PNC Bank 2007 Annual Report Download - page 13

governing taxation, antitrust regulation and electronic
commerce.
Over the past several years, the SEC and other governmental
agencies have been investigating the mutual fund industry,
including PFPC and other service providers. The SEC has
adopted and proposed various rules, and legislation has been
introduced in Congress, intended to reform the regulation of
this industry. The effect of regulatory reform has, and is likely
to continue to, increase the extent of regulation of the mutual
fund industry and impose additional compliance obligations
and costs on our subsidiaries involved with that industry.
Under provisions of the federal securities laws applicable to
broker-dealers, investment advisers and registered investment
companies and their service providers, a determination by a
court or regulatory agency that certain violations have
occurred at a company or its affiliates can result in fines,
restitution, a limitation of permitted activities, disqualification
to continue to conduct certain activities and an inability to rely
on certain favorable exemptions. Certain types of infractions
and violations can also affect a public company in its timing
and ability to expeditiously issue new securities into the
capital markets. In addition, expansion of activities of a
broker-dealer generally requires approval of FINRA and
regulators may take into account a variety of considerations in
acting upon such applications, including internal controls,
capital, management experience and quality, and supervisory
concerns.
PFPC and BlackRock are also subject to regulation by
appropriate authorities in the foreign jurisdictions in which
they do business.
BlackRock has subsidiaries in securities and related
businesses subject to SEC and FINRA regulation, as described
above. For additional information about the regulation of
BlackRock, we refer you to the discussion under the
“Regulation” section of Item 1 Business in BlackRock’s most
recent Annual Report on Form 10-K, which may be obtained
electronically at the SEC’s website at www.sec.gov.
COMPETITION We are subject to intense competition from
various financial institutions and from non-bank entities that
engage in similar activities without being subject to bank
regulatory supervision and restrictions.
In making loans, our subsidiary banks compete with
traditional banking institutions as well as consumer finance
companies, leasing companies and other non-bank lenders,
and institutional investors including CLO managers, hedge
funds, mutual fund complexes and private equity firms. Loan
pricing, structure and credit standards are under competitive
pressure as lenders seek to deploy capital and a broad range of
borrowers have access to capital markets. Traditional deposit
activities are subject to pricing pressures and customer
migration as a result of intense competition for consumer
investment dollars.
Our subsidiary banks compete for deposits with the following:
• Other commercial banks,
• Savings banks,
• Savings and loan associations,
• Credit unions,
• Treasury management service companies,
• Insurance companies, and
• Issuers of commercial paper and other securities,
including mutual funds.
Our various non-bank businesses engaged in investment
banking and private equity activities compete with the
following:
• Commercial banks,
• Investment banking firms,
• Merchant banks,
• Insurance companies,
• Private equity firms, and
• Other investment vehicles.
In providing asset management services, our businesses
compete with the following:
• Investment management firms,
• Large banks and other financial institutions,
• Brokerage firms,
• Mutual fund complexes, and
• Insurance companies.
The fund servicing business is also highly competitive, with a
relatively small number of providers. Merger, acquisition and
consolidation activity in the financial services industry has
also impacted the number of existing or potential fund
servicing clients and has intensified competition.
We include here by reference the additional information
regarding competition included in the Item 1A Risk Factors
section of this Report.
EMPLOYEES Period-end employees totaled 28,320 at
December 31, 2007 (comprised of 25,480 full-time and 2,840
part-time employees).
SEC REPORTS AND CORPORATE GOVERNANCE
INFORMATION
We are subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (“Exchange
Act”), and, in accordance with the Exchange Act, we file
annual, quarterly and current reports, proxy statements, and
other information with the SEC. Our SEC File Number is
001-09718. You may read and copy this information at the
SEC’s Public Reference Room located at 100 F Street NE,
Room 1580, Washington, D.C. 20549. You can obtain
information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330.
You can also obtain copies of this information by mail from
the Public Reference Section of the SEC, 100 F Street, NE,
Washington, D.C. 20549, at prescribed rates.
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