Datatreasury Corporation v. Wells Fargo & Company et al

Filing 209

RESPONSE to Motion re #83 MOTION to Dismiss Plaintiff's Complaint Pursuant to Fed. R. Civ. P. 12(b)(2) and Brief in Support Thereof (UnionBanCal) filed by Datatreasury Corporation. (Attachments: #1 Exhibit #2 Exhibit #3 Exhibit #4 Exhibit #5 Text of Proposed Order)(Bruster, Anthony)

Datatreasury Corporation v. Wells Fargo & Company et al

Doc. 209 Att. 1

uB 10-K12/31 200s

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SNL Financial

u B 10-K12t31t2005
( A N N U A LREPORT PURSUANT SECTION TO l3AND Is{D})

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington,D.C. 20549

FORM lO-K
E ANNUAL RIPORT PURSUANT TO SECTION 13 OR 15(d) OF THE S E C U R I T I E S EXCHANGE ACT OF 1934

F o r thetircrl yearended Dcember 2005 31, OR

tr

TRANSITION REPORTPURSUANTTO SECTION 13OR 15(d)OF TI{E S E C U R I T T EEXCHANGE S ACT OF 1934

For the trrnsition period from C o m n i s s i o nfile number1,15081

to

UnionBanCalCorporation
( F , . s c lnameofregistmnr spe(ifiedin irqcharrert as

(Siaie of Incorporation)

94-1234979 (LR.S.Enployerldentification No.)

400 Crlifomia Street S u Frrncisco, Cllifo.nia 9411X1302 (Addressandzip codeofprincipal executiveofiices) Regislnf|s teleplone nmbq: [phone] pusudt 10Sectionl2(b) oftho Acil Secu.itiesrcgist@d Colmon Stock,$ I !e vrlue per shaE

New York SlockExchdge (Nme ofe3ch exchanse which resisiered) on

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puBuut to Sectionl2(g) oftle Acll registered Securities

Indicateby checkmdk ifthe rcgistrmt is a well-kno*n seasoned issuet asdfindin Rul405 ofth Secuities Aci Yes E Notr Indicaleby checkmark iflhe regrstEntis not requiredto file reponspursuant Section13 or Section15(d)ofthe Act. Yes tr No E to Indicaieby checkmark whetherthe registrmt (1) hasfiled all reponsreqniredto be filed by Section13or l5(d) ofthe Securities Exchange of Ac( 1934during the pr@eding12montls (or for sucl shorierperiod rhatthe Fgistmt wa! reqnired.o file seh reporls),md (2) hd beD subjectio such liling requirements the past90 days.Yes EI No tr for Indicateby checkmarl ifdisclosure of delinqnen!fileB puswt to Iten 405 of RegulationS-K b not cont inedherh, andwill nor be conlained, to tho bes(ofreClshnfs knowledge,iD definitiv. proxy or infom.tion statements incorpo.aled refdeDcein Part III ol this Fom l0-K or any by mendment to this Fom l0-K. tr Indical,e checkmrk whelherihe rgisrranr a large accelerated by is filer, an accleFtedfiler or a non-accleratd filer. Seedefininon of "ecleraled "ldge &celeratedfilel' in Rule 12b-2of the ExchanSe filer" and Act. Large accele.dedfilq E Accelerated filr tr filer N o n - a c c e l e r r F d tr

Indicatby checkma* wnetherthe registrdt is a shell compdy (a! definedin Rule 12b-2ofthe Act). Yes tr No E As of Jue 30, 2005,the aggregate mrkei value of voting andnon-votingcomon equity heldty non'affiliates of the registimt wd $3,744,1 12,701 . mdket valuewas comput d by reference the ldt salesprice of suchstock. io The aggregale As of Jdrary 3 I, 2006,t]te numter of shares ouistddiDg of th resbhanfs Colmon Stockwas 144.300,456. DOCUMENTS INCORPORATED BY REFERENCE
InmDoraled Do6uhent Portions ofthe Proxy Slatementfor our April 26. 2006 Amul

