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UNITED STATES SECURITIES AND EXHCNAGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15d of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 7, 1994
KEYCORP
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(Exact name of registrant as specified in its charter)
Ohio 0-850 34-6542451
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
127 Public Square, Cleveland, Ohio 44114-1306
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (216) 689-6300
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Item 5. Other Events
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On December 7, 1994, KeyCorp announced that, as part of an on-going
management program to monitor and manage interest rate sensitivity, it
plans to reduce its exposure to higher interest rates through a
combination of strategies that may include the following:
- Reconfiguring the securities "available for sale" portfolio
to improve portfolio responsiveness to rising interest rates,
- Securitizing and selling certain fixed-rate loans,
- Allowing certain fixed-rate loans and investments to mature
without reinvestment, and
- Promoting certain fixed-rate market funding to support like
assets.
These steps, while not designed to totally eliminate interest
rate sensitivity, are intended to substantially reduce KeyCorp's
interest rate sensitivity below the level reported at September 30,
1994. Management anticipates that KeyCorp will incur, as a result of
implementing the above strategies, pre-tax losses of up to $100
million. Of this amount, $25 to $35 million ($0.07 to $0.10 per Common
Share) will likely be recognized in the 1994 fourth quarter. The
remaining $65 to $75 million in estimated losses will likely be
recognized in the first quarter of 1995. Management also anticipates
that, as a result of these strategies, 1994 earnings per Common Share
will be in the range of $3.45 to $3.50.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KEYCORP
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(Registrant)
/s/ Lee Irving
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Date: December 15, 1994 By: Lee Irving
Executive Vice President,
Treasurer and Chief
Accounting Officer
