Capital One 2014 Annual Report Download - page 54

The Soundness Of Other Financial Institutions Could Adversely Affect Us.
Our ability to engage in routine funding and other transactions could be adversely affected by the stability and
actions of other financial services institutions. Financial services institutions are interrelated as a result of trading,
clearing, servicing, counterparty and other relationships. We have exposure to an increasing number of financial
institutions and counterparties. These counterparties include institutions that may be exposed to various risks over
which we have little or no control, including European or U.S. sovereign debt that is currently or may become in
the future subject to significant price pressure, rating agency downgrade or default risk.
In addition, we routinely execute transactions with counterparties in the financial services industry, including
brokers and dealers, commercial banks, investment banks, mutual and hedge funds and other institutional clients,
resulting in a significant credit concentration with respect to the financial services industry overall. As a result,
defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services
industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or by other
institutions.
Likewise, adverse developments affecting the overall strength and soundness of our competitors, the financial
services industry as a whole and the general economic climate or sovereign debt could have a negative impact on
perceptions about the strength and soundness of our business even if we are not subject to the same adverse
developments. In addition, adverse developments with respect to third parties with whom we have important
relationships also could negatively impact perceptions about us. These perceptions about us could cause our
business to be negatively affected and exacerbate the other risks that we face.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our corporate and banking real estate portfolio consists of approximately 14.9 million square feet of owned or leased
office and retail space, used to support our business. Of this overall portfolio, approximately 10.4 million square
feet of space is dedicated for various corporate office uses and approximately 4.5 million square feet of space is for
bank branches and related offices.
Our 10.4 million square feet of corporate office space consists of approximately 5.5 million square feet of leased
space and 4.9 million square feet of owned space. Our headquarters is located in McLean, Virginia, and is included
in our corporate office space. We maintain office space primarily in Virginia, Texas, Illinois, New York, Louisiana,
Delaware and Maryland.
Our 4.5 million square feet of bank branch and branch/office space consists of approximately 2.2 million square
feet of leased space and 2.3 million square feet of owned space, including branches in locations across New York,
Louisiana, Texas, Maryland, Virginia, New Jersey and District of Columbia. See “Note 8—Premises, Equipment
and Lease Commitments” for information about our premises.
Item 3. Legal Proceedings
The information required by Item 103 of Regulation S-K is included in “Note 20—Commitments, Contingencies,
Guarantees and Others.”
Item 4. Mine Safety Disclosures
Not applicable.
32 Capital One Financial Corporation (COF)