FDIC STAFF AND EXPENSES TO DROP SHARPLY, CHAIRMAN HELFER TELLS AMERICAN BANKERS ASSOCIATION CONVENTION
FOR IMMEDIATE RELEASE
The staff of the Federal Deposit Insurance Corporation will
decline by about a seventh this year and the expenses of the agency
will be cut by about a fifth, FDIC Chairman Ricki Helfer announced
"That means that, by the end of the year, FDIC staff will be
down more than a third from its peak of 15,611 in mid-1993,"
Chairman Helfer told a meeting of the American Bankers Association
in San Francisco. "There is more we need to do to reduce staff and
expenses as the remaining assets of failed banks and thrift
institutions are disposed of -- and we will do it."
Chairman Helfer described her managerial approach as
"retooling and repositioning the FDIC," which includes a drive
toward greater internal efficiency and a shift of the
organization's focus to monitoring, assessing and addressing risks
to depository institutions. Reviewing her first year as FDIC
Chairman, she noted that the FDIC had implemented the first
strategic plan in its 60-year history; under its first operating
plan, the agency had initiated 150 projects; the agency is
assessing the number of staff that it needs now and once it has
liquidated the assets of banks and thrift institutions that failed
in the 1980s and the early 1990s; and the agency is introducing
more computer technology to make sure bank examinations are more
thorough, but less intrusive.
"I seek to run the FDIC the way a business operates," Chairman
Helfer said, "by striving for greater productivity and enhanced
performance, by using rigorous cost/benefit analysis, and by
relying on up-to-date management concepts and technology."
A copy of Chairman Helfer's text is attached.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore
public confidence in the nation's banking system. The FDIC insures deposits
at the nation's 12,000 banks and savings associations and it promotes the
safety and soundness of these institutions by identifying, monitoring and
addressing risks to which they are exposed.