1
00:00:00,160 --> 00:00:00,960
Speaker 1: Alongside.

2
00:00:01,000 --> 00:00:04,800
Speaker 2: Now with me, I have Citygroup Chief Financial Officer, Mark Mason.

3
00:00:05,120 --> 00:00:08,080
Speaker 2: It is the Bank Services Investor Day, and your CEO

4
00:00:08,440 --> 00:00:11,920
Speaker 2: Jane Fraser, made some news earlier saying that we are

5
00:00:12,000 --> 00:00:15,120
Speaker 2: no longer the financial supermarket of the past.

6
00:00:15,240 --> 00:00:18,000
Speaker 1: Correct, So Mark, what a City Group in the future.

7
00:00:18,600 --> 00:00:19,079
Speaker 3: Well, first of.

8
00:00:19,040 --> 00:00:21,320
Speaker 4: All, thank you for being here today. Today was a

9
00:00:21,520 --> 00:00:24,200
Speaker 4: very exciting day for us. We had an opportunity to

10
00:00:24,320 --> 00:00:27,760
Speaker 4: update over one hundred and twenty investors on the progress

11
00:00:27,760 --> 00:00:30,960
Speaker 4: that we've made since our Investor Day, but importantly to

12
00:00:30,960 --> 00:00:34,559
Speaker 4: do a deep dive on our services businesses. And to

13
00:00:34,640 --> 00:00:37,280
Speaker 4: your question, we want to be the pre eminent bank

14
00:00:37,440 --> 00:00:41,880
Speaker 4: for institutions with global needs as well as a leader

15
00:00:41,880 --> 00:00:45,760
Speaker 4: in global wealth and a winner in the US market

16
00:00:45,920 --> 00:00:49,000
Speaker 4: for our personal banking business. That's what we are today,

17
00:00:49,760 --> 00:00:51,840
Speaker 4: and a lot of what we talked about today again

18
00:00:52,040 --> 00:00:56,200
Speaker 4: was really highlighting the crown jewel of our firm, the

19
00:00:56,360 --> 00:00:59,680
Speaker 4: gateway to the rest of our offering for large institutional

20
00:00:59,720 --> 00:01:03,200
Speaker 4: client but also for middle market clients as well as

21
00:01:03,240 --> 00:01:06,600
Speaker 4: for investors and asset managers in both that treasury and

22
00:01:06,640 --> 00:01:10,560
Speaker 4: trade solutions business and our security services business.

23
00:01:10,680 --> 00:01:14,000
Speaker 2: It's interesting because to your point, even though security services

24
00:01:14,040 --> 00:01:17,039
Speaker 2: has been a crown jewel, accounting for roughly half the

25
00:01:17,120 --> 00:01:21,800
Speaker 2: profit recently of City Group's own entire businesses. It's been

26
00:01:21,800 --> 00:01:24,240
Speaker 2: hard to explain to investors exactly what it is what

27
00:01:24,280 --> 00:01:24,640
Speaker 2: it does.

28
00:01:24,720 --> 00:01:25,840
Speaker 1: Do you think City Group.

29
00:01:25,760 --> 00:01:29,480
Speaker 2: Stock would be trading higher if people understood the business

30
00:01:29,480 --> 00:01:30,360
Speaker 2: prospects for it.

31
00:01:30,520 --> 00:01:34,000
Speaker 4: I think the services businesses which are comprised of that

32
00:01:34,080 --> 00:01:38,360
Speaker 4: Treasury and Trade Solutions and the security services business contribute

33
00:01:38,360 --> 00:01:41,920
Speaker 4: a significant amount of value to this franchise, and I

34
00:01:41,959 --> 00:01:46,200
Speaker 4: hope that after today investors will realize exactly how much

35
00:01:46,280 --> 00:01:49,040
Speaker 4: value that is and how much upside there is to

36
00:01:49,160 --> 00:01:51,080
Speaker 4: that franchise, and we start to see it in the

37
00:01:51,120 --> 00:01:51,720
Speaker 4: stock price.

38
00:01:52,240 --> 00:01:52,520
Speaker 1: Today.

