Chairman's Message

I am pleased to present the Federal Deposit Insurance Corporation’s (FDIC’s) 2009 Annual Performance Plan. During these extraordinarily challenging times for the nation’s banking industry, the FDIC’s mission of maintaining stability and public confidence remains as relevant and vital as ever. We take these mission responsibilities very seriously and, as you will see in the pages that follow, we have carefully laid out plans to ensure that we will again successfully accomplish our mission in 2009.

Our plan is segmented into three discrete, but related, core program areas—insurance, supervision, and receivership management. Our insurance program protects insured depositors from loss in the event that their insured financial institution fails. Our supervision program provides, in conjunction with state authorities, regulatory oversight for over 5,000
state-chartered banks to ensure that they are properly managing risks and complying with consumer protection and other statutes. Where necessary, it also performs back-up supervisory activities under our special examination authority for the roughly 3,250 financial institutions for which we are not the primary federal regulator. Our receivership management program markets failed financial institutions and their assets and distributes the proceeds to receivership creditors in a manner designed to maximize recoveries on receivership claims .

As an adjunct to these core mission responsibilities, the FDIC is committed to the successful implementation of several initiatives that are directed toward restoring stability to the nation ’s financial system:

• The FDIC established the Temporary Liquidity Guarantee Program (TLGP) in October 2008. The TLGP includes a debt guarantee component designed to facilitate inter-bank lending and a transaction account guarantee component that insures deposits in non-interest bearing transactional accounts.

• The FDIC directly supports the Capital Purchase Program (CPP) established in October 2008 by the Department of the Treasury. The Corporation reviews and makes recommendations on CPP funding requests from FDIC-supervised institutions and, if approved, monitors the usage of those funds during examinations of those institutions.

• In conjunction with the Department of the Treasury, the FDIC established in March 2009 a Legacy Loans Program (LLP) to facilitate the sale of distressed loans by financial institutions to Public-Private Investment Funds (PPIFs) that will be funded jointly by private investors and the Department of the Treasury.

• The FDIC provides outreach, technical assistance, and related support to community and consumer groups that are pursuing loan modification and foreclosure prevention initiatives in high-need areas .

Throughout its 75-year history, FDIC depositors have been able to count on quick and complete access to their insured deposits. This consistency has promoted stability and public confidence in the Nation’s financial system. The FDIC will continue this record of achievement in 2009 through the continuing hard work and innovation of its dedicated and highly skilled workforce.

Sheila C. Bair
Chairman