PNC Bank 2005 Annual Report Download - page 83

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this settlement and thus the settlement does not
necessarily resolve its investigation.
In addition, the derivative claims asserted by one of
our putative shareholders and any other derivative
demands that may be filed in connection with the
PAGIC transactions are being resolved as a result of
the settlement of the consolidated class action.
• Releases. We are releasing the insurers providing
our Executive Blended Risk insurance coverage
from any further liability to PNC arising out of the
events that gave rise to the consolidated class action,
except for the claims against these insurers (other
than those with whom we have settled) relating to
the $90 million payment to the Restitution Fund. In
addition, PNC and AIG are releasing each other
with respect to all claims between us arising out of
the PAGIC transactions.
We will be responsible for the costs of administering the
settlement and the Restitution Fund and may incur additional
costs in the future in connection with the advancement of
expenses and/or indemnification obligations related to the
subject matter of this lawsuit. We do not expect such costs to
be material.
In connection with industry-wide investigations of practices in
the mutual fund industry including market timing, late day
trading, employee trading in mutual funds and other matters,
several of our subsidiaries have received requests for
information and other inquiries from state and federal
governmental and regulatory authorities. These subsidiaries are
fully cooperating in all of these matters.
In addition to the proceedings or other matters described
above, PNC and persons to whom we may have
indemnification obligations, in the normal course of business,
are subject to various other pending and threatened legal
proceedings in which claims for monetary damages and other
relief are asserted. We do not anticipate, at the present time,
that the ultimate aggregate liability, if any, arising out of such
other legal proceedings will have a material adverse effect on
our financial position. However, we cannot now determine
whether or not any claims asserted against us or others to
whom we may have indemnification obligations, whether in
the proceedings or other matters specifically described above
or otherwise, will have a material adverse effect on our results
of operations in any future reporting period.