The Federal Deposit Insurance Corp.’s Deposit Insurance Fund balance increased to $22.7 billion in the second quarter from $15.3 billion in the first.
This increase is a result of $4 billion in revenue from excess debt guarantee program, or DGP, fees held as systemic risk deferred revenue, $2.9 billion in assessment revenue, and a decrease in the provision for insurance losses of $807 million, partially offset by $407 million in operating expenses.
Through consecutive quarters since the beginning of 2010, the fund balance has increased by $43.6 billion.
The FDIC took 15 failed institutions into receivership in the second quarter (see chart below for annual breakouts). The combined assets at inception for these institutions totaled $2.8 billion with an estimated loss of $520 million. The corporate cash outlay during the second quarter for these failures was approximately $463 million.
The FDIC recently launched a series of outreach shops to help investors figure out how to invest or acquire assets from failed banks.
On June 30, the DIF investment portfolio stood at $37.9 billion (total market value), up $300 million from its December 31, 2011, balance of $37.6 billion. The modest increase primarily reflects the aforementioned $4 billion fund transfer from the DGP portfolio on June 29, receivership dividend receipts, and other inflows.