39
00:01:52,600 --> 00:01:54,200
Speaker 2: You are seeing it in the stock price if you

40
00:01:54,200 --> 00:01:55,919
Speaker 2: think about some of the things that have been holding

41
00:01:55,960 --> 00:01:59,160
Speaker 2: City Group behind. Mike Mayo of Wells Fargo big proponent

42
00:01:59,480 --> 00:02:01,960
Speaker 2: of Citycrep stock, but even he has been kind of

43
00:02:02,000 --> 00:02:06,360
Speaker 2: critical here of the wealth business, calling the returns pitiously low.

44
00:02:06,680 --> 00:02:08,839
Speaker 2: The question is do you have a timeline for when

45
00:02:08,880 --> 00:02:12,320
Speaker 2: investors can expect returns in that business and how soon

46
00:02:12,520 --> 00:02:14,120
Speaker 2: and how robust those returns can be.

47
00:02:14,639 --> 00:02:16,480
Speaker 4: You know, one of the things we talked about today

48
00:02:16,520 --> 00:02:20,120
Speaker 4: is timeline. We talked about the medium term twenty twenty six,

49
00:02:20,440 --> 00:02:23,400
Speaker 4: we talked about top line growth of four to five percent,

50
00:02:23,680 --> 00:02:27,560
Speaker 4: and we talked about the services businesses being a significant

51
00:02:27,560 --> 00:02:30,720
Speaker 4: contributor to that, both in the top line and our

52
00:02:30,760 --> 00:02:34,200
Speaker 4: services business is a twenty percent return on tangible common equity.

53
00:02:34,680 --> 00:02:37,280
Speaker 4: In the wealth space, we brought in new management there

54
00:02:37,680 --> 00:02:40,200
Speaker 4: and we're keenly focused on how we grow the top

55
00:02:40,240 --> 00:02:42,960
Speaker 4: line and how we improve margins and how we improve

56
00:02:43,000 --> 00:02:46,680
Speaker 4: returns there. That's going to involve everything from right sizing

57
00:02:46,720 --> 00:02:51,679
Speaker 4: the cost structure, to increasing the banker productivity, to driving

58
00:02:51,800 --> 00:02:55,760
Speaker 4: new net investment assets across that business. And we do

59
00:02:55,840 --> 00:02:58,600
Speaker 4: believe that inside of this window between now and twenty

60
00:02:58,639 --> 00:03:01,240
Speaker 4: twenty six, you'll start to see that value play through

61
00:03:01,240 --> 00:03:01,880
Speaker 4: our financials.

62
00:03:01,960 --> 00:03:04,400
Speaker 2: Now, it's interesting you mentioned new talent over at the

63
00:03:04,400 --> 00:03:08,200
Speaker 2: wealth business also at the investment banking businesses. When you

64
00:03:08,240 --> 00:03:11,639
Speaker 2: look across City Group's businesses today, are you seeing yourselves

65
00:03:11,680 --> 00:03:15,160
Speaker 2: bring in more and more external talent really scouring Wall

66
00:03:15,160 --> 00:03:18,480
Speaker 2: Street here to pick out the best out of your rivals.

67
00:03:18,639 --> 00:03:20,280
Speaker 4: Look, the good news is that City has been a

68
00:03:20,320 --> 00:03:23,720
Speaker 4: talent magnet. And when you look across Chain's leadership team,

69
00:03:24,120 --> 00:03:27,040
Speaker 4: we brought in Andy sig. We brought in viz Ragabond.

70
00:03:27,080 --> 00:03:29,800
Speaker 4: We recently hired Tim Ryan, so we brought in some

71
00:03:29,840 --> 00:03:32,400
Speaker 4: of the best talent on the street to bring both

72
00:03:32,760 --> 00:03:36,560
Speaker 4: operating chops, but also a different perspective to the institution

73
00:03:36,720 --> 00:03:39,600
Speaker 4: that we have into the execution of our strategy. These

74
00:03:39,600 --> 00:03:43,200
Speaker 4: are real operators who understand these parts of the franchise

75
00:03:43,400 --> 00:03:45,360
Speaker 4: and are going to bring that expertise to bear and

76
00:03:45,400 --> 00:03:46,839
Speaker 4: help drive that value.

