WEBVTT - Citigroup CEO Jane Fraser Talks M & A

0:00:02.360 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, podcasts, Radio News.

0:00:06.760 --> 0:00:09.959
<v Speaker 2>Bloomberg News Global finance correspondent Stionali basic sitting down right

0:00:09.960 --> 0:00:12.800
<v Speaker 2>now with City CEO Jane Fraser for an exclusive interview

0:00:12.880 --> 0:00:14.840
<v Speaker 2>from City headquarters in New York City.

0:00:14.840 --> 0:00:20.360
<v Speaker 3>Shanali, Thank you so much. Tim.

0:00:20.440 --> 0:00:23.239
<v Speaker 4>Yes, I'm standing by now with CEO of City Group,

0:00:23.320 --> 0:00:27.320
<v Speaker 4>Jane Fraser, and we are just one week out from

0:00:27.560 --> 0:00:30.880
<v Speaker 4>Donald Trump's presidential victory. As the CEO of one of

0:00:30.920 --> 0:00:35.040
<v Speaker 4>the country's largest banks, what's the most significant change you're

0:00:35.080 --> 0:00:36.600
<v Speaker 4>expecting with the Trump administration.

0:00:37.000 --> 0:00:39.080
<v Speaker 5>Well, first of all, Sanali, thank you so much for

0:00:39.159 --> 0:00:41.600
<v Speaker 5>joining us here at Cities headquarters in New York.

0:00:42.000 --> 0:00:44.199
<v Speaker 1>It is lovely to see you again. Thank you.

0:00:45.960 --> 0:00:49.279
<v Speaker 5>So I view this not just from the perspective of

0:00:49.320 --> 0:00:52.960
<v Speaker 5>our own operations, but from that broader perspective from our

0:00:53.000 --> 0:00:54.360
<v Speaker 5>clients around the world.

0:00:54.800 --> 0:00:56.320
<v Speaker 1>And I think they'd say fourties.

0:00:57.240 --> 0:01:01.400
<v Speaker 5>The first one is the tempering of regular second would

0:01:01.440 --> 0:01:04.920
<v Speaker 5>be taxes, third would be tariffs, and the final one

0:01:04.959 --> 0:01:08.880
<v Speaker 5>would be tightening immigration. And as we look across the board,

0:01:09.000 --> 0:01:12.120
<v Speaker 5>I would put that in the perspective of a largely

0:01:12.319 --> 0:01:13.759
<v Speaker 5>pro growth agenda.

0:01:14.360 --> 0:01:17.920
<v Speaker 4>Well, you're also the most global bank in the country.

0:01:17.959 --> 0:01:20.880
<v Speaker 4>How are you preparing for the world of global finance

0:01:21.080 --> 0:01:23.759
<v Speaker 4>to potentially be shaken up by some of these policies.

0:01:23.760 --> 0:01:26.759
<v Speaker 4>The tariff policy in particular, it's something that Trump has

0:01:26.800 --> 0:01:29.440
<v Speaker 4>made clear it's a key policy that he'll be implement

0:01:29.560 --> 0:01:30.520
<v Speaker 4>in So when.

0:01:30.319 --> 0:01:33.800
<v Speaker 5>We look at trade, you're right that there's going to

0:01:33.840 --> 0:01:37.360
<v Speaker 5>be changes, but it's not Trade is not going away.

0:01:38.240 --> 0:01:39.039
<v Speaker 1>So as we look.

0:01:38.920 --> 0:01:41.760
<v Speaker 5>At this around the world, I think we've already seen

0:01:42.080 --> 0:01:45.320
<v Speaker 5>major changes in the global lanes in the last three years,

0:01:45.400 --> 0:01:53.440
<v Speaker 5>driven by geopolitics and technology transformation. If you speak food, energy, technology, security,

0:01:53.680 --> 0:01:58.000
<v Speaker 5>cyber finance, green all of these different lanes are changing

0:01:58.040 --> 0:02:01.600
<v Speaker 5>around the world. This just puts one more into the mix.

0:02:02.600 --> 0:02:05.720
<v Speaker 5>So it will take a bit of time from trade

0:02:06.120 --> 0:02:08.800
<v Speaker 5>and the tariffs to see what goes from the rhetoric

0:02:09.400 --> 0:02:14.600
<v Speaker 5>to the actual agreements and the policies, and then into execution.

