BB&T 2007 Annual Report Download - page 8

regulations, and governmental economic and monetary policies. BB&T cannot predict whether any of these changes
may adversely and materially affect the Company. The current regulatory environment for financial institutions
entails significant potential increases in compliance requirements and associated costs, including those related to
consumer credit, with a focus on mortgage lending. For example, the North Carolina legislature in 2007 passed a
number of bills that impose additional requirements, limitations and liabilities on mortgage loan brokers, originators
and servicers. Generally, these enactments cover banks as well as state-licensed mortgage lenders. The legislatures
of other states, such as Georgia, Maryland and South Carolina, may enact similar legislation in the future.
Federal and state banking regulators also possess broad powers to take supervisory actions as they deem
appropriate. These supervisory actions may result in higher capital requirements, higher insurance premiums
and limitations on BB&T’s activities that could have a material adverse effect on the Company’s business and
profitability. For a further discussion regarding other uncertainties arising from how the Company is regulated
and supervised, please refer to the “Regulatory Considerations” section herein.
Significant litigation could have a material adverse effect on BB&T.
BB&T faces legal risks in its businesses, and the volume of claims and amount of damages and penalties
claimed in litigation and regulatory proceedings against financial institutions remain high. Substantial legal
liability or significant regulatory action against BB&T could have material adverse financial effects or cause
significant reputational harm to BB&T, which in turn could seriously harm BB&T’s business prospects.
BB&T’s business could suffer if it fails to attract and retain skilled people.
BB&T’s success depends, in large part, on its ability to attract and retain key people. Competition for the
best people in the financial services industry is intense. The Company may not be able to hire the best people or
retain them.
BB&T’s stock price can be volatile.
BB&T’s stock price can fluctuate widely in response to a variety of factors including:
Šactual or anticipated variations in quarterly operating results;
Šrecommendations by securities analysts;
Šnew technology used, or services offered, by competitors;
Šsignificant acquisitions or business combinations, strategic partnerships, joint ventures or capital
commitments by or involving the Company or the Company’s competitors;
Šfailure to integrate acquisitions or realize anticipated benefits from acquisitions;
Šoperating and stock price performance of other companies that investors deem comparable to BB&T;
Šnews reports relating to trends, concerns and other issues in the financial services industry;
Šchanges in government regulations; and
Šgeopolitical conditions such as acts or threats of terrorism or military conflicts.
General market fluctuations, industry factors and general economic and political conditions and events, such
as economic slowdowns or recessions, interest rate changes, credit loss trends, or currency fluctuations could also
cause BB&T’s stock price to decrease regardless of the Company’s operating results.
Operating Subsidiaries
At December 31, 2007, the principal operating subsidiaries of BB&T included the following:
ŠBranch Banking and Trust Company, Winston-Salem, North Carolina
ŠBB&T Bankcard Corporation, Columbus, Georgia
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