77
00:03:46,960 --> 00:03:49,760
Speaker 2: You know, a lot of your recent communication to investors

78
00:03:49,840 --> 00:03:52,080
Speaker 2: kind of showed that a lot of this cost cutting

79
00:03:52,360 --> 00:03:54,000
Speaker 2: has been executed on already.

80
00:03:54,320 --> 00:03:55,760
Speaker 1: Does it give you wiggle.

81
00:03:55,480 --> 00:03:58,840
Speaker 2: Room now to lean in and spend in a few places,

82
00:03:58,840 --> 00:04:00,720
Speaker 2: to hire a little more in certain areas.

83
00:04:00,760 --> 00:04:02,600
Speaker 3: You know, Look, this is a multi year journey.

84
00:04:02,640 --> 00:04:06,240
Speaker 4: As you know, we're going through a significant transformation and

85
00:04:06,360 --> 00:04:10,240
Speaker 4: overhaul of our infrastructure. We're addressing the consent order remediations.

86
00:04:10,280 --> 00:04:12,800
Speaker 4: While we're doing that, it's not going to happen overnight.

87
00:04:12,880 --> 00:04:15,880
Speaker 4: We still have considerable amount of investment to make. We

88
00:04:16,000 --> 00:04:19,520
Speaker 4: have been talking about bending that expense curve. I have

89
00:04:19,600 --> 00:04:22,359
Speaker 4: given expense guidance that reflect some of the savings we

90
00:04:22,400 --> 00:04:25,600
Speaker 4: expect to get from the investments that we've been making

91
00:04:26,000 --> 00:04:28,560
Speaker 4: and speaking of investments, to your point, in order to

92
00:04:28,640 --> 00:04:33,560
Speaker 4: grow these parts of the franchise, they will require continued investment,

93
00:04:33,880 --> 00:04:36,080
Speaker 4: and as we realize savings, some of that will be

94
00:04:36,120 --> 00:04:39,720
Speaker 4: available for us to fund those investments to drive that

95
00:04:39,760 --> 00:04:40,800
Speaker 4: improved performance.

96
00:04:40,920 --> 00:04:43,599
Speaker 2: Speaking of new hires and speaking of performance, you said

97
00:04:43,600 --> 00:04:46,440
Speaker 2: today as well that the investment banking division in this

98
00:04:46,560 --> 00:04:49,760
Speaker 2: quarter you can see investment banking rising by fifty percent.

99
00:04:50,120 --> 00:04:52,159
Speaker 2: Of course, it's just been a matter of weeks since

100
00:04:52,240 --> 00:04:54,520
Speaker 2: a new hire from JP Morgan started to lead the

101
00:04:54,520 --> 00:04:59,040
Speaker 2: investment banking business. What does this mandate across the investment.

102
00:04:58,600 --> 00:05:01,680
Speaker 4: Bank well business brand new, But again you're talking about

103
00:05:01,720 --> 00:05:05,839
Speaker 4: an experienced season banker that's joined our franchise, and so

104
00:05:06,080 --> 00:05:08,120
Speaker 4: as you would imagine, he's coming in and he's getting

105
00:05:08,200 --> 00:05:11,200
Speaker 4: up to speed. He has a great appreciation for the

106
00:05:11,279 --> 00:05:15,159
Speaker 4: unique characteristics that city brings to banking, the globality of

107
00:05:15,200 --> 00:05:18,000
Speaker 4: the franchise, the breath of the clients that we serve.

108
00:05:18,200 --> 00:05:19,880
Speaker 4: But he's going to have to spend some time really

109
00:05:20,000 --> 00:05:22,880
Speaker 4: understanding where some of our weak points are, where some

110
00:05:22,920 --> 00:05:26,520
Speaker 4: of our advantages exist. He's going to quickly see that

111
00:05:26,560 --> 00:05:30,640
Speaker 4: we have invested in areas like health, in tech, and

112
00:05:30,680 --> 00:05:33,839
Speaker 4: that those parts of the franchise are well positioned to

113
00:05:33,960 --> 00:05:36,720
Speaker 4: capture the upside as the wilet rebounds. But I think

114
00:05:36,760 --> 00:05:38,640
Speaker 4: BUS is going to be keenly focused on how do

115
00:05:38,720 --> 00:05:41,920
Speaker 4: we get greater productivity, how do we gain more share

116
00:05:42,279 --> 00:05:43,440
Speaker 4: and how do we serve.

