Wells Fargo 2009 Annual Report Download - page 82

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Table 33: Estimated Impact of Initial 2010 Application of
ASU 2009-16 (FAS 166) and ASU 2009-17 (FAS 167)
by Balance Sheet Classification
(in billions) Assets Liabilities Equity
Net increase (decrease)
Trading assets $ 0.1 — —
Securities available for sale (7.2) — —
Loans, net (1) 26.3 — —
Short-term borrowings — 5.2 —
Long-term debt — 13.8 —
Other 0.4 0.1 —
Cumulative other
comprehensive income — — 0.2
Retained earnings — — 0.3
Total $19.6 19.1 0.5
(1) Includes $1.3 billion of nonaccrual loans, substantially all of which are real
estate 1-4 family first mortgage loans.
We have refined our estimate disclosed in our third
quarter 2009 Form 10-Q due largely to the sale of residential
MBS and the proposed amendment to ASU 2009-17 (FAS 167),
which defers application to certain investment funds. The
cumulative effect of adopting these statements will be recorded
as an adjustment to retained earnings on January 1, 2010.
This Report contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by words
such as “anticipates,” “intends,” “plans,” “seeks,” “believes,”
“estimates,” “expects,” “projects,” “outlook,” “forecast,” “will,”
“may,” “could,” “should,” “can” and similar references to future
periods. Examples of forward-looking statements include, but
are not limited to, statements we make about: future results
of the Company; expectations for consumer and commercial
credit losses, life-of-loan losses, and the sufficiency of our
credit loss allowance to cover future credit losses; the merger
integration of the Company and Wachovia, including expense
savings, merger costs and revenue synergies; the expected
outcome and impact of legal, regulatory and legislative devel-
opments; and the Company’s plans, objectives and strategies.
Forward-looking statements are based on our current
expectations and assumptions regarding our business, the
economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially
from those contemplated by the forward-looking statements.
We caution you, therefore, against relying on any of these
forward-looking statements. They are neither statements
of historical fact nor guarantees or assurances of future
performance. While there is no assurance that any list of
risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially
from those in the forward-looking statements include the
following, without limitation:
• the effect of political and economic conditions and
geopolitical events;
• economic conditions that affect the general economy,
housing prices, the job market, consumer confidence and
spending habits;
• the level and volatility of the capital markets, interest
rates, currency values and other market indices that affect
the value of our assets and liabilities;
• the availability and cost of both credit and capital as well
as the credit ratings assigned to our debt instruments;
• investor sentiment and confidence in the financial markets;
• our reputation;
• the impact of current, pending and future legislation,
regulation and legal actions;
• changes in accounting standards, rules and interpretations;
• mergers and acquisitions, and our ability to integrate them;
• various monetary and fiscal policies and regulations of the
U.S. and foreign governments; and
• the other factors described in “Risk Factors” below.
Any forward-looking statement made by us in this Report
speaks only as of the date on which it is made. Factors or
events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly
update any forward-looking statement, whether as a result of
new information, future developments or otherwise, except as
may be required by law.
Forward-Looking Statements