SunTrust 2006 Annual Report Download - page 26

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Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.
Our disclosure controls and procedures are designed to reasonably assure that information required to be
disclosed by SunTrust in reports we file or submit under the Exchange Act is accumulated and
communicated to management, and recorded, processed, summarized, and reported within the time
periods specified in the Securities and Exchange Commission’s rules and forms. We believe that any
disclosure controls and procedures or internal controls and procedures, no matter how well conceived
and operated, can provide only reasonable, not absolute, assurance that the objectives of the control
system are met.
These inherent limitations include the realities that judgments in decision-making can be faulty, and that
breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented
by the individual acts of some persons, by collusion of two or more people or by an unauthorized
override of the controls. Accordingly, because of the inherent limitations in our control system,
misstatements due to error or fraud may occur and not be detected.
Item 1B. UNRESOLVED STAFF COMMENTS
There are no unresolved written comments that were received from the Securities and Exchange
Commission’s staff 180 days or more before the end of the Company’s fiscal year relating to the
Company’s periodic or current reports filed under the Securities Exchange Act of 1934.
Item 2. PROPERTIES
The Company’s headquarters is located in Atlanta, Georgia. As of December 31, 2006, SunTrust Bank
owned 995 of its 1,701 full-service banking offices and leased the remaining banking offices. (See Note
8, “Premises and Equipment” to the Consolidated Financial Statements.)
Item 3. LEGAL PROCEEDINGS
On August 25, 2006, the Company received notice from the Securities and Exchange Commission that
the SEC had terminated its formal inquiry into matters concerning the restatement of SunTrust’s
consolidated financial statements for the first and second quarters of 2004 and related matters, and that
the Staff of the SEC recommended to the Commission that no enforcement action be taken against the
Company.
The Company and its subsidiaries are parties to numerous claims and lawsuits arising in the course of
their normal business activities, some of which involve claims for substantial amounts. Although the
ultimate outcome of these suits cannot be ascertained at this time, it is the opinion of management that
none of these matters, when resolved, will have a material effect on the Company’s consolidated results
of operations or financial position.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of shareholders during the quarter ended December 31, 2006.
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