0:02:15.000 --> 0:02:17.680
<v Speaker 1>We'll have some time to work out what that mix is.

0:02:17.960 --> 0:02:20.360
<v Speaker 4>Another major reason I bring up trade first is because

0:02:20.400 --> 0:02:22.800
<v Speaker 4>a lot of prominent economists have brought up the idea

0:02:23.000 --> 0:02:26.160
<v Speaker 4>of inflation that could be brought on on the heels

0:02:26.160 --> 0:02:28.960
<v Speaker 4>of tariffs. How concerned are you about inflation? You are

0:02:29.040 --> 0:02:30.960
<v Speaker 4>kind of very early here to catch it.

0:02:30.919 --> 0:02:31.639
<v Speaker 3>In the first place.

0:02:32.960 --> 0:02:35.679
<v Speaker 5>Certainly there are elements of this that could be inflationary.

0:02:35.720 --> 0:02:38.280
<v Speaker 5>At the same time, we've also seen, particularly here in

0:02:38.320 --> 0:02:43.320
<v Speaker 5>the States, an ability to have productivity improvements and driving

0:02:43.440 --> 0:02:46.919
<v Speaker 5>changes through. So I would say we've got to wait

0:02:46.960 --> 0:02:51.720
<v Speaker 5>and see people decide policy and determine policy. Let's see

0:02:51.720 --> 0:02:54.239
<v Speaker 5>what the policies are, and then we can work out

0:02:54.360 --> 0:02:56.520
<v Speaker 5>what's the what's the response to it.

0:02:56.760 --> 0:02:58.919
<v Speaker 4>Well, the other interesting thing here is that the interest

0:02:58.960 --> 0:03:03.320
<v Speaker 4>rate expectation has changed really meaningfully, and that's given concerns

0:03:03.360 --> 0:03:07.040
<v Speaker 4>around fiscal deficits. How concerned are you about the deficit

0:03:07.080 --> 0:03:09.760
<v Speaker 4>in particular heading into next year and even beyond that.

0:03:10.360 --> 0:03:13.840
<v Speaker 5>It's certainly a consideration for me for the medium and

0:03:13.960 --> 0:03:18.320
<v Speaker 5>longer term. There's both a numerator and a denominator to

0:03:18.400 --> 0:03:22.919
<v Speaker 5>this equation. The numerator is growth and the denominator is

0:03:22.960 --> 0:03:26.200
<v Speaker 5>obviously the fiscal disciplines. And I think one of the

0:03:26.200 --> 0:03:29.560
<v Speaker 5>benefits here in the States compared to many geographies is

0:03:29.560 --> 0:03:33.119
<v Speaker 5>that we've got the growth part of the numerator, which

0:03:33.160 --> 0:03:36.240
<v Speaker 5>is helpful. This is clearly going to come into play

0:03:36.320 --> 0:03:38.640
<v Speaker 5>on the denominator, and we're going to need to see

0:03:38.640 --> 0:03:41.440
<v Speaker 5>the fiscal discipline. I don't think it's going to be

0:03:41.480 --> 0:03:45.840
<v Speaker 5>such an equation globally for the next couple of years,

0:03:46.120 --> 0:03:48.120
<v Speaker 5>because I think a lot of roads lead to the.

0:03:48.120 --> 0:03:50.200
<v Speaker 1>US in terms of investments.

0:03:50.240 --> 0:03:53.320
<v Speaker 4>In the meantime, it's interesting the bond market reaction you

0:03:53.360 --> 0:03:55.840
<v Speaker 4>saw last week alone, and as of this morning you

0:03:55.880 --> 0:03:58.840
<v Speaker 4>were flirting again with four point four percent on the

0:03:58.920 --> 0:04:02.280
<v Speaker 4>ten year the seeover bank, how much do you worry

0:04:02.320 --> 0:04:04.800
<v Speaker 4>about their long and the curve tailing off?

0:04:05.040 --> 0:04:06.840
<v Speaker 3>And is it a good thing in some degree for you?

