What KeyCorp told the SEC could break it.

KeyCorp receives substantially all its funding from subsidiary dividends; federal banking law limits how much KeyBank can pay ($783M capacity without prior regulatory approval at year-end 2025), constraining holding-company liquidity and its own dividends/debt service.

“With the exception of cash that we may raise from debt and equity issuances, we receive substantially all of our funding from dividends by our subsidiaries. Dividends by our subsidiaries are the principal source of funds for the dividends we pay on our common and preferred stock and interest and principal payments on KeyCorp debt and capital securities. Federal banking law and regulations limit the amount of dividends that KeyBank (KeyCorp's largest subsidiary) can pay.”

Further tariffs and trade-policy changes, plus war-driven supply-chain disruption, could raise borrowers' input costs and depress asset prices, increasing potential defaults and loan losses across Key's portfolio.

“Present risks to stable asset prices include, but are not limited to: A correction in equity or housing markets; The imposition of further tariffs and other changes to U.S. or global trade policies; Supply chain issues such as closed factories and disrupted port activity, as well as the impact of the Russia-Ukraine war and the Israel-Hamas war on global transportation and the availability of materials;”