117
00:05:43,200 --> 00:05:44,480
Speaker 3: Our clients optimally.

118
00:05:44,600 --> 00:05:47,080
Speaker 4: The last point that I'll make, because this is unique

119
00:05:47,120 --> 00:05:49,359
Speaker 4: to I think City, is how do we bring the

120
00:05:49,480 --> 00:05:52,720
Speaker 4: breath of the franchise to bear for these clients. So

121
00:05:52,760 --> 00:05:55,800
Speaker 4: that's not just M and A and ECM and DCM

122
00:05:55,839 --> 00:05:58,440
Speaker 4: and the IPO activity, but how do we bring the

123
00:05:58,560 --> 00:06:01,720
Speaker 4: corporate activity as well? How do we bring the TTS

124
00:06:01,720 --> 00:06:03,440
Speaker 4: offering to bear for these clients?

125
00:06:03,600 --> 00:06:05,400
Speaker 3: How do we access the middle market clients.

126
00:06:05,440 --> 00:06:07,800
Speaker 4: I think this is going to bring some perspective on

127
00:06:07,960 --> 00:06:11,320
Speaker 4: broader client coverage and that's how you unleash the value

128
00:06:11,320 --> 00:06:13,520
Speaker 4: and the differentiating characteristics of City.

129
00:06:13,920 --> 00:06:16,760
Speaker 2: Now, one big question that remains in the investment banking

130
00:06:16,880 --> 00:06:18,920
Speaker 2: universe City Group massive debt underwriter.

131
00:06:19,040 --> 00:06:20,840
Speaker 1: Of course, how do you think about.

132
00:06:20,600 --> 00:06:23,480
Speaker 2: The competition you're seeing in the private credit landscape. Are

133
00:06:23,480 --> 00:06:25,400
Speaker 2: they friends, partners or enemies?

134
00:06:25,480 --> 00:06:27,800
Speaker 4: Yes, the answer is yes, right, I mean, at the

135
00:06:27,920 --> 00:06:30,919
Speaker 4: end of the day, it's a growing space, it's a

136
00:06:30,960 --> 00:06:34,160
Speaker 4: space that's hard to avoid. It's one that we're obviously

137
00:06:34,240 --> 00:06:37,080
Speaker 4: looking at what's the best way for us to play in.

138
00:06:37,400 --> 00:06:40,039
Speaker 4: I think part of that is going to be partnering

139
00:06:40,120 --> 00:06:43,120
Speaker 4: with those that have the prospect for being broader clients

140
00:06:43,160 --> 00:06:45,039
Speaker 4: with us, and part of it will be competing in

141
00:06:45,080 --> 00:06:46,799
Speaker 4: some aspects as well. But we're going to be smart

142
00:06:46,839 --> 00:06:48,640
Speaker 4: about it, We're going to be deliberate about it, and

143
00:06:48,640 --> 00:06:51,640
Speaker 4: we're going to ensure that whatever we're doing is consistent

144
00:06:51,680 --> 00:06:53,200
Speaker 4: with the broader strategy.

145
00:06:52,760 --> 00:06:53,280
Speaker 3: That we've said.

146
00:06:53,400 --> 00:06:55,480
Speaker 2: I also want to be cognizant that City Group still

147
00:06:55,520 --> 00:06:57,920
Speaker 2: has its own dealmaking on the table here. There's a

148
00:06:57,960 --> 00:07:00,559
Speaker 2: lot of questions about when you see that that fully

149
00:07:00,560 --> 00:07:04,279
Speaker 2: happen in Mexico for example, of course new leadership the

150
00:07:04,279 --> 00:07:06,760
Speaker 2: Globe is watching in Mexico as well. Does it change

151
00:07:06,760 --> 00:07:09,400
Speaker 2: your calculus on how you see an exit happening via

152
00:07:09,440 --> 00:07:10,160
Speaker 2: sale or IPO.

