Footnote 1: The FDIC acts as a receiver for failed insured depository institutions. As receiver, the FDIC is charged with winding up the affairs of failed institutions, including the liquidation of failed institutions and the disposition of their assets. The FDIC also acts separately in its own corporate capacity as the primary federal regulator for state non-member banks. All FDIC business activity reviewed in the course of this audit was undertaken by the FDIC in its receivership capacity.

Footnote 2: The Bank Insurance Fund (BIF) was established by the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) for use by the FDIC in paying insurance for bank deposits. The Savings Association Insurance Fund (SAIF) was established by FIRREA for use by the Corporation in paying insurance for deposits in thrifts and savings and loans.

Footnote 3: Uninsured depositors are those whose accounts are over the $100,000 deposit insurance limit. General creditors include suppliers and servicers of the failed bank who are owed funds.

Footnote 4: P.L. No. 102-242, codified throughout title 12, U.S.C.

Footnote 5: The resolution process involves valuing a failing federally insured depository institution, marketing it, soliciting and accepting bids for the sale of the institution, determining which bid is least costly to the insurance fund, and working with the acquiring institution(s) through the closing process (or ensuring the payment of insured deposits in the event there is no acquirer).

Footnote 6: All of the employees retained from the four institutions were hired through third-party contractors. However, DRR approved those retention decisions and, for the purposes of this report, we consider the retention decisions to be those of DRR.

Footnote 7: The SRP is intended to promote the development of a singular inter-divisional coordination plan and provide the Resolutions Coordinator (RC) and RIC with a resolution planning and management tool. Among other uses, the SRP serves to assist in early identification of potential issues/problems and provide senior management with an early warning of potential resolution issues. Usually within 90 days after institutional failure, the SRP is replaced by the Receivership Business Plan (RBP), which serves the same purpose as the SRP.

Footnote 8: For the purpose of this report, a case may take the form of a memorandum to the FDIC Board of Directors, DRR Receivership Oversight Committee, or the RIC, requesting certain expenditures of funds during the resolution process.

Footnote 9: Approximately 80 employees were hired under the Allan C. Ewing contract, and 60 employees were hired under the On Call Staffing contract.

Footnote 10: The case was approved by the FDIC Board of Directors and was developed to obtain expenditure authority for the consolidated contracting plan for resolutions and receiverships.

Footnote 11: The Bank Holding Company Act of 1956 defines a bank holding company as any company that has control over any bank or over any company that is or becomes a bank holding company by virtue of the Act.

Footnote 12: Securitization is the process by which loans are packaged into pools that are then used as collateral to back securities sold to investors in the capital markets.

Footnote 13: First Annapolis Consulting was engaged to advise the FDIC on a variety of issues related to credit cards. Among other things, the contractor was to assist the FDIC in establishing market prices for various servicing and processing functions and to advise the FDIC in the areas of fraud, technology, and issues involving the servicing and processing of credit cards.

Footnote 14: GLBA (Pub. L. No. 106-102) substantially repealed the provisions of the Glass-Steagall Act and amended the Bank Holding Company Act to eliminate barriers preventing the affiliations of banks with securities firms and insurance companies.

Footnote 15: According to an FDIC contracting official, the decision to submit Hamilton employees to background and fingerprint checks was a mistake, and the FDIC would not make such a decision again.

Footnote 16: Identity theft occurs when someone uses personal information without permission to commit fraud or other crimes. Victims may also lose job opportunities; be refused loans, education, housing, or cars; or may get arrested for crimes they did not commit.