Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 237

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 237
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 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 which Comerica is highly dependent are subject to security risks and could be susceptible to cyber attacks, such as denial of service attacks, hacking, terrorist activities, social engineering attacks, malware intrusion, or identity theft. Comerica’s business relies on the secure processing, transmission, storage and retrieval of confidential, proprietary and other information in its computer and data management systems and networks, and in the computer and data management systems and networks of third parties. In addition, to access Comerica’s network, products and services, its customers and other third parties may use personal mobile devices or computing devices that are outside of its network environment and are subject to their own cybersecurity risks. Evolving technologies and the increased use of artificial intelligence and automation by third parties further increase security risks for Comerica and third parties on which Comerica depends.

Cyber attacks