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Corporate Trust - Current Issues Update

Corporate Trust - Current Issues Update. Terry McRoberts. EVP, Corporate Trust Services – Regional Management & National Sales. March 28, 2012. 1. Assets U.S. Rank Company $Billions 1. J.P. Morgan $2,289 2. Bank of America $2,220 3. Citigroup $1,936

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Corporate Trust - Current Issues Update

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  1. Corporate Trust - Current Issues Update Terry McRoberts EVP, Corporate Trust Services – Regional Management & National Sales March 28, 2012 1

  2. Assets U.S. Rank Company $Billions 1. J.P. Morgan $2,289 2. Bank of America $2,220 3. Citigroup $1,936 4. Wells Fargo $1,305 5. U.S. Bancorp $ 330 6. Bank of NY Mellon $ 304 7. PNC $ 269 8. SunTrust $ 173 9. BB&T $ 168 Regions $ 130 Source: company reports & FactSet Assets as of September 30, 2011; Market Value as of October 25, 2011 Market Value U.S. Rank Company $Billions 1. Wells Fargo $135 2. J.P. Morgan $131 3. Citigroup $ 90 4. Bank of America $ 65 5. U.S. Bancorp $ 48 6. PNC $ 28 7. Bank of NY Mellon $ 26 8. BB&T $ 16 9. Fifth Third $ 11 SunTrust $ 10 US Banks 2

  3. FIRMS Who is in the Business? • Municipal Tax-Exempt Bond Market • Corporate Taxable Bond Market • Structured Finance and Bond Market • Business Escrow Services 3

  4. Municipal Tax-Exempt Bond Trustee Trustee Bank2011 Deals # of DealsP/V ($ billions)Market Share (#) 1. Bank of New York Mellon 549 $39.1 29.6% 2. US Bank 480 $26.6 25.9% 3. Wells Fargo Bank 213 $11.8 11.5% 4. UMB Bank 73 $ 0.8 3.9% 5. Regions Bank 71 $ 3.2 3.8% 6. M&T/Wilmington Trust Bank 59 $ 3.3 3.2% 7. Zions Bank 32 $ 0.8 1.7% 8. Bank of Oklahoma 32 $ 0.6 1.7% 9. Deutsche Bank 25 $ 1.3 1.4% 10. Union Bank 25 $ 0.7 1.4% Total Top 10 1559 $ 88.2 84.1% Source: Thompson Reuters Third Quarter 2011 4

  5. Corporate Taxable Bond Trustee Trustee Bank2011 Deals # of DealsP/V ($ billions)Market Share (#) 1. Bank of New York Mellon 375 $281 44.6% 2. US Bank 146 $ 82 17.4% 3. Wells Fargo Bank 134 $ 71 15.9% 4. Deutsche Bank 82 $ 66 9.8% 5. M&T/Wilmington Trust Bank 66 $ 39 7.9% 6. Law Debenture Bank 13 $ 15 1.5% 7. Citibank 7 $ 7 0.8% 8. Mitsubishi UFJ Bank 8 $ 7 0.9% 9. HSBC Bank 6 $ 6 0.7% 10. UMB Bank 4 $ 3 0.5% Total Top 10 841 $ 577 100% Source: Thompson Reuters Third Quarter 2011 5

  6. Structured Finance Bond Trustee Trustee Bank2011 Deals # of DealsP/V ($ billions)Market Share (#) 1. Bank of New York Mellon 64 $41 29.6% 2. Deutsche Bank 51 $29 14.9% 3. Wells Fargo Bank 57 $25 21.1% 4. US Bank 41 $21 17.6% 5. Citibank 20 $13 9.6% 6. Law Debenture Bank 1 $ 4 2.7% 7. Perpetual Trustee 3 $ 2 1.3% 8. State Street 3 $ 2 1.3% 9. M&T/Wilmington Trust 2 $ 2 1.3% 10. Bank of Oklahoma 1 $0.2 0.6% Total Top 10 243 $ 141 100% Source: Thompson Reuters Third Quarter 2011 6

  7. Market Issues Coming into 2012 7

  8. Market Issues Observations Municipal Credit Expirations • Basel III impact on the availability and price of credit • Record volume of expiring bank credit facilities have not taxed the market as expected • Issuers have been successful in extending expiring credit facilities or restructuring outstanding VRDNs • 62% facilities extended* • 15% facilities substituted* • 22% restructured (5% with direct bank loans)* $112 $65 $49 $42 Source: Thomson Reuters *Moody’s Investor Service 9/15/2011 8 8

  9. Impacts of the Changing Regulatory Landscape “A Rocky Road Ahead” 9

  10. ABA CTC OVERVIEW • SEC Rule 17Ad-16 • SEC Rule 17g – 7 • SEC Rule 15Ga – 1 • Reputation Risk • Municipal Advisors • Municipal Disclosure - EMMA 10

  11. ABA CTC OVERVIEW • Foreclosure Issues • Basel III Liquidity Impact • Missing Security Holders • Moody’s Appointment of Agents Issue • Cost Basis Reporting 11

  12. Bank Audit Corporate Trust Compliance SQRM Self Assessment OCC Teams Federal Reserve Bank SEC Audits Corporate Trust Audit Environment 12

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