Citibank 2010 Annual Report Download - page 146

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FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-K, including but not limited to statements
included within the Management’s Discussion and Analysis of Financial
Condition and Results of Operations, are “forward-looking statements”
within the meaning of the rules and regulations of the SEC. Generally,
forward-looking statements are not based on historical facts but instead
represent only Citigroup’s and management's beliefs regarding future
events. Such statements may be identified by words such as believe, expect,
anticipate, intend, estimate, may increase, may fluctuate, and similar
expressions, or future or conditional verbs such as will, should, would
and could.
Such statements are based on management's current expectations and
are subject to uncertainty and changes in circumstances. Actual results may
differ materially from those included in these statements due to a variety of
factors, including without limitation the precautionary statements included
in this Form 10-K, the factors listed and described under “Risk Factors”
above, and the factors described below:
the impact of the ongoing implementation of the Dodd-Frank Wall Street •฀
Reform and Consumer Protection Act of 2010 (Financial Reform Act)
on Citi’s business activities and practices, costs of operations and overall
results of operations;
the impact of increases in FDIC insurance premiums on Citi’s earnings •฀
and competitive position, in the U.S. and globally;
Citi’s ability to maintain, or the increased cost of maintaining, adequate •฀
capital in light of changing regulatory capital requirements pursuant
to the Financial Reform Act, the capital standards adopted by the Basel
Committee on Banking Supervision (including as implemented by U.S.
regulators) or otherwise;
disruption to, and potential adverse impact to the results of operations of, •฀
certain areas of Citi’s derivatives business structures and practices as result
of the central clearing, exchange trading and “push-out” provisions of
the Financial Reform Act;
the potential negative impacts to Citi of regulatory requirements aimed •฀
at facilitation of the orderly resolution of large financial institutions, as
required under the Financial Reform Act;
risks arising from Citi’s extensive operations outside the U.S., including •฀
compliance with conflicting or inconsistent regulations and Citi’s ability
to continue to compete effectively with competitors who may face fewer
regulatory constraints;
the impact of recently enacted and potential future regulations on Citi’s •฀
ability and costs to participate in securitization transactions;
a reduction in Citi’s or its subsidiaries’ credit ratings, including in •฀
response to the passage of the Financial Reform Act, and the potential
impact on Citi’s funding and liquidity, borrowing costs and access to the
capital markets, among other factors;
the impact of restrictions imposed on proprietary trading and funds-•฀
related activities by the Financial Reform Act, including the potential
negative impact on Citi’s market-making activities and its global
competitive position with respect to its trading activities;
increased compliance costs and possible changes to Citi’s practices and •฀
operations with respect to a number of its U.S. Consumer businesses as
a result of the Financial Reform Act and the establishment of the new
Bureau of Consumer Financial Protection;
the continued impact of The Credit Card Accountability Responsibility and •฀
Disclosure Act of 2009 as well as other regulatory requirements on Citi’s
credit card businesses and business models;
the exposure of Citi, as originator of residential mortgage loans, sponsor •฀
of residential mortgage-backed securitization transactions or servicer of
such loans, or in such transactions, or in other capacities, to government
sponsored enterprises (GSEs), investors, mortgage insurers, or other third
parties as a result of representations and warranties made in connection
with the transfer or securitization of such loans;
the outcome of inquiries and proceedings by governmental entities, or •฀
judicial and regulatory decisions, regarding practices in the residential
mortgage industry, including among other things the processes followed
for foreclosing residential mortgages and mortgage transfer and
securitization processes, and any potential impact on Citi’s foreclosures
in process;
the continued uncertainty about the sustainability and pace of the •฀
economic recovery, including continued disruption in the global financial
markets and the potential impact on consumer credit, on Citi’s businesses
and results of operations;
Citi’s ability to maintain adequate liquidity in light of changing liquidity •฀
standards in the U.S. or abroad, and the impact of maintaining adequate
liquidity on Citi’s net interest margin (NIM);