The Federal Deposit Insurance Corp.'s board of directors voted to approve a $2.7 billion budget for 2013. With fewer anticipated costs for bank failures and their clean-ups, the budget for the upcoming year had an 18% drop from previous years.
"Yet the agency is hardly back to its pre-crisis levels. The FDIC is maintaining significant funds for a still high number of troubled institutions and resources to implement the Dodd-Frank Act, including a new facility to unwind failed megabanks," writes American Banker's Joe Adler.
According to the official budget, a substantial amount of the 2013 resources will be "devoted to fulfilling" the FDIC's "new responsibilities under" the Dodd-Frank Act. These new responsibilities include monitoring the risks in systemically important financial institutions, reviewing any resolutions plans submitted by companies covered by DFA, and if necessary, preparing to undertake their orderly liquidation.
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