153
00:07:10,560 --> 00:07:13,200
Speaker 4: Look, the new leadership is an historic event, and so

154
00:07:13,240 --> 00:07:16,640
Speaker 4: we congratulate Claudio on actually being elected to president. We

155
00:07:16,640 --> 00:07:20,720
Speaker 4: think that's significant. It doesn't change our strategy, It doesn't

156
00:07:20,800 --> 00:07:24,480
Speaker 4: change our focus on the importance of the IPO. It

157
00:07:24,520 --> 00:07:27,040
Speaker 4: doesn't change our focus on the importance of the separation

158
00:07:27,120 --> 00:07:30,280
Speaker 4: which happens before the IPO, which we're keenly focused on

159
00:07:30,400 --> 00:07:32,960
Speaker 4: right now. We obviously, at the end of the day,

160
00:07:33,000 --> 00:07:35,240
Speaker 4: want to do what's in the best interest of the shareholders,

161
00:07:35,320 --> 00:07:40,440
Speaker 4: and we believe that getting the Mexico consumer franchise in

162
00:07:40,480 --> 00:07:42,960
Speaker 4: the hands of another player is in the best interests

163
00:07:42,960 --> 00:07:45,040
Speaker 4: of our shareholders, and we're focused on that.

164
00:07:45,320 --> 00:07:48,600
Speaker 2: Beyond the Mexican consumer, the US consumer, of course, is

165
00:07:48,640 --> 00:07:50,960
Speaker 2: the giant whale in the room. When people are thinking

166
00:07:50,960 --> 00:07:53,760
Speaker 2: about the US economy, investors are baking in where to

167
00:07:53,800 --> 00:07:54,840
Speaker 2: put their chips next.

168
00:07:55,080 --> 00:07:57,480
Speaker 1: How do you think about that from the perspective of city.

169
00:07:57,280 --> 00:08:01,120
Speaker 2: Group, given you're alluding earlier today to this higher for

170
00:08:01,240 --> 00:08:04,040
Speaker 2: longer rate environment and what that means.

171
00:08:03,840 --> 00:08:04,600
Speaker 1: For charge offs.

172
00:08:05,440 --> 00:08:08,840
Speaker 4: Look, I think that you know, we're all watching kind

173
00:08:08,880 --> 00:08:11,680
Speaker 4: of the impact of inflation and interest rates and what

174
00:08:11,720 --> 00:08:14,960
Speaker 4: that means for consumers. And we have seen the credit

175
00:08:15,600 --> 00:08:18,760
Speaker 4: environment normalized for consumers, particularly on the low end of.

176
00:08:18,760 --> 00:08:19,640
Speaker 3: The FICO score.

177
00:08:20,280 --> 00:08:23,760
Speaker 4: This case shaped type of normalization that's taking place, which

178
00:08:23,760 --> 00:08:25,640
Speaker 4: you have to keep in mind from a city perspective,

179
00:08:25,720 --> 00:08:27,520
Speaker 4: is we tend to play on the higher end of

180
00:08:27,560 --> 00:08:30,840
Speaker 4: that credit spectrum. So eighty five percent of our of

181
00:08:30,880 --> 00:08:33,679
Speaker 4: our card bases with consumers with Fyco scores of six

182
00:08:33,840 --> 00:08:36,600
Speaker 4: sixty or higher. Doesn't mean we don't watch it closely,

183
00:08:36,720 --> 00:08:39,479
Speaker 4: but it does mean that we ensure we've got appropriate

184
00:08:39,559 --> 00:08:44,040
Speaker 4: levels of reserves in place and that we're we're sticking

185
00:08:44,120 --> 00:08:47,920
Speaker 4: true to, if you will, our credit profile and risk appetite.

186
00:08:48,080 --> 00:08:51,439
Speaker 4: So we feel very well positioned. There will be continued normalization,

187
00:08:51,880 --> 00:08:56,280
Speaker 4: there will be continued increases in NCLs, but generally in

188
00:08:56,280 --> 00:08:59,760
Speaker 4: line with the expectations given where we've come from.

189
00:09:00,080 --> 00:09:00,920
Speaker 3: So to speak, do you have.

190
00:09:00,960 --> 00:09:03,320
Speaker 2: To change anything about the way you underwrite in the

191
00:09:03,360 --> 00:09:07,040
Speaker 2: future given the changing expectations around inflation and interest rates?