Meeling of St@kloldeN

PartIII

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Employees

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At January , 2006,w had10,410 31 firll-tim equivalent employes.
Conptition Banking is a hishly competitiv business.We competactively for loan, deposit, md other financial srvicesbusinssin &lifomia, Oregon tud washingtoq as well as nationally and htemationally. Our competito$ include a large numbr ofslate and national banks,thrift insdtutions, credit unions, finance conpanies, mongage banks and rnajor foreign-afiiliatd or foreign ba.ks, as well c nany frnancial and nonfinancial fims that offer servicessinilar to those olTeredbyus, including many large scuritiesfirms. Someofour comptiiors are communily or regional banks that hav stong local market positions. Other competitois include large financial instinrtions that have subshntial capital, tecbnology and rnarke.ing resources,which are well in xcessofouts. Suohldge financial institutions may have $eater access to capital ai a lower cost than us, whioh nay adverselyaffci oul ability to conpete efTectively. Technology and odrcr changsincreasingly allow parties to completefiMncial transactionselectronically, and in ndy cases,without banks. Fo. exanple, consumerscan pay bills and transfer firnds over th intemet and by telephonewithout banks.Many non-bank findcial srvice providers have lower ovrhadcosb and are subject to fewer regulatory conslnints. If consumersdo noruse banks to completetheir finaftial transactions,we could potentially lose fee incone, depositsand income genratedftom those deposits. Changesin federal law have made it easierfor out-of-statbanksto enter and competein the statesin which we opemte.Th Riegle-Neal InterstateBanking and Branching Etrciency Act of 1994(frc Riegl-Neal Act), anong other things, eliminated substantially all statlaw bdiers to the acquisition ofbanks by ourof-srate bank holding companies.A bank holding conpary may acquirebanks in statesother than its home staie,without regard io the pemissibilily of suchacquisitionsuder statelaw, but subject to any staterequirementihat lhe acquiredbank has been orgdizd and opemting for a minimum period oftime (not io excedfive years), and the requirementftat the acquiring bank holding cornpany,prior to or following the proposedacquisition, controh no more than 10 percntof the total amount of dposi.sof rhe insured depository institutions in the Uniied Statesand no moie than 30 percentofsuch depositsin that stat(or such lesseror greater amountas may be esrablishedby state law). The Riegle-Neal Act also pnits banks io acquirebranchslocaied in anotherstateby purchasingor me.gi[g with a bank charleredin that stateor a national banhng associationhaving its headquarters located in that srate. Banks, securitiesfims, and insuranceconpmies can now combine as a "financial holding colnpany." Finmcial holding companiescan offer virtually any r.).pe fmcial service, including bankins, secuntiesunder*riting, insuranceOoth agencyand undeMitins), and merchant of bdking. Many ofour competitors hav electedto becomefiMncial holding companies.Rcen ly, a nurnberofforeign ba.ks have afi.ained financial holding company statusin tll U.S., ftfiher increasingcompetition in the U.S. market. Under cunent regulatory interpretations, Mitsubishi UFJ Financial Croup, Inc. would be required to attain financial holding company statusin ord6 for us to be able io becornea financial holding conpmy. Mibubishi UTJ Findcial croup, Inc. is not presently a financial holding company. We believe that continued enphasis on enhancedservicesmd distribution syskms, an expandedcustoner base,incr6ed produdivity aDdstrons credit qualily, iogetherwith a subsbnrial capital base,will position us to met th challngesprovided by this conpetition. Monetary Policy and Economtc Conditionr Our eamings and businesses affected not only by genenl economic condiiions Ooth dornesticand intemtional), but also by the monetary are policis ofvarious govemental regulatory authorities ofthe Unitd Staresand foreigD govemnenb and intemational agencies.In pa.icular, our amings and growth

