SunTrust 2014 Annual Report Download - page 181

Notes to Consolidated Financial Statements, continued
158
stayed pending a decision in the Edwards case also. In June 2012,
the U.S. Supreme Court withdrew its grant of certiorari in
Edwards and, as a result, the stays in these cases were lifted.
SunTrust has filed a motion to dismiss the Thurmond case which
was granted in part and denied in part, allowing limited discovery
surrounding the argument that the statute of limitations for
certain claims should be equitably tolled. Discovery on this
matter is underway. The Acosta plaintiffs have voluntarily
dismissed their case.
United States Attorney’s Office for the Southern District of
New York Foreclosure Expense Investigation
STM has been cooperating with the United States Attorney's
Office for the Southern District of New York (the "Southern
District") in a broad-based industry investigation regarding
claims for foreclosure-related expenses charged by law firms in
connection with the foreclosure of loans guaranteed or insured
by Fannie Mae, Freddie Mac, or FHA. The investigation relates
to a private litigant qui tam lawsuit filed under seal and remains
in early stages. The Southern District has not yet advised STM
how it will proceed in this matter. The Southern District and STM
engaged in dialogue regarding potential resolution of this matter
as part of the National Mortgage Servicing Settlement, but were
unable to reach agreement. The Company's financial statements
at December 31, 2014 reflect the Company's current estimate of
probable losses associated with the matter.
NOTE 20 - BUSINESS SEGMENT REPORTING
The Company has three segments used to measure business
activity: Consumer Banking and Private Wealth Management,
Wholesale Banking, and Mortgage Banking, with functional
activities included in Corporate Other. The business segments
are determined based on the products and services provided or
the type of client served, and they reflect the manner in which
financial information is evaluated by management. The
following is a description of the segments and their composition.
The Consumer Banking and Private Wealth Management
segment is made up of two primary businesses: Consumer
Banking and Private Wealth Management.
• Consumer Banking provides services to consumers and
branch-managed small business clients through an
extensive network of traditional and in-store branches,
ATMs, the internet (www.suntrust.com), mobile banking,
and telephone (1-800-SUNTRUST). Financial products and
services offered to consumers and small business clients
include deposits, home equity lines and loans, credit lines,
indirect auto, student lending, bank card, other lending
products, and various fee-based services. Consumer
Banking also serves as an entry point for clients and provides
services for other lines of business.
• PWM provides a full array of wealth management products
and professional services to both individual and institutional
clients including loans, deposits, brokerage, professional
investment management, and trust services to clients
seeking active management of their financial resources.
Institutional clients are served by the IIS business. Discount/
online and full-service brokerage products are offered to
individual clients through STIS. PWM also includes
GenSpring, which provides family office solutions to ultra-
high net worth individuals and their families. Utilizing
teams of multi-disciplinary specialists with expertise in
investments, tax, accounting, estate planning, and other
wealth management disciplines, GenSpring helps families
manage and sustain wealth across multiple generations.
The Wholesale Banking segment includes the following four
businesses:
• CIB delivers comprehensive capital markets solutions,
including advisory, capital raising, and financial risk
management, with the first goal of best serving the needs of
both public and private companies in the Wholesale Banking
segment and PWM business. Investment Banking and
Corporate Banking teams within CIB serve clients across
the nation, offering a full suite of traditional banking and
investment banking products and services to companies
with annual revenues typically greater than $150 million.
Investment Banking serves select industry segments
including consumer and retail, energy, financial services,
healthcare, industrials, media and communications, real
estate, and technology. Corporate Banking serves clients
across diversified industry sectors based on size,
complexity, and frequency of capital markets issuance. Also
managed within CIB is the Equipment Finance Group,
which provides lease financing solutions (through SunTrust
Equipment Finance & Leasing).
• Commercial & Business Banking offers an array of
traditional banking products, including cash management
services and investment banking solutions via STRH to
commercial clients (generally those with average revenues
$1 million to $150 million), not-for-profit organizations, and
governmental entities, as well as auto dealer financing (floor
plan inventory financing). Also managed within
Commercial & Business Banking is the Premium
Assignment Corporation, which creates corporate insurance
premium financing solutions.
• Commercial Real Estate provides a full range of financial
solutions for commercial real estate developers, owners, and
investors, including construction, mini-perm, and
permanent real estate financing as well as tailored financing
and equity investment solutions via STRH, primarily
through the REIT group focused on Real Estate Investment
Trusts. The Institutional Real Estate team targets
relationships with institutional advisors, private funds, and
insurance companies and the Regional team focuses on real
estate owners and developers through a regional delivery
structure. Commercial Real Estate also offers tailored
financing and equity investment solutions for community
development and affordable housing projects through
SunTrust Community Capital, with particular expertise in
Low Income Housing Tax Credits and New Market Tax
Credits.