Events continue to
highlight the importance
of the FDIC.
In the decade following the crisis of the 1980s and early 1990s, the business of banking became more profitable but also more complex. The industry consolidation that began in the 1980s accelerated. Big financial institutions got bigger. Simultaneously, however, community banks found ways to thrive and prosper.
The following panels will cover recent FDIC history and describe how we serve the American people today.
A Week in the
Life of the FDIC
Identifying risks and promoting
stability have been hallmarks of the FDIC’s mission for 75 years. But the FDIC’s job doesn’t end there. Here is a behind-the-scenes look at a typical “Week in the Life of the FDIC.”
Managing the Deposit
The FDIC manages the deposit insurance fund, which is supported by risk-based premiums paid by insured banks and thrifts. On an ongoing basis, FDIC staff work to set appropriate deposit insurance premiums and to structure the deposit insurance fund’s portfolio of Treasury securities.
Responding to Questions
The FDIC typically responds to more than 5,000 inquiries each week from consumers and financial professionals about deposit insurance coverage. The FDIC’s Web site, which contains extensive information on deposit insurance, consumer protection, and banking, is used by the public more than 500,000 times a week.
Examining and Supervising Banks
FDIC staff conduct off-site monitoring and on-site examinations to assess risk and promote prudent banking practices. Examinations identify whether banks operate in a safe and sound manner and comply with consumer protection laws. During any given week, the FDIC may be examining more than 200 banks.
Promoting Local Lending
The FDIC encourages banks to make mortgages and other loans in low- and moderate-income neighborhoods. One strategy involves conducting about 10 outreach meetings weekly with bankers and community representatives.
4,532 – Number of FDIC employees
at year-end 2007.
When a bank fails, the FDIC often winds up acquiring some of the institution’s assets. Through the years, the FDIC has temporarily owned some highly unusual businesses and properties, typically the result of bad loans or investments made by the failed banks. Take a look at some of our oddest acquisitions.
The FDIC owned 12 percent of the team during the 1988 and 1989 seasons, after FirstRepublic Corporation of Dallas failed in 1988.
Citrus and Almond Tree Farms
Assets acquired by the FDIC often require significant upkeep. For example, FDIC asset managers had to purchase machinery to protect our citrus crops from freezing weather and bought beehives for pollination of our almond trees.
The FDIC owned fleets in California, Arizona, and New York.
Ghosts and Ghouls
The FDIC acquired a house in Salem, Massachusetts, that was reputedly haunted by the ghosts of the men and women who were sent to their deaths more than 300 years ago by the previous landowner, the town sheriff. The property was acquired from the Bank of New England, which failed in 1991.
The RTC acquired the Mulholland Library of Conjuring and the Allied Arts from the failed First Network Savings in 1990. Magician David Copperfield made it disappear from the RTC’s asset portfolio by purchasing it for $2.2 million. The collection included letters written by Harry Houdini and books dating back to the 16th century.
Grizzly 2: The Predator
The FDIC acquired this B-grade horror picture, filmed in 1983 with budding stars Charlie Sheen and George Clooney. The movie is about a grizzly bear that attacks patrons at a rock concert in a national park.
From Oil Tankers to Shrimp Boats
Throughout the years, the FDIC has had interests in oil tankers, shrimp boats, and tuna boats, and consequently experienced many of the pitfalls facing the maritime industry. In one case, an oil tanker ran aground. In another, a shrimp boat was blown onto the main street of Aransas Pass, Texas, by a hurricane.
The FDIC temporarily owned more than 100 race horses and breeding horses, most of which had been collateral for loans made by the failed Penn Square Bank in Oklahoma.
Las Vegas Casinos
In 1993, the FDIC acquired the voting rights to a controlling share of the stock in companies that owned casinos, including the Maxim and the Dunes in Las Vegas.