1390777--2/28/2008--Bank_of_New_York_Mellon

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We may not realize the expected financial benefits from the merger between The Bank of New York Co. and Mellon. We may not realize the expected financial benefits from the acquisition of the corporate trust business of JP Morgan Chase Co. the Acquired Corporate Trust Business ). Other acquisitions also pose integration risks. Risks Related to Our Business Global Trends Our business could be adversely affected if current global trends do not continue or if global business and economic conditions weaken. 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. 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 by non-U.S. jurisdictions. 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. Our controls and procedures may fail or be circumvented. Our information systems may experience an interruption or breach in security. Technology We depend on technology and our 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. 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 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.

Full 10-K form ▸

1390777--2/28/2008--Bank_of_New_York_Mellon_CORP