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policy through opeD my be affectd 1ctioft ofthe Federal ofnationalrnonetary ih by Reserve Boardin onnction its inplementation with against marketopemtions UnitedStates rate ofresene requirements both in Govemmnt securities, contol ofthe discount andestablishment member non-member and financialinstitutions'deposits. These actions havea significmtfect on rheoverallgrowthanddishibunon loans of It andleass, investments deposits, well ason therates loansandleass paidon deposits. is difficult 10predict or and as eamed securities, on tunre changs monetary in policiesandtheir efTect ourbusine$. on Supervtuion Regul|tion and o'"ruir'. Ba* holding companies and banks are extensively regulated under both federal alld state law. This regulation is intended pdmarily for the protction of depositors, the deposit insurance fund, and other clients of dte

institution, and not for the benefit of the investorsofthe bank holding company.Setforth below is a sunrnary descdptionofthe naleilal laws and rcgulatio/i,s relate to our operationand thoseof our subsidiaries,including that Union Bark of Califomia, N.A. BarkHoldits Conp@y Acr We, Mitsubishi UFJ Finarcial Group,lnc. and The Ba*of Tokyo-Mitsubishi UFJ, Ltd., arc (BHCA) which subjectsus to Fedelal to regulationunder the Bank Holding CompanyAct of 1956,as amended, subject Reseffe Board reporting and examinationrequirements.Generally,the BHCA restdcts our abiliry to invest in nonbanking entities, and we may not acquiremore than 5 percentofthe voting sharesofany domesticbark without the prior approval ofthe FederalReserveBoard. Our activities are limited, with someexceptions,to banking, the business of managingor contolling banks,and other activities, which the FederalReserveBoard deemsto be so closely related to banking as to be a proper incident thereto. Fedral as of and strength its to Under Reserv Board rgulations, a bank holding conpany required serve a source financial managerial is to Boa.d subsidiary and notconduct opemtions anunsafe unsound banks nay Under policy, Federal ihis the Resene may its in or manner.
require a holding company to contribut additional capital to an undercapitalizedsubsidiary bank.

is ConptroeroftheCu erc),. Union Bank of Califomia, N.A., as a national bank association, subjectto broad fedeal regulatiol and oversight extendingto all its operationsby the Office oftle Compholler of the Cunency, its primary rcgulator, and also by the FederalReserveBoard and the FedemlDeposit Insuance Corporation.As part of this authority, Union Bank of Califomia, N.A., is requiredto file pedodic reportswith the Comptroller of the Currencyand is subjectto periodic exanination by the Comptroller of the Curency.
The Conptroller ofthe CrEency has exteNive enforcemeniauthority over all national buks. If, as a result ofan examination ofa bdk, lh liquidity, Comptroller of the Curency detmines that the lndcial condition, capital resources,assetquality, eamingsprospects,managernent, or other aspectsofthe bank's operaiionsare unsaiisfactory or ftat the bank o. its nanagement is violating or has violated any law or "unsafe rcgulations, various remediesare available to the Comptoller ofthe Cunncy. Theserenedis includ the power to enjoin or unsound" practices,to require affirmative acaionio codecl any conditions rsulting ftom any violation or practice, to issue an adhinistrative civil nonetary penalties,to oider that can bejudicially enforcedto direct an increasein capital, to restrict the grolth ofthe bank, to assess remove officers and directors, and ultimately io ierminaie the bank's deposit insurance.The Comptroller ofthe Cunency, aswell as olher fderal agencies,have adoptedregulations md guidelines establishingsafety and sountuessstandards,including but not limited to suchmatiers as loan underwriting and documntation,intemal conlrols and audit systems,intrestrdte risk exposure,asseiquality and eamings and compensationand other employebenefits.

OtheRegulatory r oyesiahr Our subsidiariesare also subjectto extensiveregulation, supervision,and examinationby vadous other federal and statercgulatory agencies. addition, Union Bank of Califomia, N.A. and its subsidiaxies In are subjectto certain restrictionsunder the FedemlReseNeAct, including restrictionson affiliate tansactions. As a holding company,the pdncipal souce of our cashhas 1

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servicsto our custome.sand otherwise to conduct our business.Replacing thse.hird'party vendorscould also entail significant delay and

