Federal Deposit Insurance Corporation (FDIC).

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The Federal Deposit Insurance Corporation (FDIC) is the independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation's banking system. In its unique role as deposit insurer of banks and savings associations, and in cooperation with other federal and stale regulatory agencies, the FDIC seeks to promote the safety and soundness of insured depository institutions in the U.S. financial system by identifying, monitoring, and addressing risks to the deposit insurance funds. The FDIC aims at promoting public understanding and sound public policies by providing financial and economic information and analyses. It seeks to minimize disruptive effects from the failure of banks and savings associations, and to ensure fairness in the sate of financial products and the provision of financial services.

To maintain its insurance funds, the FDIC assesses depository institutions insurance premiums twice a year. The amount of the premium is based on the institution's balance of insured deposits for the preceding two quarters and the institution's risk to the insurance fund. The Corporation may borrow from the U.S. Treasury, not to exceed $30 billion outstanding, but the agency has made no such borrowings since it was organized in 1933. The FDIC's Bank Insurance Fund was $34.8 billion (unaudited) and the Savings Association Insurance Fund stood at $12.8 bil. (unaudited), as of June 30, 2005.