Tuesday, March 24, 2009

paid from two funds managed by the FDIC—the Deposit Insurance Fund (DIF) and the FSLIC Resolution Fund (FRF)


"The FDIC Board of Directors approves an annual Corporate Operating Budget to fund the operations of the Corporation. The Corporate Operating Budget consists of two components, Ongoing Operations and Receivership Funding. The Receivership Funding component of the operating budget includes funds for all resolutions and receivership management activities, except the costs associated with maintenance of the core platform staff that is maintained to perform these functions regardless of the level of failure activity. The Receivership Funding component of the 2009 Corporate Operating Budget was substantially increased to provide budget authority for the projected continuation of high levels of failure activity and related receivership management work.

The FDIC also has a separate Investment Budget that is composed of individual project budgets approved by the Board of Directors for major investment projects. Budgets for investment projects are approved on a multi-year basis, and funds for an approved project may be carried over from year to year until the project is completed.

The Corporate Operating Budget provides resources for the operations of the Corporation’s three major programs or business lines—Insurance, Supervision, and Receivership Management—as well as its major program support functions (legal, administrative, financial, information technology, etc.). Program support costs are allocated to the three business lines in order to permit the fully loaded costs of each business line to be displayed in the operating budget approved by the Board.

Expenditures from the Corporate Operating and Investment Budgets are paid from two funds managed by the FDIC—the Deposit Insurance Fund (DIF) and the FSLIC Resolution Fund (FRF). The DIF is funded by deposit insurance premiums paid by insured financial institutions as well as interest earned on the investment of those funds, while the FRF consists of public funds appropriated by the Congress. In addition, receiverships managed by the Corporation reimburse the insurance funds for services provided by the FDIC.

The Board of Directors approved the 2009 Corporate Operating Budget on December 16, 2008. For more information on that budget as well as projected 2009 spending from the Investment Budget, please click on the link below."

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