Ow bwiress cauu sufet ifve:t'ail ro attact and rctain skilled persomel Our successdepends,in large part, on our ability to attract md ietain key persomel, including executives.Any ofour cunent employees, ircludjng our senior nanagement, may terninate their mplqment with us at any tiine. Competition for qualifid personnelin our industry can be intense.We may not be successfulin attracting and reiaining suffcient qualifid pellornel. We rnay also incur increasedxpenses and be required to divert the attention of other senior executivsto recruit replacmnb for the loss of any key persomel. Sianifuant leaal actio8 .ould subjrct s to substantial unins*ed l lbilities we are fiom .ime .o time subject to clairns related to our operations.Thesclairns and legal actions, including supervisoryor enforcenent actions by our regulators,could involve large monetary claims and significant defensecosts-To protect ourselvsfrom lhe cost ofthese claims, we naintain insurree covemgin amountsand with dductiblesthat we believe are appropriatefor our operations.Howevr, our insuance covemgemay not cover all clairns agaimt us or continue to be available to us at a reasonabl cost. As a rsult, we may be exposed!o subsbnnal uninsurd liabilities, which could adverselyafiect ou business,prospects,results of operatioff and financial condition. Changesitl our t6 rctd coul.l afect ourfuture rcsults The Stateofcalifomia requirs us to file our franchiseta.\ retMs as a memberofa unitary $oup that includes Mitsubishi UFJ Financial Group and eiiher all worldwide affiliates or only U.S. afiiliaies. Our tuture effective tax raies could be favorably or unfavombly afTecled by 'ncreassor decreases Mitsubishi llFJ Financial Crcup's ta\able profits, which in tum are atrectedby changesin tlle worldwide economn in *pecially in Japan,and decisionslhat they may rnake about the timing ofthe recognition ofcredit lossesor other matoers. Our effective tax rates could also be affeotedby changesin the valuation ofour defened tax assetsand liabilities, changesin tax laws or lheir inter?retation,or by the outcones of examinationsof our income rax retums by th Intemal RevenueSeNice and other rax au6orities.

I t e m 18. Unresolved StaffComments

I t e m 2. Properties
At Decenber 31,2005, we operated315 full servicebranchesin Califomia,4 tull srvicebranchesin Oregon and Washington,and 20 intemational offices, which will be closed dudng 2006. We oM the property occupiedby 104 ofthe donestic ofiices and leasefie rmaining prope.ies for periods of five to twenry years. We own iwo ad inistrative facilities in San Fmncisco, two in Los Angeles, and ihree in San Diego. Olhr adininistrative offrcs in Arizona, Califomia, Iuinois, Newda, New York Oregon, Virsini4 Texas and Washington operatunder leasesexpiring in orc to twnty-six ye.rs. Rental expnsefor branchesand adninbtrative premisesis desqibed in Note 6 to oxr ConsolidatedFhmcial Statenetrh includd in this

I6

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EXECUTIVE OFFICIRS OF THE RtrGISTRANT

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Thfollowing information per.ains our execu.ive to oflicersasofDecember 2005: 3t, Tetsuo Shirnura
4L 67
PrinciD.l OccuDrdo4 For The flst FtueYein

TakashMonrnura i

53

P h i l i p Flynn B.

