PRESS RELEASE
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
February 20, 2007
Media Contact:
David Barr (202) 898-6992
dbarr@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-14-2007
FDIC Reports Year-End 2006 Financial Results for the Deposit
Insurance Fund and the FSLIC Resolution Fund
Unqualified Audit Opinions on Funds' Financial Statements Issued
by the Government Accountability Office
The Federal Deposit Insurance Corporation (FDIC) today announced that the
Corporation has received its fifteenth consecutive set of unqualified audit opinions on
the financial statements of the two funds that it manages. The Government
Accountability Office (GAO), the FDIC's external auditor, also reported that no material
weaknesses or significant deficiencies were identified during the periods covered by the
GAO's audits with respect to either the Corporation's financial reporting or controls over
its financial systems. The FDIC will continue to work with the GAO in the future to
further enhance controls in the information systems security area.
The Deposit Insurance Fund (DIF) earned $1.6 billion in comprehensive income during
2006, increasing the fund balance to $50.2 billion at year-end. This $1.6 billion
compares favorably to the $1.1 billion in comprehensive income earned for the same
period in 2005, before the FDIC merged the Bank Insurance Fund and Savings
Association Insurance Fund. Excluding $345 million in exit fees (a one-time adjustment
made in conjunction with the merger of the BIF and the SAIF), comprehensive income
rose by $133 million from a year ago. This year-over-year increase is primarily due to a
decrease in the unrealized loss on available-for-sale securities of $348 million, which
was offset by decreases in both interest earned on U.S. Treasury obligations of $101
million and the negative provision for loss of $108 million.
The FSLIC Resolution Fund (FRF) reported a net loss of $203 million in 2006 primarily
due to the $411 million cost of goodwill and Guarini litigation that exceeded interest on
U.S. Treasury obligations of $152 million and recovery of tax benefits of $35 million.
For the year ending December 31, 2006, Corporate Operating and Investment Budget
related expenditures of $973 million and $25 million were below budget by 8 percent
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
February 20, 2007
Media Contact:
David Barr (202) 898-6992
dbarr@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-14-2007
FDIC Reports Year-End 2006 Financial Results for the Deposit
Insurance Fund and the FSLIC Resolution Fund
Unqualified Audit Opinions on Funds' Financial Statements Issued
by the Government Accountability Office
The Federal Deposit Insurance Corporation (FDIC) today announced that the
Corporation has received its fifteenth consecutive set of unqualified audit opinions on
the financial statements of the two funds that it manages. The Government
Accountability Office (GAO), the FDIC's external auditor, also reported that no material
weaknesses or significant deficiencies were identified during the periods covered by the
GAO's audits with respect to either the Corporation's financial reporting or controls over
its financial systems. The FDIC will continue to work with the GAO in the future to
further enhance controls in the information systems security area.
The Deposit Insurance Fund (DIF) earned $1.6 billion in comprehensive income during
2006, increasing the fund balance to $50.2 billion at year-end. This $1.6 billion
compares favorably to the $1.1 billion in comprehensive income earned for the same
period in 2005, before the FDIC merged the Bank Insurance Fund and Savings
Association Insurance Fund. Excluding $345 million in exit fees (a one-time adjustment
made in conjunction with the merger of the BIF and the SAIF), comprehensive income
rose by $133 million from a year ago. This year-over-year increase is primarily due to a
decrease in the unrealized loss on available-for-sale securities of $348 million, which
was offset by decreases in both interest earned on U.S. Treasury obligations of $101
million and the negative provision for loss of $108 million.
The FSLIC Resolution Fund (FRF) reported a net loss of $203 million in 2006 primarily
due to the $411 million cost of goodwill and Guarini litigation that exceeded interest on
U.S. Treasury obligations of $152 million and recovery of tax benefits of $35 million.
For the year ending December 31, 2006, Corporate Operating and Investment Budget
related expenditures of $973 million and $25 million were below budget by 8 percent
and 9 percent, respectively. Corporate Operating Budget expenditures were lower than
expected as a result of limited resolution and receivership activities during the year.
A complete copy of FDIC's 2006 Annual Report is available on the FDIC's Web site
at http://www.fdic.gov/about/strategic/report/2006annualreport/index_pdf.html
expected as a result of limited resolution and receivership activities during the year.
A complete copy of FDIC's 2006 Annual Report is available on the FDIC's Web site
at http://www.fdic.gov/about/strategic/report/2006annualreport/index_pdf.html