US Bank 2001 Annual Report Download - page 93

General U.S. Bancorp is a multi-state Ñnancial services customers. Its wholly-owned subsidiary U.S. Bancorp Piper
holding company headquartered in Minneapolis, Minnesota JaÅray Inc. engages in equity and Ñxed income trading
and was created by the acquisition by Firstar Corporation activities and oÅers investment banking and underwriting
of the former U.S. Bancorp of Minneapolis, Minnesota. services to corporate and public sector customers. This non-
The merger was completed on February 27, 2001, and the bank subsidiary also provides brokerage products, including
combined company retained the U.S. Bancorp name. securities, mutual funds and annuities, and insurance
U.S. Bancorp was incorporated in Delaware in 1929 and products to consumers and regionally based businesses
operates as a Ñnancial holding company and a bank holding through a network of 123 brokerage oÇces.
company under the Bank Holding Company Act of 1956. On a full-time equivalent basis, employment during
U.S. Bancorp provides a full range of Ñnancial services, 2001 averaged a total of 50,461 employees.
including lending and depository services, cash management, Competition The commercial banking business is highly
foreign exchange and trust and investment management competitive. Subsidiary banks compete with other
services. It also engages in credit card services, merchant commercial banks and with other Ñnancial institutions,
and automated teller machine (""ATM'') processing, including savings and loan associations, mutual savings
mortgage banking, insurance, brokerage, leasing and banks, Ñnance companies, mortgage banking companies,
investment banking. credit unions and investment companies. In recent years,
U.S. Bancorp's banking subsidiaries are engaged in the competition has increased from institutions not subject to
general banking business, principally in domestic markets. the same regulatory restrictions as domestic banks and bank
The subsidiaries range in size from $312 million to holding companies.
$108 billion in deposits and provide a wide range of
products and services to individuals, businesses, institutional Government Policies The operations of the Company's
organizations, governmental entities and other Ñnancial various operating units are aÅected by state and federal
institutions. Commercial and consumer lending services are legislative changes and by policies of various regulatory
principally oÅered to customers within the Company's authorities, including those of the numerous states in which
domestic markets, to domestic customers with foreign they operate, the United States and foreign governments.
operations and within certain niche national venues. These policies include, for example, statutory maximum
Lending services include traditional credit products as well legal lending rates, domestic monetary policies of the Board
as credit card services, Ñnancing and import/export trade, of Governors of the Federal Reserve System, United States
asset-backed lending, agricultural Ñnance and other Ñscal policy, international currency regulations and
products. Leasing products are oÅered through non-bank monetary policies, and capital adequacy and liquidity
subsidiaries. Depository services include checking accounts, constraints imposed by bank regulatory agencies.
savings accounts and time certiÑcate contracts. Ancillary
Supervision and Regulation U.S. Bancorp is a registered
services such as foreign exchange, treasury management and bank holding company and Ñnancial holding company
receivable lock-box collection are provided to corporate under the Bank Holding Company Act of 1956 (the ""Act'')
customers. U.S. Bancorp's bank and trust subsidiaries and is subject to the supervision of, and regulation by, the
provide a full range of Ñduciary services for individuals, Board of Governors of the Federal Reserve System (the
estates, foundations, business corporations and charitable ""Board'').
organizations. Under the Act, a Ñnancial holding company may engage
Banking and investment services are provided through a in banking, managing or controlling banks, furnishing or
network of 2,147 banking oÇces principally operating in performing services for banks it controls, and conducting
24 states in the Midwest and West. The Company operates other Ñnancial activities. U.S. Bancorp must obtain the prior
a network of 4,904 branded ATMs and provides 24-hour, approval of the Board before acquiring more than 5 percent
seven days-a-week telephone customer service. Mortgage of the outstanding shares of another bank or bank holding
banking services are provided through banking oÇces and company, and must provide notice to, and in some
loan production oÇces throughout the Company's markets. situations obtain the prior approval of, the Board in
The Company is one of the largest providers of Visa@
connection with engaging in, or acquiring more than
corporate and purchasing card services and corporate trust 5 percent of the outstanding shares of a company engaged
services in the United States. Its wholly owned subsidiary in, a new Ñnancial activity.
Nova Information Systems, Inc. provides merchant Under the Act, as amended by the Riegle-Neal
processing services directly to merchants and through a Interstate Banking and Branching EÇciency Act of 1994
network of banking aÇliations. (the ""Interstate Act''), U.S. Bancorp may acquire banks
U.S. Bancorp's other non-banking subsidiaries oÅer a throughout the United States, subject only to state or
variety of products and services to the Company's
U.S. Bancorp 91