Bank Insurance Fund (BIF):
Comprehensive income (net income
plus current period unrealized gains/losses on available-for-sale securities) was $325
million for the quarter ending March 31, 2000, increasing the fund balance to $29.7
billion.
Revenue totaled
$458 million for the quarter ending March 31, 2000. The fund earned $432 million in
interest on investments in U.S. Treasury obligations and $17 million in deposit insurance
assessments.
Receivables from bank resolutions are $612 million at
March 31, 2000. This receivable peaked at $27.8 billion in 1992 due to the large number of
bank failures occurring at that time.
The contingent liability for anticipated failures of
insured BIF institutions at $314 million reflects the stable condition of the banking
industry. In addition to this recorded estimated loss, the FDIC has recently identified a
small number of additional BIF-insured financial institutions that are likely to fail in
the near future unless institution management can resolve existing problems. If these
institutions fail, they may collectively cause a material loss to the BIF, but the amount
of potential loss is not estimable at this time. As a result, no loss has been reflected
in the BIF’s first quarter 2000 financial results.
One BIF-insured institution failed during the first
quarter of 2000. Total assets at failure were $113 million.
Savings Association Insurance Fund
(SAIF):
Comprehensive
income was $154 million for the quarter ending March 31, 2000, increasing the fund balance
to $10.4 billion.
Revenue totaled
$155 million for the quarter ending March 31, 2000. The fund earned $151 million in
interest on U.S. Treasury obligations and $4 million in deposit insurance assessments.
The contingent
liability for anticipated failures of insured SAIF institutions at $57 million has
remained constant over the last year and reflects the stable condition of the thrift
industry.
One SAIF-insured
thrift failed during the first quarter of 2000. Total assets at failure were $30 million.
The Deposit
Insurance Funds Act of 1996 required the establishment of a Special Reserve of the SAIF
if, on January 1, 1999, the reserve ratio exceeded the Designated Reserve Ratio (DRR) of
1.25 percent. As a result, $978 million was placed in a Special Reserve of the SAIF to be
administered by the FDIC. On November 12, 1999, the Gramm-Leach-Bliley Act was enacted
which eliminated the SAIF Special Reserve upon enactment. The SAIF financial statements
include the Special Reserve Fund balance, when applicable, for comparative years.
FSLIC
Resolution Fund (FRF):
~FRF-FSLIC~
The U.S.
Department of Treasury (U.S. Treasury) has determined that the FRF is responsible for the
payment of judgments and settlements in most supervisory goodwill litigation cases against
the U.S. Government.
Future goodwill
litigation payments cannot be reasonably estimated at this time.
Several goodwill
litigation cases are currently on appeal, the final outcome of which is uncertain. Funds
to cover goodwill settlements are provided by an open-ended appropriation as provided by
section 110 of the Department of Justice Appropriations Act, 2000. Because of this, any
liabilities for goodwill litigation should have no material impact on the financial
condition of the FRF-FSLIC. If an appropriation to the FRF-FSLIC was not available to pay
the goodwill litigation judgments and settlements, these liabilities would be material and
could adversely affect the financial condition of the fund.
In addition to
payments for goodwill settlements, the FRF is responsible for reimbursing the U.S.
Department of Justice for its goodwill litigation expenses.
Assets in
liquidation totaled $37 million as of March 31, 2000, down by $48 million over the last 12
months.
~FRF-RTC~
The RTC
Completion Act (Act) requires the FDIC to return to the U.S. Treasury any funds that were
transferred to the RTC pursuant to the RTC Completion Act but not needed by the RTC. The
Act made available approximately $18 billion worth of additional funding, of which $4.556
billion was used. The Act mandates that the FDIC must transfer to the Resolution Funding
Corporation (REFCORP) the net proceeds from the sale of FRF-RTC assets (once all
liabilities of the FRF-RTC have been provided for) to pay the interest on REFCORP bonds.
Any such payments benefit the U.S. Treasury, which would otherwise be obligated to pay the
interest on the bonds.
On July 27,
1999, the FDIC Board of Directors granted authority to the Director of the Division of
Finance, or his designee, to: 1) repay the U. S. Treasury $4.556 billion in appropriations
made to the RTC pursuant to the RTC Completion Act; and 2) after the U. S. Treasury has
been paid, to pay the REFCORP any additional excess cash until such time as the FRF-RTC is
dissolved upon satisfaction of all debts and liabilities and sale of all assets.
With the last
payment of $271 million on February 3, 2000, the FRF-RTC has fully repaid the $4.556
billion to the U.S. Treasury. The FRF-RTC cash balance is $1.4 billion at March 31, 2000.
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