48

David I. Matson

61

Mt. Shintura seraed ChairnanofunionBancal Corporation has as and UnionBankof &lifomia, N.A. sinceOctober 2003.H previously on servd theBoards ofDirectorsofunionBancal Corporation and UnionBankof Califomia, N.A. ftom June199? July 1998. io has Mr. Shimum served thefollowingpositions TheBankofTokyoin at MitsubishiUFJ,Ltd.: Deput ftesidat n'olnJuly2001.o June2003, ChifExecutiveGlobalCorporate , Banking Businss ftom Unit Managing July2000to July2001andSnior Directorfiom June1998 to . I July2001 Mr. Shimum been directorof UnionBancal has Corporation andUnionBankofcalifomia, N.A. sinceOctobr 2003. Mr. Morimumhasserved Prsident ChiefExcutiv and Office. of as UnionBancaCorporation UnionBankof Califomia, l and N.A., since May 2005andseNed Vice Chairman as ofunionBancal Corporation andUnionBankof Califomia, N.A., ftoln July2004io May 2005. Mr. Morimwaserved General as Manager, GlobalCorpomie BankingIT Ofiice ofThe BankofTolfo-Mitsubishi UFJ,Ltd. fiom Planning July2000to June2004,andasDeputyGneral Manager, Ove6eas PlamingDivisionofThe BankofTokyo-Mitsubishi UFJ,Ltd. fion 1999 June2000.Mr. Moriinurawaselected non-boed Sepienber to a menberDireciorofThe BankofTokyo-Mitsubishi UFJ,Ltd. in Jue 2002anda non-board mmber Managins DirectorofThe Btuk of Tolryo-Mitsubishi UII Ltd. in May 2005.Mr. Morimua hasben a DirectorofunionBmcal Corporation UnionBankofcalifomia. ud N.A. 3D0eJuly2004. Mr. Fl).nnhasserved Vice Chainnan Chiefoperating as and Officrof UnionBancaCor?oration UnionBankofcalifomia, N.A., since l and March2005.He served Vice Chairman ftead as and ofthe Coinnercial FinanciaSrvics l GroupofunionBancal Corporation UnionBank and ofcalifomia, N.A., ftoln April 2004to March2005.He served as Vice President ChiefCreditOfficerofunionBancal Executive and Corporation UnionBankof Califomia,N.A., frornSeplembe. and 2000 to April 2004,asExecutive VicePresident head and ofspecialized Lendinsftom May 2000to September andasExcutive 2000 Vice President head theCom$ercial and BankingGoup fron Jrme of 1998 10 a May 2000.Mr. Fllaxn been DirectorofunionBalcal Corpomtion has andUnionBankofCalifomia,N.A. sinceApril 2004. Mr. Matson swed Vice Chairman ChiefFinancial has and as Officerof UnionBancaCorporation UnionBankof Califomia,N.A. since l ad March2005andserved Executiv as Vice Presidnt ChiefFinancial and Oficr ofunionBancal Corporation UnionBankofCalifomia,N.A. and f r o mJuly1998 March io 2005.

18

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PrlrclDrl OccuD.tloB For The Prst Ftve YeN

Masashi Oka

Linda F. BeEer

JoAnn M. Boume

50

Broce H. Cabral

50

PaulE. Farer Ronald Kendrick H.

62 64

JohnH. Mccuckin, Jr

59

& Mr. Okahasserved Vice Chairnan,Adrninistration supportof as UoionBancacorporation UnionBankofcalifomia, N.A., sino l and with July2005.Beginning 1998, Okaheldthefollowingpositions in Mr. Cor?oraie ThBaDkofTokyo-MibubishiUFJ,Ltd.: ChifMan3ger, Manager, syndicaiions Barddqg DivisionNo. 2 until April 2001 General ; FinatueDivisionuntil October 2002,Genercl Ofiice, Shuctured ManagerGlobalSyndications , Offic,DbtFinance Divisionunril Finance Jun2004;andGenenlMdagr & GlobalHead,Syndicated Div ion lntil May 2005.FromApril 2005until June 2005,Mr. Okawas Chairnanofthe Japan Syndication Loan-Trading and Association. DirectorofThe BankofTokyoMr. Okahasbeen non-board a membr a MitsubhhiUFJ,Ltd. sinceJune2005.Mr. Okahasbeen Dirctorof dd UnionBancaCorporation UnionBankofCalifomia,N.A. since l 2005. Octobr Ms.Btzer servd Executiv has Vice President head and ofth as OprationandCustoiner s Services GroupofunionBancal Corporation andUnionBankof Califomia,N.A. sincJanuary 2000. Ms.Boumehasser.i/ed Executive as VicPrsident sinceApnl 2000and ashead ofth Comnercial Deposits Tre.suryManagernent and Crcupof UnionBancalCorporation UnionBanl ofcalifomia, N.A. sinc and Ap.il 2003.Sheserved headofthe Comnercial a BankingGroupfiom January 2002to Apnl2003 andmanaged Comrnercial lhe Dposi. ro Services Divisioniion June1997 I^N^ty 2002. Mr. Cabnl hasseoedasExecutive VicePresident since March2000and asChiefcrdit Officerofuniodancal CorpontionandUnionBankof as Califomia,N.A. sinceApril 2004.He sewed DepuryChiefcredit 2002until April 2004.Priorto thispositioi! Officer Aon November M.. Cabral wasa Senior CreditOfficerresponsible RealEsiate for LendinsandNationalBanking. and Mr. Fearer srvd Executive has as Vice Presidnt Directorof and Human Resources UnionBancal of Corporation UnionBa.k of Ap;l 1996. c a l i f o m i aN.A.since , Mr. Kendrickhasseryed Executive as Vice Presidnt had and ofthe Br.king GroupofunionBancal Corporation Union and Community 2000.He servd Executive as Bankofcalifomia, N.A. sinceDecember ofunion Banl of Vice President Souihem and CalifomiaAreaExecutive to 2000. Califomia,N.A. fron March1994 Decnber as Vice President. Geneml Counsel Mr. Mccuckin hasserved Executive andSecretary ofunionBancal Corporation UnionBankof and vice Califomia, N.A. sinceSptmber 2000.He served Executiv as from PresidnandGeneml t Counsel ofunionBancal CoQo.ation as VicePresident January 1998 Sptnber io 2000andseryed Executive N.A. fioln ADril 1996 andGeneral Counsel ofunion Bankof Califomia. until SQtmbe. 2000.

