Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 338

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1A
Chunk 338
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 reduction placed Comerica's or its subsidiaries' credit ratings below investment grade, it could also create obligations or liabilities under the terms of existing arrangements that could increase Comerica's costs under such arrangements. Additionally, a downgrade of the credit rating of any 

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particular security issued by Comerica or its subsidiaries could negatively affect the ability of the holders of that security to sell the securities and the prices at which any such securities may be sold.

•The soundness of other financial institutions could adversely affect Comerica.

Comerica's ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty or other relationships. Comerica has exposure to many different industries and counterparties, and it routinely executes transactions with counterparties in the financial industry, including brokers and dealers, commercial banks, investment banks, mutual and hedge funds, and other institutional clients. As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, have led, and may further lead, to market-wide liquidity problems and could lead to losses or defaults by Comerica or by other institutions. For example, bank failures during the first half of 2023 led to increased scrutiny from regulators and put further financial strain and uncertainty on other financial institutions. Similar bank failures, or the perception thereof, could adversely affect Comerica’s operations. Many of the transactions in which Comerica engages could expose Comerica to credit risk in the event of default of its counterparty or client. In addition, Comerica's credit risk may be impacted when the collateral held by it cannot be monetized or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due to Comerica. Further, volatility in the banking industry may lead to greater reliance on third parties that provide money market or deposit sweep services. Any such losses could adversely affect, possibly materially, Comerica.

TECHNOLOGY RISK

•Comerica faces security risks, including denial of service attacks, hacking, social engineering attacks targeting Comerica’s colleagues, customers and partners, malware intrusion or data corruption attempts, and identity theft, that could result in the disclosure of confidential information, adversely affect Comerica's business or reputation, and create significant legal and financial exposure.

Comerica’s computer systems and network infrastructure and those of third parties on