192
00:09:07,080 --> 00:09:09,280
Speaker 4: At this point, we're constantly looking at that. I think

193
00:09:09,320 --> 00:09:12,360
Speaker 4: we've got a very robust risk appetite. We constantly look

194
00:09:12,400 --> 00:09:14,960
Speaker 4: at that based on the environment that we're in. We

195
00:09:15,040 --> 00:09:18,360
Speaker 4: obviously run all types of stress tests and scenarios. We

196
00:09:18,400 --> 00:09:20,760
Speaker 4: do that not only for the existing book, but we

197
00:09:20,840 --> 00:09:22,960
Speaker 4: do that for how we profile the new book and

198
00:09:23,000 --> 00:09:25,800
Speaker 4: the clients that we want to onboard and acquire, and

199
00:09:25,840 --> 00:09:28,120
Speaker 4: again we feel very very good about that. We feel

200
00:09:28,120 --> 00:09:31,719
Speaker 4: good about our understanding of those demographics. The savings profiles

201
00:09:31,720 --> 00:09:34,240
Speaker 4: of our clients are spending habits, and so we feel

202
00:09:34,240 --> 00:09:35,679
Speaker 4: good about kind of where we're going with what.

203
00:09:35,640 --> 00:09:36,840
Speaker 1: About industry wide?

204
00:09:37,000 --> 00:09:39,960
Speaker 2: Even though you have kind of clamped down on risk

205
00:09:40,000 --> 00:09:42,679
Speaker 2: in City's own portfolio, you mentioned that you've kind of

206
00:09:42,679 --> 00:09:45,640
Speaker 2: gone upstream in terms of the people you do lend

207
00:09:45,720 --> 00:09:48,040
Speaker 2: to in terms of their FICO scores. What does it

208
00:09:48,160 --> 00:09:51,360
Speaker 2: mean for those that are more exposed to the lower

209
00:09:51,360 --> 00:09:56,480
Speaker 2: income consumer today, especially because corporation after corporation is starting

210
00:09:56,520 --> 00:09:59,840
Speaker 2: to mention those stresses in their earnings reports.

211
00:09:59,559 --> 00:10:02,040
Speaker 4: And otherwise, Look, I think there's still a fair amount

212
00:10:02,040 --> 00:10:05,920
Speaker 4: of uncertainty as to how this macro environment evolves, right,

213
00:10:05,960 --> 00:10:09,719
Speaker 4: so whether that the interest rates or how inflation kind

214
00:10:09,720 --> 00:10:12,480
Speaker 4: of stabilizes, and does that stabilize kind of fast enough

215
00:10:12,520 --> 00:10:13,760
Speaker 4: for us to see cuts.

216
00:10:13,480 --> 00:10:15,599
Speaker 3: In the near term are all unknowns.

217
00:10:15,600 --> 00:10:19,800
Speaker 4: But they're also factors that influence the pressure that consumers

218
00:10:19,840 --> 00:10:20,760
Speaker 4: are likely to see.

219
00:10:20,840 --> 00:10:23,400
Speaker 3: And so there's a fair amount of uncertainty there that.

220
00:10:23,320 --> 00:10:26,960
Speaker 4: People have to manage too. And again we're thoughtful about it.

221
00:10:27,000 --> 00:10:28,720
Speaker 4: I think we're managing to it very carefully.

222
00:10:28,960 --> 00:10:30,520
Speaker 2: Before I let you go as well, Mark, there was

223
00:10:30,520 --> 00:10:33,240
Speaker 2: a report today in the journal City Group is specific

224
00:10:33,320 --> 00:10:37,720
Speaker 2: here about concerns around your living will planning at City Group.

225
00:10:38,400 --> 00:10:39,920
Speaker 2: How do you address those concerns?

226
00:10:41,000 --> 00:10:43,080
Speaker 3: Yeah, you know, look, I saw the report.

227
00:10:43,200 --> 00:10:47,199
Speaker 4: I obviously can't comment on what our regulators haven't really

228
00:10:47,240 --> 00:10:49,160
Speaker 4: said yet or rumors that are out there.

229
00:10:49,440 --> 00:10:50,959
Speaker 3: What I can say is that.

