1390777--2/26/2010--Bank_of_New_York_Mellon

related topics

{regulation, change, law}

{condition, economic, financial}

{loss, insurance, financial}

{personnel, key, retain}

{capital, credit, financial}

{system, service, information}

{competitive, industry, competition}

{product, liability, claim}

{acquisition, growth, future}

{debt, indebtedness, cash}

{operation, natural, condition}

{financial, litigation, operation}

{property, intellectual, protect}

{control, financial, internal}

{operation, international, foreign}

{provision, law, control}

{stock, price, share}

Current uncertainties in the global financial markets and the economy generally may materially adversely affect our business and results of operations. Levels of market volatility have been unprecedented. We may experience further write-downs of our financial instruments and other losses related to volatile and illiquid market conditions impairment of our instruments could harm our earnings. Competition We are subject to intense competition in all aspects of our business, which could negatively affect our ability to maintain or increase our profitability. Dependence on fee-based business We are dependent on fee-based business for a substantial majority of our revenue and our fee-based revenues could be adversely affected by a slowing in capital market activity, significant declines in market values or negative trends in savings rates or in individual investment preferences. Our fee-based revenues could be adversely affected by a stable exchange-rate environment or decreased cross-border investing activity. Our ability to retain existing business and obtain new business is dependent on our consistent execution of the fee-based services we perform. Strategic acquisitions may pose integration risks. The soundness of other financial institutions could adversely affect us. Any material reduction in our credit rating could increase the cost of our funding from the capital markets. Interest Rate Environment Our revenues and profits are sensitive to changes in interest rates. Capital Adequacy We are subject to capital adequacy guidelines and, if we fail to meet these guidelines, our financial condition would be adversely affected. Access to Capital Markets If our ability to access the capital markets is diminished, our business may be adversely affected. We are subject to extensive government regulation and supervision, including regulation and supervision in non-U.S. jurisdictions. Recent legislative and regulatory initiatives may significantly impact our financial condition, operations, capital position and ability to pursue business opportunities. Monetary and Other Governmental Policies Our business is influenced by monetary and other governmental policies. Operational Risk We are exposed to operational risk as a result of providing certain services, which could adversely affect our results of operations. Reputational and Legal Risk Our business may be negatively affected by adverse publicity, regulatory actions or litigation with respect to us, other well-known companies and the financial services industry generally. Our controls and procedures may fail or be circumvented. Our information systems may experience an interruption or breach in security. Technology We depend on our technology and intellectual property; if third parties misappropriate our intellectual property, our business may be adversely affected. Acts of Terrorism Acts of terrorism may have a negative impact on our business. Our subsidiaries are subject to claims and litigation pertaining to fiduciary responsibility. New lines of business or new products and services may subject us to additional risks. We may not be able to attract and retain skilled people. Tax Laws and Regulations Tax law changes or challenges to our tax positions with respect to historical transactions may adversely affect our net income, effective tax rate and our overall results of operations and financial condition. Accounting Principles Changes in accounting standards could have a material impact on our financial statements. Credit Reserves We could incur income statement charges if our reserves for credit losses, including loan reserves, are inadequate. Holding Company We are a holding company, and as a result, are dependent on dividends from our subsidiaries, including our subsidiary banks, to meet our obligations, including our obligations with respect to our debt securities, and to provide funds for payment of dividends to our shareholders. Limits on common stock dividends. Anti-takeover provisions could negatively impact our stockholders.

Full 10-K form ▸

1390777--2/26/2010--Bank_of_New_York_Mellon_CORP