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Highlights: 
Among the significant activities and accomplishments reported in this edition of the �౦��Ϸ����'s Letter to Stakeholders are the following:

• �౦��Ϸ����-insured commercial banks and savings institutions reported net income of $5.0 billion in the second quarter of 2008, a decline of $31.8 billion (86.5 percent) from the $36.8 billion the industry earned in the second quarter of 2007.
• The Deposit Insurance Fund (DIF) balance decreased by 14 percent ($7.6 billion) to $45.2 billion during the second quarter of 2008.
• The �౦��Ϸ���� is conducting, along with the U.S. Bureau of the Census, the first national household survey to collect data on the number and demographic characteristics of unbanked and underbanked households.
• The �౦��Ϸ���� published Guidance for Managing Third- Party Risk , which identifies sound practices in connection with third-party relationships.
• The Summer 2008 issue of Supervisory Insights highlights the need for greater transparency in the structured finance market, the risks and fallout associated with the growth in nontraditional mortgage products, and the inappropriate use of interest reserves.

Your feedback to the Letter to Stakeholders is encouraged, as are suggestions for improvement.

For more information, visit the �౦��Ϸ����'s Web site at .

Distribution: 
�౦��Ϸ����-Insured Institutions

Suggested Routing: 
Chief Executive Officer

Note: 
�౦��Ϸ���� financial institution letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2008/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562- 2200).