reported that insured commercial banks earned record annual profits for 1997, reaching
$59.2 billion, up $6.8 billion from 1996 results. Strong growth in loans and other
interest-earning assets was responsible for the earnings rise. In 1998, bank earnings set
a new record for the seventh consecutive year at $61.9 billion (Click here).
FDIC Board member Eugene A. Ludwigs tenure on the Board ended with the expiration
of his five-year term as Comptroller of the Currency. On December 8, John D. Hawke, Jr.,
was sworn in as the 28th Comptroller of the Currency, filling the FDIC Board seat vacated
by Mr. Ludwig. In the interim, Julie L. Williams, as Acting Comptroller, served on the
FDIC Board (Click here).
Omnibank, River Rouge, Michigan, was the first FDIC-insured bank to fail since November
1997. Two more banks failed during 1998. All three banks were insured by the Bank
Insurance Fund (Click here).
The FDIC Board voted to simplify the deposit insurance rules, making them easier to
understand and less burdensome without reducing the consumer protections or
safetyandsoundness standards for institutions (Click here and click here).
At a two-day symposium, "Managing the Crisis: The FDIC and RTC Experience,"
current and former FDIC and Resolution Trust Corporation (RTC) executives discussed the
strategies they used to resolve troubled banks and thrifts during the financial crisis of
the 1980s and 90s. Between 1980 and 1994, a total of 1,617 banks and 1,295 thrifts
failed (Click here).
A new Internet service was launched giving the public quick and easy access to
Community Reinvestment Act evaluations for banks and thrifts supervised by the FDIC. The
FDICs ratings and evaluations can be accessed from the agencys Web site (Click here).
Donna Tanoue was sworn in as the 17th Chairman of the FDIC. Andrew C. Hove, Jr., who
had served as Acting Chairman since June 1997, resumed his position as the agencys
Vice Chairman (Click here).
FDIC examiners had completed at least one on-site review at each institution the FDIC
regulates to assess efforts to address Year 2000 issues. At year-end 1998, 97 percent of
were making satisfactory progress toward achieving Year 2000 readiness (Click here and click here).
The FDIC announced its "Suspicious Internet Banking" Web site designed to
help detect potentially fraudulent Internet banking activity. The site provides the public
and the industry with a "user-friendly" vehicle for reporting entities on the
Internet that may be misrepresenting themselves as legitimately chartered or federally
insured depository institutions (Click here and click here).
The FDIC Board voted to expedite the processing of applications filed by well-managed,
well-capitalized institutions. More than 90 percent of all FDIC-supervised banks meet the
eligibility standards (Click here and click here).
With the rapid growth of electronic commerce and the increased collection of
consumers personal information over the Internet, the FDIC alerted bankers to the
issue of online privacy. The FDIC encouraged institutions to maintain an awareness of
consumers online privacy concerns, while taking
voluntary, specific actions to address them (Click here).
Top government officials from 62 countries, including the leaders of deposit insurance
agencies in more than 20 nations, met in Washington, DC, for a three-day FDIC-sponsored
conference to discuss the role of deposit insurance in sustaining public confidence in the
worlds banking systems (Click here, click here and click here).
The FDIC unveiled a new Internet service allowing the public easy access to a listing
of banks pending applications that are subject to public comment (Click here).
Joseph H. Neely resigned as a member of the FDICs Board of Directors. He had
served since January 29, 1996.
A "user-friendly" electronic deposit insurance estimator called
"EDIE" became available on the FDICs Web site. The service enables
consumers and financial institution employees to quickly check whether a depositor with
multiple accounts at the same institution has exceeded the $100,000 statutory limit for
deposit insurance coverage (Click
here, click here and click here).
The FDIC Board approved a 1999 budget of $1.218 billion, an 11 percent decrease ($148
million) from the $1.366 billion authorized for 1998. The budget will allow the agency to
pursue its supervisory plans to ensure the safety and soundness of insured financial
institutions and the industrys Year 2000 compliance (Click here).
Tanoue at her April 22nd Senate confirmation hearing. She was accompanied
to the hearing by both of Hawaii's senators-Daniel K. Inouye (top) and
Daniel K. Akaka (below).