0:04:08.000 --> 0:04:09.880
<v Speaker 5>What I think we're seeing in terms of the long

0:04:09.960 --> 0:04:12.720
<v Speaker 5>end is something everyone is going to be keeping a very.

0:04:12.560 --> 0:04:13.320
<v Speaker 1>Close eye on.

0:04:13.680 --> 0:04:15.680
<v Speaker 5>But I take the step back and look at what

0:04:15.840 --> 0:04:18.640
<v Speaker 5>actually is happening at the moment. We are seeing the

0:04:18.680 --> 0:04:23.200
<v Speaker 5>big unlock we've been waiting to see on the M

0:04:23.200 --> 0:04:25.680
<v Speaker 5>and A side. When is it the clients can be

0:04:25.760 --> 0:04:28.520
<v Speaker 5>more active in the one to three billion dollar acquisition

0:04:28.640 --> 0:04:32.560
<v Speaker 5>range the sponsors have been waiting to see and unlocking

0:04:32.880 --> 0:04:36.719
<v Speaker 5>for them to participate more. We're seeing that right now beginning.

0:04:37.120 --> 0:04:40.360
<v Speaker 5>Same for the IPO market growth of lev finn So

0:04:40.400 --> 0:04:43.320
<v Speaker 5>I think most of the attention is actually going to

0:04:43.360 --> 0:04:47.400
<v Speaker 5>pivot to the primary issuance and the activity that's driving

0:04:47.480 --> 0:04:50.839
<v Speaker 5>behind it, and that will be the story for the

0:04:50.880 --> 0:04:51.479
<v Speaker 5>next while.

0:04:51.760 --> 0:04:53.800
<v Speaker 4>I'm glad you brought that up. I will take you there.

0:04:53.839 --> 0:04:55.240
<v Speaker 4>It seems like you want to go to murder as

0:04:55.240 --> 0:04:58.120
<v Speaker 4>an acquisition. City Group, of course, is the advisor on

0:04:58.200 --> 0:05:00.599
<v Speaker 4>the largest deal of the year so far, the thirty

0:05:00.600 --> 0:05:03.960
<v Speaker 4>five billion dollar Mars deal to buy Calenova. There's an

0:05:03.960 --> 0:05:06.680
<v Speaker 4>expectation by investors out there that you could see bigger

0:05:06.960 --> 0:05:11.120
<v Speaker 4>and bigger deals. When you talk to clients, how excited

0:05:11.160 --> 0:05:12.920
<v Speaker 4>are they to push the button? How willing are they

0:05:12.920 --> 0:05:15.159
<v Speaker 4>to push the button on deals that are even larger

0:05:15.160 --> 0:05:16.480
<v Speaker 4>than thirty five billion dollars.

0:05:17.240 --> 0:05:19.080
<v Speaker 5>I think there's been a there's a lot of pent

0:05:19.160 --> 0:05:21.800
<v Speaker 5>up demand. But at the same time, I see, particularly

0:05:21.839 --> 0:05:24.479
<v Speaker 5>in the States, which is the majority of the M

0:05:24.480 --> 0:05:27.400
<v Speaker 5>and A activity at the moment, and it's likely to

0:05:27.440 --> 0:05:31.040
<v Speaker 5>be that way. It is game on the clients are

0:05:31.160 --> 0:05:34.640
<v Speaker 5>on the front foot in the States that they're looking

0:05:34.720 --> 0:05:38.640
<v Speaker 5>at driving transformation of their businesses. It is a scale

0:05:38.720 --> 0:05:44.480
<v Speaker 5>game at the moment in industry after industry and technology

0:05:44.560 --> 0:05:48.480
<v Speaker 5>is changing so quickly. It's very exciting, but it means

0:05:48.520 --> 0:05:52.680
<v Speaker 5>that clients who are not necessarily in technology, somebody discover

0:05:52.760 --> 0:05:55.960
<v Speaker 5>they better be, and they're going to be buying expertise

0:05:56.080 --> 0:05:56.880
<v Speaker 5>in that area.

0:05:57.400 --> 0:06:00.479
<v Speaker 1>So it's going to be pretty active from.

0:06:00.279 --> 0:06:04.479
<v Speaker 5>The strategics as well as from the sponsor space, partly

0:06:04.720 --> 0:06:07.600
<v Speaker 5>pent up but also the new possibilities.