230
00:10:50,880 --> 00:10:54,680
Speaker 4: As I mentioned earlier, we've been making significant investments across

231
00:10:54,679 --> 00:10:59,760
Speaker 4: the franchise, across regulatory reporting, across data and the thought

232
00:11:00,040 --> 00:11:05,439
Speaker 4: cross resolution and recovery planning. We're constantly looking at these processes.

233
00:11:05,480 --> 00:11:07,520
Speaker 4: We're looking at ways to enhance them. We're looking at

234
00:11:07,520 --> 00:11:11,439
Speaker 4: ways to improve our forecasting capability to ensure that our

235
00:11:11,520 --> 00:11:14,640
Speaker 4: playbooks are robust in case of a situation like that.

236
00:11:15,120 --> 00:11:16,720
Speaker 3: Importantly, we feel.

237
00:11:16,520 --> 00:11:19,560
Speaker 4: Very good about our capital, our liquidity. We've got a

238
00:11:19,640 --> 00:11:22,440
Speaker 4: very strong balance sheet. But these are areas we've been

239
00:11:22,480 --> 00:11:25,160
Speaker 4: investing in because we know the areas that frankly, the

240
00:11:25,240 --> 00:11:28,880
Speaker 4: industry likely needs to further enhance, and we certainly want

241
00:11:28,880 --> 00:11:30,199
Speaker 4: to enhance them for ourselves.

242
00:11:30,240 --> 00:11:34,679
Speaker 2: We're not far off also from expected new proposals.

243
00:11:34,080 --> 00:11:35,559
Speaker 1: Around the Basle three endgame.

244
00:11:36,679 --> 00:11:39,600
Speaker 2: Given there's been so much change and what's expected out

245
00:11:39,640 --> 00:11:41,960
Speaker 2: of those final rules, what do you think will be

246
00:11:41,960 --> 00:11:45,760
Speaker 2: the most different And are there certain businesses that City

247
00:11:45,800 --> 00:11:49,120
Speaker 2: Group may have to tone down on given the new rules,

248
00:11:49,200 --> 00:11:49,679
Speaker 2: that may not.

249
00:11:49,640 --> 00:11:50,400
Speaker 1: Be as profitable.

250
00:11:50,720 --> 00:11:50,920
Speaker 2: Yeah.

251
00:11:50,960 --> 00:11:54,080
Speaker 4: Look, the proposal is evolving as we know, and we

252
00:11:54,120 --> 00:11:56,959
Speaker 4: have no idea kind of how it evolves further and

253
00:11:57,120 --> 00:12:00,480
Speaker 4: where we end up. I think that, you know, I'm

254
00:12:00,520 --> 00:12:03,360
Speaker 4: hopeful that we see some changes in how the.

255
00:12:03,360 --> 00:12:06,080
Speaker 3: Proposal addresses operational risk.

256
00:12:07,240 --> 00:12:09,720
Speaker 4: There were certainly some heavy weightings as it relates to

257
00:12:09,760 --> 00:12:13,640
Speaker 4: equity exposures, they were certainly heaving waitings as it relates

258
00:12:13,679 --> 00:12:17,200
Speaker 4: to credit, and hopefully those things continue to evolve in

259
00:12:17,240 --> 00:12:20,640
Speaker 4: a way that is more thoughtful and more favorable to

260
00:12:21,160 --> 00:12:24,720
Speaker 4: the industry, supporting the stability of the broader markets.

261
00:12:24,920 --> 00:12:26,760
Speaker 2: Do you think they will be more lax in those

262
00:12:26,800 --> 00:12:28,240
Speaker 2: fronts by the end of it?

263
00:12:29,080 --> 00:12:30,439
Speaker 3: I hope so.

264
00:12:30,559 --> 00:12:32,480
Speaker 2: Mark, Well, we thank you very much for your time.

265
00:12:32,480 --> 00:12:35,480
Speaker 2: That is Mark Mason, the CFO of City Group, of course,

266
00:12:35,520 --> 00:12:36,200
Speaker 2: speaking at.

267
00:12:36,040 --> 00:12:38,360
Speaker 1: The bank's Services Investor Day

268
00:12:38,480 --> 00:12:40,959
Speaker 2: Speaking a little more about that crown jewel inside of

269
00:12:41,000 --> 00:12:41,440
Speaker 2: City Group.