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4

PrhctD.l Occub.don

For Th Plrt Flve Years

52

Mr. Yeehasserved Executive as Vic President Chiflnformation and Officerfor UnionBancal Corporation UnionBankof Califomia, and N.A. sinceMay 2005.Priortojoining UnionBancalCoQoration, he Techrclosy,for Charls sefledasSenior Vice President, Information Vice schwab companyfromApril 2004to April 2005andSenior & Inc. Presidnt chiflnformationOtrcer ofPacific Exchanse. from and April 2000to March2003.

Thetermof oflice ofan xecutive for Thera.e officrextnds until lhe officerresigns, removed, is retires, is otherwise or disqualified service. no family rlationships anonsthe executive ofiicers. P A R TII

Item 5. Market for Registrant'sCommonEquity, RelatedStockholder Matters, and IssuerPurchases Equity of Securlties
Our cornmon stockis traded ihe NewYork StockExchange on underthesynbol UB. As ofJanuary31,2006,our comrnon siockwasheldby 3,032 stockholders ofrecord. Deceinber At 31,2005, BankofTokyo-Mitsubishi hldapproximatelypercen The UFJ 63 ofourcommon stock. Dwing 2004snd2005,the average shares 308,178 and shares, respectively. At daily tradingvolumeofoui common stockwas263,184 D e c e n b e31,2003,2004 2005, common r per pr and per and respectively. our stock closed $57.54 share, at The $64.48 share, $68.72 share, followingtablepresenis quarlerly periodfor thetwo yearsended stockquotations ach fo. December t, 2004and2005. 3
,001 First quader Third qua.ter

$s8.26 57.59 59.79 64.18

$50.80 49.51 56.24 59.10

$63.99 68.00 1t.91 '70.45

$59.70 58.00 66.38 65.68

Th following table presentsquadrly per sharecashdividends declaredfor 2004 and 2005|

Firstquarter Thnd quartr

?ga._ $0.31 0.36 0.36 0.36

?!!!_ $0.36 0.41 0.41 0.41

On October 26, 2005, our Board ofDirctors approveda quarterly colnmon stock dividend of$0.41 per sharelor the fourth quarter of2005. Future dividends will dependupon our amings, financial condition, capital rcquirementsand other faciors as our Boa.d ofDiieoiors lnay

We otrer a dividend reinvestmentdd stock purchasplan that allows stockholders1orinvest dividnds in our cor non stock at market pric. The Bank of ToLyo-Mitsubishi UFJ did not participate in ihe plan during 2004 and 2005. For tunhr information about this plan, seeNote 15 to o'lr ConsolidatedFinancial Statements included in this Annual Report. Ou ability to dclareand pay dividends is affected by ceriain rgulatory restricrions. Se Node20 to our Coffolidaled Financial Statanents included in this AIn al Report.

