Citibank 2010 Annual Report Download - page 147

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an “ownership change” under the Internal Revenue Code and its effect •฀
on Citi’s ability to utilize its deferred tax assets (DTAs) to offset future
taxable income;
the potential negative impact on the value of Citi’s DTAs if corporate tax •฀
rates in the U.S., or certain foreign jurisdictions, are decreased;
the expiration of a provision of the U.S. tax law allowing Citi to defer U.S. •฀
taxes on certain active financial services income and its effect on Citi’s
tax expense;
Citi’s ability to continue to wind down Citi Holdings at the same pace or •฀
level as in the past and its ability to reduce risk-weighted assets and limit
its expenses as a result;
Citi’s ability to continue to control expenses, including through •฀
reductions at Citi Holdings, and to fund investments intended to grow the
operations of Citicorp;
Citi’s ability to hire and retain qualified employees as a result of •฀
regulatory uncertainty regarding compensation practices or otherwise;
Citi’s ability to predict or estimate the outcome or exposure of the •฀
extensive legal and regulatory proceedings to which it is subject, and
the potential for the “whistleblower” provisions of the Financial Reform
Act to further increase Citi’s number of, and exposure to, legal and
regulatory proceedings;
potential future changes in key accounting standards utilized by Citi and •฀
their impact on how Citi records and reports its financial condition and
results of operations;
the accuracy of Citi’s assumptions and estimates, including in •฀
determining credit loss reserves, litigation and regulatory exposures,
mortgage representation and warranty claims and the fair value of certain
assets, used to prepare its financial statements;
Citi’s ability to maintain effective risk management processes •฀
and strategies to protect against losses, which can be increased by
concentration of risk, particularly with Citi’s counter parties in the
financial sector;
a failure in Citi’s operational systems or infrastructure, or those of third •฀
parties; and
Citi’s ability to maintain the value of the Citi brand.•฀