0:06:07.720 --> 0:06:10.160
<v Speaker 4>Do you think that means that this is a series

0:06:10.200 --> 0:06:12.760
<v Speaker 4>of smaller deals that will start to make the deal

0:06:12.800 --> 0:06:16.280
<v Speaker 4>market come back in mass or is that inclination for

0:06:16.400 --> 0:06:18.120
<v Speaker 4>mega deals still there? There's a little bit of a

0:06:18.200 --> 0:06:20.440
<v Speaker 4>question out there and still how much those deals will

0:06:20.440 --> 0:06:21.120
<v Speaker 4>get through.

0:06:21.200 --> 0:06:23.560
<v Speaker 3>Even in Trump anti trust authority.

0:06:24.160 --> 0:06:26.640
<v Speaker 5>Certainly there are questions, but I think it's an and

0:06:27.000 --> 0:06:30.360
<v Speaker 5>not in all. We had our technology conference last week.

0:06:30.400 --> 0:06:32.960
<v Speaker 5>We had over one hundred and ten or so CEOs

0:06:33.240 --> 0:06:36.679
<v Speaker 5>from around the world, all wanting to be very focused

0:06:36.720 --> 0:06:38.400
<v Speaker 5>on the States. We kind of bring the world to

0:06:38.920 --> 0:06:42.880
<v Speaker 5>Silicon Valley, and the dialogue was around all of the

0:06:42.960 --> 0:06:43.920
<v Speaker 5>above at the moment.

0:06:44.000 --> 0:06:45.440
<v Speaker 1>So the ambition is there.

0:06:45.880 --> 0:06:47.880
<v Speaker 5>As always with M and A, there's a difference between

0:06:47.920 --> 0:06:52.000
<v Speaker 5>announced and completed, and that's where I certainly our people

0:06:52.040 --> 0:06:53.560
<v Speaker 5>are ready to help.

0:06:53.680 --> 0:06:55.880
<v Speaker 3>You've got a new investment banking chief.

0:06:56.000 --> 0:06:58.520
<v Speaker 4>In part of the idea is to go after more

0:06:58.839 --> 0:07:01.960
<v Speaker 4>private equity client. There's also an expectation of private equity

0:07:02.000 --> 0:07:05.440
<v Speaker 4>deals to come back. But if interest rates remain higher,

0:07:06.000 --> 0:07:09.600
<v Speaker 4>how possible is that deal flow to come to the surface.

0:07:10.160 --> 0:07:13.200
<v Speaker 5>Obviously, lower rates is helpful, and we've got a long

0:07:13.240 --> 0:07:15.880
<v Speaker 5>way to go in bringing the rates down. I mean,

0:07:15.920 --> 0:07:17.920
<v Speaker 5>there is a lot of cushion there at the moment,

0:07:17.960 --> 0:07:21.280
<v Speaker 5>as everyone knows, so we would expect them to come

0:07:21.320 --> 0:07:24.800
<v Speaker 5>down from where they are. How high, how far down

0:07:24.840 --> 0:07:28.760
<v Speaker 5>they go to be determined. But certainly what we are

0:07:28.840 --> 0:07:32.200
<v Speaker 5>seeing is, you know, there's a lot of reason for

0:07:32.240 --> 0:07:33.760
<v Speaker 5>people to be participating.

0:07:34.200 --> 0:07:36.160
<v Speaker 1>You also have private asset market.

0:07:36.880 --> 0:07:39.680
<v Speaker 5>You know, we're very happy with our new relationship and

0:07:39.720 --> 0:07:44.680
<v Speaker 5>partnership effort with Apollo twenty five billion dollars of fire

0:07:44.800 --> 0:07:49.320
<v Speaker 5>power to provide into non investment grade clients to help

0:07:49.360 --> 0:07:53.280
<v Speaker 5>getting deals done. So those are important parts of the equation,

0:07:53.760 --> 0:07:59.800
<v Speaker 5>and there are innovations out there to help clients responsibly grow, expand,

0:07:59.840 --> 0:08:00.520
<v Speaker 5>and acquire.

