91576--2/27/2009--KEYCORP

related topics

{condition, economic, financial}

{stock, price, share}

{competitive, industry, competition}

{regulation, change, law}

{financial, litigation, operation}

{capital, credit, financial}

{operation, natural, condition}

{debt, indebtedness, cash}

{loss, insurance, financial}

{system, service, information}

{product, market, service}

{acquisition, growth, future}

{provision, law, control}

{personnel, key, retain}

{control, financial, internal}

{loan, real, estate}

Risks Related To Our Business Disruptions in financial markets have affected and may continue to affect KeyCorp. Management s actions may be unable to mitigate the extreme external factors presenting market risk. We are subject to interest rate risk. We are subject to other market risk. Declining asset prices could adversely affect Key. There can be no assurance that the EESA, the American Recovery and Reinvestment Act of 2009, and other initiatives undertaken by the United States government to restore liquidity and stability to the U.S. financial system will help stabilize the U.S. financial system. The soundness of other financial institutions could adversely affect Key. We are subject to credit risk. We are subject to liquidity risk. Various factors may cause our allowance for loan losses to increase. We are subject to operational risk. Our profitability depends significantly on economic conditions in the geographic regions in which we operate. We operate in a highly competitive industry and market areas. We are subject to extensive government regulation and supervision. Our controls and procedures may fail or be circumvented. We rely on dividends from our subsidiaries for most of our funds. Our earnings may be affected by changes in accounting principles and in tax laws. Potential acquisitions may disrupt our business and dilute shareholder value. We may not be able to attract and retain skilled people. Our information systems may experience an interruption or breach in security. We continually encounter technological change. We are subject to claims and litigation. Severe weather, natural disasters, acts of war or terrorism and other external events could significantly impact our business. Risks Associated With Our Common Shares Our issuance of securities to the U.S. Treasury may limit Key s ability to return capital to its shareholders and is dilutive to our Common Shares. If we are unable to redeem such preferred shares, the dividend rate increases substantially after five years. KeyCorp is required to conduct stress tests pursuant to the U.S. Treasury s Capital Assistance Program, and could be required to raise additional capital that would be dilutive to our Common Shares and may limit our ability to return capital to our shareholders. Our share price can be volatile. An investment in our Common Shares is not an insured deposit. Our articles of incorporation and regulations as well as certain banking laws may have an anti-takeover effect. Risks Associated With Our Industry Difficult market conditions have adversely affected the financial services industry, business and results of operations. Financial services companies depend on the accuracy and completeness of information about customers and counterparties.

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91576--2/27/2009--KEYCORP_/NEW/