The Federal Deposit Insurance Corporation (FDIC) Board today approved a $3.28 billion operating budget for 2012, 15.4% lower than the 2011 budget.
FDIC announced that the authorized 2012 staffing of 8,704 employees, a net reduction of 565 positions
Additionally, the FDIC Board expects further staff reductions projected in 2013 and future years. Over one-third of all authorized staff positions for 2012 will be temporary hires.
ABA Chief Economist Jim Chessen stated: "We applaud FDIC over its stewardship of the industry's funds by employing temporary employees in the recognition of the cyclical nature of bank failures. The decline in the 2012 budget and staffing is an indication that health of the banking industry continues to improve. The pace of bank failures has slowed and the number of troubled banks is trending lower."
However, FDIC's 2012 budget is allocating additional resources towards the implementation of provisions in the Dodd-Frank Act. FDIC is adding 24 permanent positions for institutional monitoring and resolution planning of complex financial institutions.
Read the press statement.
View slide show on the budget.