0:08:01.120 --> 0:08:03.640
<v Speaker 4>I'm glad you brought up the Apollo deal. Wondering more

0:08:03.680 --> 0:08:05.880
<v Speaker 4>on how it's going. Have you done your first set

0:08:05.920 --> 0:08:09.440
<v Speaker 4>of deals yet, how far along are you and how

0:08:09.440 --> 0:08:11.720
<v Speaker 4>many more conversations are you having just like it?

0:08:12.360 --> 0:08:16.760
<v Speaker 5>Well in the States, is the overwhelming portion at the

0:08:16.760 --> 0:08:20.000
<v Speaker 5>moment is roughly seventy percent to the private asset market.

0:08:20.320 --> 0:08:22.720
<v Speaker 5>So you've certainly got garnered a lot of attention by

0:08:22.760 --> 0:08:25.440
<v Speaker 5>the scale of this because I think it provides for

0:08:25.480 --> 0:08:29.440
<v Speaker 5>our clients more alternatives when they come to us when

0:08:29.520 --> 0:08:32.719
<v Speaker 5>we're originating and working with them, so they have more

0:08:32.760 --> 0:08:36.000
<v Speaker 5>alternatives and they have a lot of deal certainty. We've

0:08:36.040 --> 0:08:38.960
<v Speaker 5>worked a lot with Apollo over the last couple of

0:08:39.040 --> 0:08:42.440
<v Speaker 5>years on similar types of efforts, so we know each

0:08:42.480 --> 0:08:46.239
<v Speaker 5>other well, they know our origination, and that deal certainty

0:08:46.400 --> 0:08:49.040
<v Speaker 5>is very helpful for any of our clients.

0:08:50.120 --> 0:08:51.280
<v Speaker 1>I would expect us to.

0:08:51.240 --> 0:08:55.160
<v Speaker 5>Continue looking at how we can expand and bring in

0:08:55.240 --> 0:08:56.000
<v Speaker 5>other partners.

0:08:56.320 --> 0:08:57.079
<v Speaker 3>You know, it's interesting.

0:08:57.120 --> 0:08:59.240
<v Speaker 4>I've asked you about interest rates as it pertains to

0:08:59.240 --> 0:09:02.720
<v Speaker 4>your clients, also interested in how it pertains to your

0:09:02.800 --> 0:09:06.520
<v Speaker 4>net interestingcome do you think because rates might not fall

0:09:06.640 --> 0:09:10.160
<v Speaker 4>as much as initially expected, there's room for more NII

0:09:10.280 --> 0:09:12.720
<v Speaker 4>expansion here through this year and next.

0:09:12.600 --> 0:09:15.440
<v Speaker 1>Year when you look at the larger banks and look

0:09:15.480 --> 0:09:15.880
<v Speaker 1>at us.

0:09:16.360 --> 0:09:20.120
<v Speaker 5>We've got the benefit of a diversified business model. So

0:09:20.480 --> 0:09:23.280
<v Speaker 5>you ideally are looking at something where you know something

0:09:23.440 --> 0:09:27.959
<v Speaker 5>changes in the macro geopolitical environment. You've gone the ability

0:09:28.000 --> 0:09:32.160
<v Speaker 5>to move things around and adapt accordingly. So if we

0:09:32.320 --> 0:09:35.679
<v Speaker 5>end up with lower for longer or a higher for

0:09:35.760 --> 0:09:40.319
<v Speaker 5>longer environment, then we'll be the NII would benefit equally.

0:09:40.360 --> 0:09:44.600
<v Speaker 5>We had double digit nil growth last quarter. We've had

0:09:44.600 --> 0:09:48.760
<v Speaker 5>a strong focus on fees. We have banking franchise, our

0:09:48.800 --> 0:09:55.280
<v Speaker 5>wealth franchise, our services franchise, all growing very nicely taking share,

0:09:55.840 --> 0:09:59.240
<v Speaker 5>and you know that provides us additional cushion there.

0:10:00.120 --> 0:10:03.199
<v Speaker 4>A lot of investors are also very excited about the

0:10:03.280 --> 0:10:06.160
<v Speaker 4>financial sector right now because of this anticipation of an.

0:10:06.080 --> 0:10:07.400
<v Speaker 3>New regulatory regime.