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U n i o n B t D c , l Corporation and Substdlarles Notes to Consolldrted Financial Statmnts D e c e m b e r31, 2003,2004,lnd 2005 Note l--Sunnlry of Signifrcant Accountlng Policis rnd Notur of Opcratiotrs

UnionBancal Corporation is a commercial bank holding company dd has,as its major subsidiary, a banking subsidiary,Union Banl of Califomia, N.A. (dle Baik). UnionBancal Coryoration and its subsidiaries(Oe Company)provide a wide mnge offinancial seraicssto consurners,small businesses, middle-narket companiesand major corporations,primarily in Califomia, Oreso4 dd washington, and also nationally. The Bank ofTokyo-Mitsubishi UFJ, Ltd. (BTMrr, which is a wholly-owned subsidiary ofMitsubishi UTJ Financial croup, Inc. MUFG), owned approximately 63 prcnt ofthe Company's outstanding common stock at December 31, 2005. Basisol Financial Statenent Presefiation The accountingand repoding policies ofthe Company conform ,o accountingprinciples generally acceptedin the United StatesofAmrica (US GAAP) and genralpractice within the banking industry. Thosepolicies tha. maierialty affect ihe determinationof fidncial posirion, results ofoperations, and cashflows are sumrnadzedbelow. The ConsolidatedFinancial Siaiementsinclude the accountsofthe Company,and all material intercompdy trmsactions and balancshave been eliminated. The preparationoffinancial siatementsin conformiq with US GAAP rquiresnanagemenr to make stinates and assumptions.hataffect the refmrted amountsofassets and liabilities and disclosure ofconringenr assers and liabilities at the dareofthe financial sta&mentsand the rponed mounts ofrevenues and expenss dunng the.eporting period. Acnral results could difer fiom those estimates.Certain amountsfor prior periods may havebeenreclassifiedto conform with cunent financial staiemenlFesentation. Cash a C6h Equivale s

For purposesofreporting cashflows, cashand cashequivalntsinclude ashand due lion banks, inte.est bearing depositsin banks,and fedral tunds sold and securitiespurchasedundr resale agrcements, which have original marurities lessthan 90 days. Resaleand Repurctase Aereendts Transactionsinvolving purchales of secuities under agreernents resell (reverse.epurchaseageements or revene repot or salesof securities to under agreenentsto repwchase(repurchaseagreements repos) arc accountedfor as collateralized financings except*here the Company or doesnot have an agreemntto sell (or purchas)the sameor substantially the sime secuities before manrfity at a fixed or delerminableprice. The Company's policy is to obtain possssion collateral with a market value equal to or in excessof the principal anount loanenund; of resale ageernents.Collateral is valued daily, and the Company may require counterpartiesto deposit additional collsreml or rerum collatral pledged, when appropriat.

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S e c t i o n11: (906 CERTIFICATTON)

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trXHIBIT32.1

CERTIFICATION PI,RSUANTTO l 8 u.s.c. sEcTIoN 1350, AS ADOPTED PIJRSUANT TO SECTION OF THE SARBANES-OXLEY 906 ACT OF 2OO2

In connectionwith this Anual Report of UnionBancal Corporation (lhe "Conpany") on Fom 10-K for the year endins Decmber 31, 2005 as filed wilh ihe Securitiesand ExchangeConmission on the date hereof (the "Repod"), I, Takashi Morimura, ChiefExecutive Officq ofth Company,crtiry, pursuantio l8 U.S.C. Section 1350,as adoptedpursumt to Section 906 ofthe Sarbanes-Oxley Act of2002, tllat, to my

(l) TheReporttully complies with therequirements ofsection l3(a) or 15(d)ofthe Secudties Exchange of Act 1934;and

(2) The information containedin the Report fafuly presents,in all material respects, financial condition and the rcsults of operationsof the Company.

Dated: Marcht, 2006

By,

/Y TakalhiMorimura
Takashi Mo;nua Chief Executiv Ofiicer

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