SunTrust 2007 Annual Report Download - page 24

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Depending on the nature and magnitude of any transactions we enter into with off-balance sheet entities, accounting rules
may require us to consolidate the financial results of these entities with our financial results.
We are subject to market risk associated with our asset management and commercial paper conduit businesses.
During 2007, we recorded approximately $525 million in market valuation losses related to securities that we purchased from
certain money market funds managed by our subsidiary Trusco Capital Management, Inc. as well as Three Pillars Funding,
LLC (“Three Pillars”), a multi-seller commercial paper conduit sponsored by us. At the time of purchase, these securities
were predominantly AAA or AA-rated, residential mortgage-backed securities, structured investment vehicle (“SIVs”)
securities, and corporate and consumer collateralized debt obligations. We cannot assure you that we will not sustain
additional losses in the future related to these securities or the purchase of similar securities. The value of such securities may
be effected by, among other things, a lack of liquidity in the market for these securities, deterioration in the credit quality of
the underlying collateral, risks associated with the financial guarantees insuring the securities, and/or the fact that the
respective investment vehicle enters restructuring proceedings. Such occurrences may materially adversely affect our
financial condition, capital adequacy and results of operations.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
The Company’s headquarters is located in Atlanta, Georgia. As of December 31, 2007, SunTrust Bank owned 703 of its
1,682 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
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.
Please also refer to our discussion in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial
Statements of certain litigation related accruals which we made during the quarter ended December 31, 2007 related to our
ownership interest in Visa, Inc.
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, 2007.
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