0:10:08.000 --> 0:10:11.680
<v Speaker 4>Do you think that the BUZL three proposals will actually

0:10:11.840 --> 0:10:16.160
<v Speaker 4>be rolled back even further than that revised nine percent

0:10:16.800 --> 0:10:18.760
<v Speaker 4>increase in capital that has.

0:10:18.640 --> 0:10:19.280
<v Speaker 3>Been put forward.

0:10:20.080 --> 0:10:22.840
<v Speaker 5>When I look at BUZZLE three, we've had very constructive

0:10:22.880 --> 0:10:27.680
<v Speaker 5>discussions as a sector with the FED in terms of

0:10:27.720 --> 0:10:31.200
<v Speaker 5>looking at what are the unintended consequences of BUZZLE three,

0:10:31.320 --> 0:10:36.640
<v Speaker 5>because we need access to credit for small businesses, for consumers,

0:10:36.760 --> 0:10:40.920
<v Speaker 5>for farmers, for smaller banks and institutions, and this trickles down.

0:10:41.440 --> 0:10:43.240
<v Speaker 5>So I think the main goal here is to make

0:10:43.280 --> 0:10:47.440
<v Speaker 5>sure that there are no unintended ill consequences to access

0:10:47.440 --> 0:10:52.200
<v Speaker 5>to credit, to the competitiveness of the American banking system

0:10:52.240 --> 0:10:54.160
<v Speaker 5>that is the best in the world, and I say

0:10:54.200 --> 0:11:00.720
<v Speaker 5>that proudly, and also to market structure and making sure

0:11:00.760 --> 0:11:04.160
<v Speaker 5>that balance gets right. So I'm sure those dialogues will

0:11:04.200 --> 0:11:07.480
<v Speaker 5>continue to be constructive. We have to see what the

0:11:07.520 --> 0:11:10.720
<v Speaker 5>next proposal is though, I'm sure be another comment period

0:11:11.760 --> 0:11:13.280
<v Speaker 5>and then we shall.

0:11:13.120 --> 0:11:13.680
<v Speaker 1>Wait and see.

0:11:14.120 --> 0:11:18.560
<v Speaker 4>Should you face a more relaxed regulatory environment here, what

0:11:18.679 --> 0:11:20.280
<v Speaker 4>does that free you up more to do?

0:11:21.480 --> 0:11:24.560
<v Speaker 5>We have said a vision for our bank, we put

0:11:24.559 --> 0:11:28.280
<v Speaker 5>a strategy behind it, and we have an execution plan

0:11:28.400 --> 0:11:33.240
<v Speaker 5>that we are just systematically going through each different step

0:11:33.280 --> 0:11:37.040
<v Speaker 5>along the way. So for us, what this means is

0:11:37.520 --> 0:11:40.200
<v Speaker 5>our strategy is working. You could see that in our

0:11:40.280 --> 0:11:45.600
<v Speaker 5>third quarter results. Revenues up in every business, positive operating leverage,

0:11:45.679 --> 0:11:49.160
<v Speaker 5>gaining share, growing fees. We still have more work to

0:11:49.240 --> 0:11:51.839
<v Speaker 5>do and focus on the day job and getting that

0:11:52.000 --> 0:11:55.920
<v Speaker 5>job done properly, getting through the transformation work we need

0:11:55.960 --> 0:12:01.640
<v Speaker 5>to modernizing sit and simplifying city and improving our returns.

0:12:02.000 --> 0:12:04.440
<v Speaker 4>When you think about your returns, investors are asking so

0:12:04.600 --> 0:12:08.000
<v Speaker 4>much about cost discipline. What's the toughest part for you

0:12:08.440 --> 0:12:10.880
<v Speaker 4>to cut costs in order to get to the targets

0:12:10.880 --> 0:12:12.080
<v Speaker 4>that you've set out for yourself.

0:12:12.400 --> 0:12:16.240
<v Speaker 5>We're making sure that we both get the bank to

0:12:16.280 --> 0:12:18.600
<v Speaker 5>be more efficient and get it to be more simple,

0:12:19.200 --> 0:12:23.400
<v Speaker 5>so that modernization and simplification agenda is very important.

0:12:23.800 --> 0:12:25.079
<v Speaker 1>That also means investing.

