Wells Fargo 2014 Annual Report Download - page 116

Forward-Looking Statements (continued)
standards) and our ability to generate capital internally or
raise capital on favorable terms;
• financial services reform and other current, pending or
future legislation or regulation that could have a negative
effect on our revenue and businesses, including the Dodd-
Frank Act and other legislation and regulation relating to
bank products and services;
• the extent of our success in our loan modification efforts, as
well as the effects of regulatory requirements or guidance
regarding loan modifications;
• the amount of mortgage loan repurchase demands that we
receive and our ability to satisfy any such demands without
having to repurchase loans related thereto or otherwise
indemnify or reimburse third parties, and the credit quality
of or losses on such repurchased mortgage loans;
• negative effects relating to our mortgage servicing and
foreclosure practices, including our obligations under the
settlement with the Department of Justice and other federal
and state government entities, as well as changes in industry
standards or practices, regulatory or judicial requirements,
penalties or fines, increased servicing and other costs or
obligations, including loan modification requirements, or
delays or moratoriums on foreclosures;
• our ability to realize our efficiency ratio target as part of our
expense management initiatives, including as a result of
business and economic cyclicality, seasonality, changes in
our business composition and operating environment,
growth in our businesses and/or acquisitions, and
unexpected expenses relating to, among other things,
litigation and regulatory matters;
• the effect of the current low interest rate environment or
changes in interest rates on our net interest income, net
interest margin and our mortgage originations, mortgage
servicing rights and mortgages held for sale;
• a recurrence of significant turbulence or disruption in the
capital or financial markets, which could result in, among
other things, reduced investor demand for mortgage loans, a
reduction in the availability of funding or increased funding
costs, and declines in asset values and/or recognition of
other-than-temporary impairment on securities held in our
investment securities portfolio;
• the effect of a fall in stock market prices on our investment
banking business and our fee income from our brokerage,
asset and wealth management businesses;
Risk Factors
• reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory
violations and legal actions;
• a failure in or breach of our operational or security systems
or infrastructure, or those of our third party vendors or
other service providers, including as a result of cyber
attacks;
• the effect of changes in the level of checking or savings
account deposits on our funding costs and net interest
margin;
• fiscal and monetary policies of the Federal Reserve Board;
and
• the other risk factors and uncertainties described under
“Risk Factors” in this Report.
In addition to the above factors, we also caution that the
amount and timing of any future common stock dividends or
repurchases will depend on the earnings, cash requirements and
financial condition of the Company, market conditions, capital
requirements (including under Basel capital standards),
common stock issuance requirements, applicable law and
regulations (including federal securities laws and federal
banking regulations), and other factors deemed relevant by the
Company’s Board of Directors, and may be subject to regulatory
approval or conditions.
For more information about factors that could cause actual
results to differ materially from our expectations, refer to our
reports filed with the Securities and Exchange Commission,
including the discussion under “Risk Factors” in this Report, as
filed with the Securities and Exchange Commission and available
on its website at www.sec.gov.
Any forward-looking statement made by us 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.
An investment in the Company involves risk, including the
possibility that the value of the investment could fall
substantially and that dividends or other distributions on the
investment could be reduced or eliminated. We discuss below
risk factors that could adversely affect our financial results and
condition, and the value of, and return on, an investment in the
Company.
RISKS RELATED TO THE ECONOMY, FINANCIAL
MARKETS, INTEREST RATES AND LIQUIDITY
As one of the largest lenders in the U.S. and a provider
of financial products and services to consumers and
businesses across the U.S. and internationally, our
financial results have been, and will continue to be,
materially affected by general economic conditions,
particularly unemployment levels and home prices in
the U.S., and a deterioration in economic conditions or
in the financial markets may materially adversely affect
our lending and other businesses and our financial
results and condition. We generate revenue from the
interest and fees we charge on the loans and other products and
services we sell, and a substantial amount of our revenue and
earnings comes from the net interest income and fee income that
we earn from our consumer and commercial lending and
banking businesses, including our mortgage banking business
where we currently are the largest mortgage originator in the
U.S. These businesses have been, and will continue to be,
materially affected by the state of the U.S. economy, particularly
unemployment levels and home prices. Although the U.S.
economy has continued to gradually improve from the depressed
levels of 2008 and early 2009, economic growth has been slow
and uneven. In addition, the negative effects and continued
uncertainty stemming from U.S. fiscal and political matters,
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