TCF Bank 2010 Annual Report Download - page 63

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2010 Form 10-K
Legislative, Legal and Regulatory Developments
Federal and state legislation imposes numerous legal
and regulatory requirements on financial institutions.
Future legislative or regulatory change, or changes in
enforcement practices or court rulings, may have a dramatic
and potentially adverse impact on TCF and its bank and
other subsidiaries. TCF expects that the Patient Protection
and Affordable Care Act, as amended by the Health Care
and Education Reconciliation Act, will not have a significant
effect on future results.
Forward-Looking Information
This annual report on Form 10-K and other reports issued
by the Company, including reports filed with the SEC,
may contain “forward-looking” statements that deal
with future results, plans or performance. In addition,
TCF’s management may make such statements orally to
the media, or to securities analysts, investors or others.
Forward-looking statements deal with matters that do not
relate strictly to historical facts. TCF’s future results may
differ materially from historical performance and forward-
looking statements about TCF’s expected financial results or
other plans and are subject to a number of risks and uncer-
tainties. These include, but are not limited to the following:
Adverse Economic or Business Conditions, Credit
and Other Risks Continued or deepening deterioration
in general economic and banking industry conditions, or
continued increases in unemployment in TCF’s primary
banking markets; adverse economic, business and com-
petitive developments such as shrinking interest margins,
deposit outflows, deposit account attrition, or an inabil-
ity to increase the number of deposit accounts; adverse
changes in credit and other risks posed by TCF’s loan, lease,
investment, and securities available for sale portfolios,
including continuing declines in commercial or residential
real estate values or changes in the allowance for loan
and lease losses dictated by new market conditions or
regulatory requirements; interest rate risks resulting from
fluctuations in prevailing interest rates or other factors
that result in a mismatch between yields earned on TCF’s
interest-earning assets and the rates paid on its deposits
and borrowings; and foreign currency exchange risks.
Earnings/Capital Constraints, Liquidity Risks
Limitations on TCF’s ability to pay dividends or to increase
dividends in the future because of financial performance
deterioration, regulatory restrictions or limitations;
increased deposit insurance premiums, special assessments
or other costs related to adverse conditions in the banking
industry, the economic impact on banks of the Dodd-Frank
Act and Emergency Economic Stabilization Act of 2008, as
amended (“EESA”), and other regulatory reform legislation;
the impact of financial regulatory reform, including the
phase out of trust preferred securities in tier 1 capital called
for by the Act, or additional capital, leverage, liquidity and
risk management requirements or changes in the composi-
tion of qualifying regulatory capital; adverse changes in
securities markets directly or indirectly affecting TCF’s
ability to sell assets or to fund its operations; diminished
unsecured borrowing capacity resulting from TCF credit rating
downgrades and unfavorable conditions in the credit markets
that restrict or limit various funding sources; costs associ-
ated with new regulatory requirements or interpretive
guidance relating to liquidity.
Legislative and Regulatory Requirements New con-
sumer protection and supervisory requirements, including
the Dodd-Frank Act’s creation of a new consumer protection
bureau and limits on Federal preemption for state laws
that could be applied to national banks; the imposition
of requirements with an adverse impact relating to TCF’s
lending, loan collection and other business activities as
a result of the EESA and the Dodd-Frank Act, or other
legislative or regulatory developments such as mortgage
foreclosure moratorium laws or imposition of underwriting
or other limitations that impact the ability to use certain
variable-rate products; reduction of interchange revenue
from debit card transactions resulting from the so-called
Durbin Amendment to the Dodd-Frank Act, which limits
debit card interchange fees to amounts that will only
allow issuers to recover incremental costs of authorization,
clearance and settlement of debit card transactions,
plus possibly some costs relating to fraud prevention;
impact of legislative, regulatory or other changes
affecting customer account charges and fee income;
changes to bankruptcy laws which would result in the loss
of all or part of TCF’s security interest due to collateral
value declines (so-called “cramdown” provisions); any
material failure of TCF to comply with the terms of its
consent order with the Office of the Comptroller of the
Currency relating to TCF’s Bank Secrecy Act compliance,
which may result in regulatory enforcement action
including monetary penalties; increased health care costs