0:12:25.440 --> 0:12:28.720
<v Speaker 5>The transformation that we're doing is both addressing some of

0:12:28.760 --> 0:12:32.520
<v Speaker 5>the regulatory issues that were raised, but they're also in

0:12:32.559 --> 0:12:36.320
<v Speaker 5>the benefit of shareholders because ultimately they drive to a

0:12:36.360 --> 0:12:41.080
<v Speaker 5>more efficient, modern organization. We also need to be investing

0:12:41.080 --> 0:12:44.920
<v Speaker 5>in our businesses, so it's driving forward on critical investments

0:12:44.960 --> 0:12:49.800
<v Speaker 5>and platforms that will help support our competitive advantage. And

0:12:49.840 --> 0:12:55.360
<v Speaker 5>it's simplifying the bank. We've successfully reorganized the institution. We've

0:12:55.360 --> 0:12:59.880
<v Speaker 5>realized benefits from it. We've realized benefits from the cost

0:13:00.240 --> 0:13:02.120
<v Speaker 5>takeouts we've done from divesting.

0:13:02.760 --> 0:13:04.720
<v Speaker 1>For me, it's about getting it right.

0:13:05.160 --> 0:13:08.960
<v Speaker 5>I don't want to take short term fixes and shortcuts

0:13:09.200 --> 0:13:11.679
<v Speaker 5>at the expense of making sure that this bank has

0:13:11.760 --> 0:13:14.880
<v Speaker 5>run well properly in the benefit of all stakeholders.

0:13:15.120 --> 0:13:19.000
<v Speaker 4>What a more relaxed regulatory environment also potentially lead to

0:13:20.400 --> 0:13:21.199
<v Speaker 4>less expenses.

0:13:23.280 --> 0:13:27.800
<v Speaker 5>It ultimately our transformation will lead to less expenses. I

0:13:27.840 --> 0:13:31.280
<v Speaker 5>look at it not just from the banking perspective. I

0:13:31.320 --> 0:13:33.000
<v Speaker 5>look at it from all of our clients.

0:13:33.000 --> 0:13:33.880
<v Speaker 1>And I think that's.

0:13:33.720 --> 0:13:37.680
<v Speaker 5>Why we see this big unlock, because over a regulation

0:13:38.280 --> 0:13:41.679
<v Speaker 5>can result for a client in being slower, it can

0:13:42.200 --> 0:13:45.000
<v Speaker 5>adding costs where it doesn't need to, it can affect

0:13:45.080 --> 0:13:48.800
<v Speaker 5>competitive advantage, and I think it's how do you get

0:13:48.800 --> 0:13:53.679
<v Speaker 5>the pendulum in the right place. A tapering of regulation

0:13:53.840 --> 0:13:58.080
<v Speaker 5>will certainly help multiple industries make sure that we get

0:13:58.080 --> 0:13:59.720
<v Speaker 5>that balance into a good place.

0:14:00.080 --> 0:14:02.120
<v Speaker 4>When you're talking about balance as well, how do you

0:14:02.120 --> 0:14:04.680
<v Speaker 4>think about the ability to keep investing while you're keeping

0:14:04.679 --> 0:14:07.680
<v Speaker 4>an eye on expenses your investment bank in particular. We've

0:14:07.679 --> 0:14:09.840
<v Speaker 4>talked about it a lot. How do you think about

0:14:09.840 --> 0:14:12.560
<v Speaker 4>the trade off on bringing on new deal makers? You

0:14:12.679 --> 0:14:17.120
<v Speaker 4>have one very prize position still open potentially with the

0:14:17.200 --> 0:14:18.040
<v Speaker 4>new head of M and A.

0:14:18.559 --> 0:14:22.520
<v Speaker 5>Well, I think about bringing talent in and very carefully.

0:14:22.600 --> 0:14:25.280
<v Speaker 5>Because we've got some very strong talent in our own

0:14:25.360 --> 0:14:28.600
<v Speaker 5>organization whom we're very proud and they're doing a very

0:14:28.600 --> 0:14:31.360
<v Speaker 5>good job. We want to make sure it's not only

0:14:31.400 --> 0:14:34.520
<v Speaker 5>that they are strong players in of themselves, but that

0:14:34.560 --> 0:14:37.960
<v Speaker 5>they fit the culture the right way, that they understand

0:14:38.040 --> 0:14:42.239
<v Speaker 5>the power of the franchise. They're excited about the potential

0:14:42.280 --> 0:14:45.600
<v Speaker 5>that we have ahead and that they're going to play

0:14:46.000 --> 0:14:46.920
<v Speaker 5>on the team.

