuit, of professional liability claims. The system provides the means to track institution failure dates, potential statute of limitation expiration dates, and other pertinent dates.

Verification and Validation

Periodic data reviews are conducted to ensure that the information in DOLLARS is current and accurate. Progress in meeting this goal is reported through established management reporting processes.

2019 Performance Results

The FDIC successfully met the performance target for this annual performance goal in 2019. This annual performance goal and its associated performance indicator and target are unchanged for 2020.


STRATEGIC OBJECTIVE 5.3

Resolution of the failure of a large, complex financial institution is carried out in an orderly manner in accordance with statutory mandates.

Annual Performance Goal 5.3-1     

Ensure the FDIC’s operational readiness to administer the resolution of large financial institutions, including those designated as systemically important.           

Indicators and Targets

  1. Refinement of resolution plans and strategies
    • Continue to refine plans to ensure the FDIC’s operational readiness to administer the resolution of large, complex financial institutions.
  2. Continued cross-border coordination and cooperation in resolution planning
    • Continue to deepen and strengthen working relationships with key foreign jurisdictions, both on a bilateral basis and through multilateral fora.

Means and Strategies

Operational Processes (initiatives and strategies): The largest BHCs are required to prepare resolution plans under Title I of the Dodd-Frank Act. These resolution plans must demonstrate that the firm could be resolved under bankruptcy without serious adverse effects on financial stability in the United States. As a backstop, for circumstances in which an orderly bankruptcy process might not be possible, Title II of the Dodd-Frank Act provides the FDIC with Orderly Liquidation Authority (OLA) to manage the failure of the firm. This authority may only be implemented after recommendations by the appropriate federal regulatory agencies and a determination by the Secretary of the Treasury in consultation with the President.

Given the challenges presented in the resolution of a large, complex financial company— especially as these companies are currently organized and operated—the FDIC initially focused its efforts on developing a resolution strategy called the single point of entry. This strategy would place the top-tier parent company of the firm into receivership while establishing a temporary bridge financial company (BFC) to hold and manage its critical operating subsidiaries for a limited period. To operate the BFC, the FDIC would appoint a new board of directors and senior management that would be charged with managing the wind-down of the firm in a way that minimizes systemic disruption. Losses would be borne by creditors, including holders of long-term debt and equity, in accordance with the priorities established under the OLA. As a well-capitalized entity, the FDIC expects that the BFC and its subsidiaries would be in a position to borrow from customary sources in private markets to meet its liquidity needs.

However, if such funding was not immediately available, the law provides a dedicated, back-up source of liquidity—not capital—through the Orderly Liquidation Fund (OLF). The OLF would be used, if necessary, in the initial stage of resolution until private funding could be accessed.

There are a number of important limitations on the use of the OLF. The Dodd-Frank Act limits the amount that can be borrowed and requires that any OLF borrowing must be repaid from recoveries on the assets of the failed firm. If that should prove insufficient, assessments would be levied on the largest financial companies. Under the law, taxpayers cannot bear losses. Instead, losses are borne by the failed company through its shareholders and creditors, and, if necessary, by the financial industry through assessments.

Advance planning and cross-border coordination are essential to prepare for the orderly resolution of systemically important financial companies with international operations. Recognizing that such financial companies present complex cross-border legal and operational planning challenges, the FDIC works on an ongoing basis with foreign regulators to operationalize, maintain, and enhance frameworks for effective cross-border cooperation.

Human Resources (staffing and training): This annual performance goal will be carried out largely by existing FDIC staff. The training needs of staff are reviewed regularly to ensure that teams have knowledge and expertise necessary to appropriately perform their assigned responsibilities.

Information Technology: Existing IT systems from the failed institution will be used in the resolution of a large, complex firm. The FDIC will continue to identify other IT needs relative to a failure of a large, complex financial institution during 2020.

Verification and Validation

The FDIC has extensive experience in resolving the failure of IDIs and has devoted considerable time and resources to planning for the rapid and orderly resolution of large, complex financial institutions. To evaluate the effectiveness of these planning efforts and to identify areas of further development, the FDIC holds operational exercises to validate the steps involved in carrying out a systemic resolution. In addition, the resolution strategies are presented and discussed in international fora, including crisis management groups and several other international platforms for engagement among senior staff of supervisory and resolution authorities focused on resolution planning.

2019 Performance Results

The FDIC successfully met the performance targets for this annual performance goal in 2019. This annual performance goal and its associated performance indicators and targets are unchanged for 2020.