PNC Bank 2006 Annual Report Download - page 25

behalf of our Incentive Savings Plan and its
participants are being resolved and the class covered
by the settlement has been expanded to include
participants in the Plan. The Department of Labor is
not, however, a party to 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, as a
result of the regulated nature of our business and that of a
number of our subsidiaries, particularly in the banking and
securities areas, we and our subsidiaries are the subject from
time to time of investigations and other forms of regulatory
inquiry, often as part of industry-wide regulatory reviews of
specified activities. Our practice is to cooperate fully with
these investigations and inquiries.
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.
ITEM 4– SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
None during the fourth quarter of 2006.
EXECUTIVE OFFICERS OF THE REGISTRANT Information
regarding each of our executive officers as of February 16,
2007 is set forth below. Executive officers do not have a
stated term of office. Each executive officer has held the
position or positions indicated or another executive position
with the same entity or one of its affiliates for the past five
years unless otherwise indicated below.
Name Age Position with PNC
Year
Employed(1)
James E. Rohr 58 Chairman and Chief
Executive Officer (2)
1972
Joseph C. Guyaux 56 President 1972
William S. Demchak 44 Vice Chairman 2002
William C. Mutterperl 60 Vice Chairman 2002
Timothy G. Shack 56 Executive Vice President
and Chief Information
Officer
1976
Thomas K. Whitford 50 Executive Vice President
and Chief Risk Officer
1983
Michael J. Hannon 50 Senior Vice President
and Chief Credit
Policy Officer
1982
Richard J. Johnson 50 Senior Vice President
and Chief Financial
Officer
2002
Samuel R. Patterson 48 Senior Vice President
and Controller
1986
Helen P. Pudlin 57 Senior Vice President
and General Counsel
1989
John J. Wixted, Jr. 55 Senior Vice President
and Chief Compliance
and Regulatory
Officer
2002
(1) Where applicable, refers to year employed by predecessor company.
(2) Also serves as a director of PNC.
William S. Demchak joined PNC as Vice Chairman and Chief
Financial Officer in September 2002. In August 2005, he took
on additional oversight responsibilities for the Corporation’s
Corporate & Institutional Banking business and continued to
oversee PNC’s asset and liability management and equity
management activities while transitioning the responsibilities
of Chief Financial Officer to Richard J. Johnson. From 1997
to 2002, he served as Global Head of Structured Finance and
Credit Portfolio for J.P. Morgan Chase & Co.
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