Bank of America 2011 Annual Report Download - page 22

20 Bank of America 2011
of various regulatory agencies, including our ability to comply with
any Basel capital requirements endorsed by U.S. regulators within
any applicable regulatory timelines; the expectation that the
Corporation will meet the Basel III liquidity standards within
regulatory timelines; the revenue impact and the impact on the
value of our assets and liabilities resulting from, and any mitigation
actions taken in response to, the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Financial Reform Act), including, but
not limited to, the Durbin Amendment and the Volcker Rule; our
expectations regarding the December 15, 2010 notice of proposed
rulemaking on the Risk-based Capital Guidelines for Market Risk;
our expectation that our market share of mortgage originations will
continue to decline in 2012; CRES’s ceasing to deliver purchase
money first mortgage products into FNMA mortgage-backed
securities pools and our expectation that this cessation will not have
a material impact on CRES’s business; our expectations regarding
losses in the event of legitimate mortgage insurance rescissions
related to loans held for investment; our expressed intended actions
in the response to repurchase requests with which we do not agree;
the continued reduction of our debt footprint as appropriate through
2013; the estimated range of possible loss from and the impact of
various legal proceedings discussed in “Litigation and Regulatory
Matters” in Note 14 – Commitments and Contingencies to the
Consolidated Financial Statements; our management processes;
credit protection maintained and the effects of certain events on
those positions; our estimates of contributions to be made to
pension plans; our expectations regarding probable losses related
to unfunded lending commitments; our funding strategies including
contingency plans; our trading risk management processes; our
interest rate and mortgage banking risk management strategies
and models; our expressed intention to build capital through
retaining earnings, actively reducing legacy asset portfolios and
implementing other capital-related initiatives, including focusing on
reducing both higher risk-weighted assets and assets currently
deducted or expected to be deducted under Basel III, from capital;
and other matters relating to the Corporation and the securities that
it may offer from time to time. The foregoing is not an exclusive list
of all forward-looking statements the Corporation makes. These
statements are not guarantees of future results or performance and
involve certain risks, uncertainties and assumptions that are difficult
to predict and are often beyond Bank of America’s control. Actual
outcomes and results may differ materially from those expressed
in, or implied by, any of these forward-looking statements.
You should not place undue reliance on any forward-looking
statement and should consider the following uncertainties and risks,
as well as the risks and uncertainties more fully discussed elsewhere
in this report, under Item 1A. Risk Factors of this Annual Report on
Form 10-K, and in any of the Corporation’s subsequent Securities
and Exchange Commission filings: the Corporation’s timing and
determinations regarding any revised comprehensive capital plan
submission and the Federal Reserve’s response; the accuracy and
variability of estimates and assumptions in determining the
expected value of the loss-sharing reinsurance arrangement relating
to the agreement with Assured Guaranty and the total cost of the
agreement to the Corporation; the Corporation’s resolution of certain
representations and warranties obligations with the GSEs and our
ability to resolve the GSEs’ remaining claims; the Corporation’s ability
to resolve its representations and warranties obligations, and any
related servicing, securities, fraud, indemnity or other claims with
monolines, and private-label investors and other investors, including
those monolines and investors from whom the Corporation has not
yet received claims or with whom it has not yet reached any
resolutions; the Corporation’s mortgage modification policies and
related results; the timing and amount of any potential dividend
increase, including any necessary approvals; estimates of the fair
value of certain of the Corporation’s assets and liabilities; the
identification and effectiveness of any initiatives to mitigate the
negative impact of the Financial Reform Act; the Corporation’s ability
to limit liabilities acquired as a result of the Merrill Lynch & Co., Inc.
and Countrywide acquisitions; and decisions to downsize, sell or
close units or otherwise change the business mix of the Corporation.
Forward-looking statements speak only as of the date they are
made, and the Corporation undertakes no obligation to update any
forward-looking statement to reflect the impact of circumstances or
events that arise after the date the forward-looking statement was
made.
Notes to the Consolidated Financial Statements referred to in
the Management’s Discussion and Analysis of Financial Condition
and Results of Operations (MD&A) are incorporated by reference
into the MD&A. Certain prior period amounts have been
reclassified to conform to current period presentation. Throughout
the MD&A, the Corporation uses certain acronyms and
abbreviations which are defined in the Glossary.
Executive Summary
Business Overview
The Corporation is a Delaware corporation, a bank holding company
and a financial holding company. When used in this report, “the
Corporation” may refer to the Corporation individually, the
Corporation and its subsidiaries, or certain of the Corporation’s
subsidiaries or affiliates. Our principal executive offices are
located in Charlotte, North Carolina. Through our banking and
various nonbanking subsidiaries throughout the U.S. and in
international markets, we provide a diversified range of banking
and nonbanking financial services and products through six
business segments: Deposits, Card Services, Consumer Real
Estate Services (CRES), Global Commercial Banking, Global Banking
& Markets (GBAM) and Global Wealth & Investment Management
(GWIM), with the remaining operations recorded in All Other. At
December 31, 2011, the Corporation had $2.1 trillion in assets
and approximately 282,000 full-time equivalent employees.
As of December 31, 2011, we operate in all 50 states, the
District of Columbia and more than 40 countries. Our retail banking
footprint covers approximately 80 percent of the U.S. population
and in the U.S., we serve approximately 57 million consumer and
small business relationships with 5,700 banking centers, 17,750
ATMs, nationwide call centers, and leading online and mobile
banking platforms. We offer industry-leading support to
approximately four million small business owners. We are a global
leader in corporate and investment banking and trading across a
broad range of asset classes serving corporations, governments,
institutions and individuals around the world.