0:14:46.760 --> 0:14:48.280
<v Speaker 1>To try and drive that forward.

0:14:48.800 --> 0:14:51.200
<v Speaker 5>We haven't found it to be a problem to attract

0:14:51.240 --> 0:14:52.560
<v Speaker 5>great talent to City.

0:14:53.640 --> 0:14:57.240
<v Speaker 4>So very importantly here we're about a year since you

0:14:57.320 --> 0:15:02.640
<v Speaker 4>announced a very massive reorganization. Where do you stand now,

0:15:02.840 --> 0:15:05.680
<v Speaker 4>do you feel like you're almost done? And what does

0:15:05.720 --> 0:15:09.160
<v Speaker 4>City group the new City group? Well like under a

0:15:09.200 --> 0:15:11.240
<v Speaker 4>Jane phraser as you think about the path ahead after

0:15:11.280 --> 0:15:12.040
<v Speaker 4>this first phase.

0:15:12.640 --> 0:15:14.680
<v Speaker 5>So I always said this year is going to be

0:15:14.680 --> 0:15:19.160
<v Speaker 5>a pivotal year for our strategy, and again the third quarter,

0:15:19.400 --> 0:15:22.240
<v Speaker 5>and indeed the results through the year have shown that

0:15:22.320 --> 0:15:26.880
<v Speaker 5>the strategy is delivering. We did the reorganization, as you said,

0:15:27.080 --> 0:15:30.040
<v Speaker 5>announced it six months ago. We got it completed six

0:15:30.080 --> 0:15:36.800
<v Speaker 5>months later, which is pretty good time. We've managed to

0:15:36.840 --> 0:15:40.880
<v Speaker 5>get some layers taken out of the organization for in total,

0:15:40.920 --> 0:15:44.560
<v Speaker 5>which is a lot. We reorganized our different businesses so

0:15:44.600 --> 0:15:48.120
<v Speaker 5>that they were in the best position to compete looking

0:15:48.160 --> 0:15:51.560
<v Speaker 5>forward and the right configuration around it. We took out

0:15:51.600 --> 0:15:55.880
<v Speaker 5>a lot of complexity of different activities and bureaucracy that

0:15:55.960 --> 0:15:59.960
<v Speaker 5>weren't necessary. We've still been tweaking some things here and there.

0:16:00.360 --> 0:16:03.800
<v Speaker 5>You don't get it right first shot, I'm in one

0:16:03.880 --> 0:16:05.000
<v Speaker 5>hundred percent of the way.

0:16:05.320 --> 0:16:07.360
<v Speaker 1>I'm very happy where we got to.

0:16:08.160 --> 0:16:11.520
<v Speaker 5>Now, we're focused on driving the performance of the business,

0:16:11.920 --> 0:16:14.400
<v Speaker 5>and we're focused around making sure that we get our

0:16:14.400 --> 0:16:19.800
<v Speaker 5>transformation done properly, the right way and deliver the results

0:16:19.800 --> 0:16:23.000
<v Speaker 5>that we need to a lot of urgency around here,

0:16:23.400 --> 0:16:25.240
<v Speaker 5>a lot of focus and accountability.

0:16:25.800 --> 0:16:27.400
<v Speaker 3>Jane, We thank you so much for joining us.

0:16:27.400 --> 0:16:29.920
<v Speaker 4>That is Jane Fraser, of course, the CEO of City

0:16:29.960 --> 0:16:33.280
<v Speaker 4>Group down at City Groups New York headquarters, and of

0:16:33.280 --> 0:16:33.560
<v Speaker 4>course a.

0:16:33.520 --> 0:16:37.040
<v Speaker 2>Big thank you too. A Bloomberg News financial correspondent Ushanali

0:16:37.080 --> 0:16:40.120
<v Speaker 2>bask sitting down with City CEO Jane Fraser, just now

0:16:40.320 --> 0:16:41.840
<v Speaker 2>in Lower Manhattan