We performed this performance audit to satisfy the requirements of section 38(k) of the
FDI Act, as amended by the Financial Reform Act, which provides, in general, that if the
DIF incurs a material loss with respect to an insured depository institution, the Inspector
General of the appropriate federal banking agency shall prepare a report to that agency,
reviewing the agency’s supervision of the institution. Section 38(k), as amended,
establishes an MLR threshold of $150 million for losses that occur for the period
January 1, 2012 through December 31, 2013. The FDI Act requires that the report be
completed within 6 months after it becomes apparent that a material loss has been
incurred