SunTrust 2011 Annual Report Download - page 17
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PART I
Item 1. BUSINESS
General
The Company, one of the nation’s largest commercial banking organizations, is a diversified financial services holding company
whose businesses provide a broad range of financial services to consumer and corporate clients. SunTrust was incorporated in
1984 under the laws of the State of Georgia. The principal executive offices of the Company are located in the SunTrust Plaza,
Atlanta, Georgia 30308.
Additional information relating to our businesses and our subsidiaries is included in the information set forth in Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Note 21, “Business Segment
Reporting,” to the Consolidated Financial Statements in Item 8 of this Form 10-K.
Primary Market Areas
Through its principal subsidiary, SunTrust Bank, the Company offers a full line of financial services for consumers and businesses
including deposit, credit, and trust and investment services. Additional subsidiaries provide mortgage banking, asset management,
securities brokerage, capital market services, and credit-related insurance. SunTrust operates primarily within Florida, Georgia,
Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia and enjoys strong market positions
in these markets. SunTrust provides clients with a selection of branch-based and technology-based banking channels, including
the internet, ATMs, and twenty-four hour telebanking. SunTrust’s client base encompasses a broad range of individuals and families,
businesses, institutions, and governmental agencies. Within its geographic footprint, SunTrust operated the following business
segments during 2011 and 2010, with the remainder in Corporate Other and Treasury: Retail Banking, Diversified Commercial
Banking, CRE, CIB, Mortgage and W&IM.
Acquisition and Disposition Activity
As part of its operations, the Company regularly evaluates the potential acquisition of and holds discussions with various financial
institutions and other businesses of a type eligible for financial holding company ownership or control. Additionally, the Company
regularly analyzes the values of and may submit bids for customer-based funds and other liabilities and assets of such financial
institutions and other businesses. The Company may also consider the potential disposition of certain of its assets, branches,
subsidiaries, or lines of businesses.
During 2011, 2010, and 2009, the Company's W&IM business acquired the assets and liabilities of an asset manager, sold $14.1
billion of managed money market funds to Federated Investors, Inc., and acquired three family office enterprises, respectively.
Additional information on these and other acquisitions and dispositions is included in Note 2, “Acquisitions/Dispositions,” to the
Consolidated Financial Statements in Item 8, which are incorporated herein by reference.
Government Supervision and Regulation
As a bank holding company and a financial holding company, the Company is subject to the regulation and supervision of the
Federal Reserve. The Company's principal banking subsidiary, SunTrust Bank, is a Georgia state chartered bank with branches in
Georgia, Florida, the District of Columbia, Maryland, Virginia, North Carolina, South Carolina, Tennessee, Alabama, West Virginia,
Mississippi, and Arkansas. SunTrust Bank is a member of the Federal Reserve System and is regulated by the Federal Reserve,
the FDIC, and the Georgia Department of Banking and Finance.
The Company's banking subsidiary is subject to various requirements and restrictions under federal and state law including
requirements to maintain cash reserves against deposits, restrictions on the types and amounts of loans that may be made and the
interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that
may be offered. Various consumer laws and regulations also affect the operations of SunTrust Bank and its subsidiaries. In addition
to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve as it attempts to
control the money supply and credit availability in order to influence the economy.
The Dodd-Frank Act, which was enacted in 2010, imposes new regulatory requirements and oversight over banks and other
financial institutions in a number of ways, among which are (i) creating the CFPB to regulate consumer financial products and
services; (ii) creating the Financial Stability Oversight Council to identify and impose additional regulatory oversight on large
financial firms; (iii) granting orderly liquidation authority to the FDIC for the liquidation of financial corporations that pose a risk