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Speaker 1: Robin, it's great to see you.

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Speaker 2: Romaine, it's great to be with you.

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Speaker 3: Thanks for coming down to our world headquarters down here

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Speaker 3: in downtown New York City.

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Speaker 4: Absolutely, it's an amazing headquarters. And of course you are

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Speaker 4: really at the seat of where basically the US financial

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Speaker 4: industry began, and the history of this company of Bank

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Speaker 4: of Bank of New York Melon and of course its

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Speaker 4: roots going all the way back to Alexander Hamilton two

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Speaker 4: hundred and forty years ago.

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Speaker 3: Yeah, so we were founded, as you said, next year's

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Speaker 3: our two hundred and forty anniversary, which we're really proud of.

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Speaker 3: Alexander Hamilton just about a mile from here, five years

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Speaker 3: before the signing of the Constitution. I think as he

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Speaker 3: looked out today on New York City, he probably wouldn't

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Speaker 3: recognize it at all. What he might recognize, though, is

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Speaker 3: all the innovation that we do here at the Bank

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Speaker 3: of New York Mellon, and we're really proud of the

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Speaker 3: fact that we've really been driving through all of that

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Speaker 3: over the course of the past few recent years. We've

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Speaker 3: been doing real time payments, we've been launching new wealth

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Speaker 3: technology platforms, investing in AI. It really is not the

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Speaker 3: company that he started with, but I'd like to think

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Speaker 3: that he'd be.

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Speaker 2: Pretty proud of what we've been doing.

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Speaker 4: It's interesting to think about just how much the world

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Speaker 4: has changed over those two hundred and forty years, and

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Speaker 4: more importantly, all of the crises, the wars, the economic

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Speaker 4: issues that have come and gone since then, and yet

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Speaker 4: B and y Melon is still here. We came into

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Speaker 4: this year with I guess, a lot of challenges economically,

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Speaker 4: we ended up with origional banking collapse. To a certain

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Speaker 4: extent here what sort of gets a bank like this,

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Speaker 4: a financial firm like this, I should say, to two

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Speaker 4: hundred and forty years without falling victim to all of

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Speaker 4: those crises that come along the way.

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Speaker 3: When we talk a lot here at the firm about

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Speaker 3: strategy being important, but we also talk about the fact

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Speaker 3: that execution is important and culture is really a key

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Speaker 3: driver of our success over time. And if you want

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Speaker 3: to get old in industry these days, you have to

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Speaker 3: recognize that you both have to be an innovator, but

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Speaker 3: you also have to take care of making sure that

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Speaker 3: you're a remarkably strong institution. And for us, we've resilience

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Speaker 3: as a commercial attribute that can be operational resilience. We've

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Speaker 3: seen that more recently. You talked about a lot of

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Speaker 3: things that have happened in the world. We saw that

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Speaker 3: more recently with some bumps in the treasury market as

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Speaker 3: a result of one fairly large institution having some issues.

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Speaker 3: We've also seen it earlier in the year, as you mentioned,

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Speaker 3: with some of the smaller regional banks having some issues.

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Speaker 3: And so we've provided our balance sheet, the strength of

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Speaker 3: our platforms, our client focus to already wrap ourselves around

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Speaker 3: our clients and to help them make their way through

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Speaker 3: all these events. And that's what gives us the longevity

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Speaker 3: and the success that we've enjoyed.

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Speaker 4: When you look back to the original banking collapse, the

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Speaker 4: collapse of SVB and of course a signature of First

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Speaker 4: Republic and some of the other banks that got caught

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Speaker 4: up in that, were you actually surprised that that happened.

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Speaker 3: Well, what I would say is the FED has had

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Speaker 3: a lot of work to do as it's combated inflation

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Speaker 3: and those types of changes. We've had over five hundred

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Speaker 3: basis points of increase in FED funds rate in a

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Speaker 3: fairly short period of time. That's going to create dislocations,

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Speaker 3: and I think what that shines a light on is

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Speaker 3: that you really have to be If you're a large bank,

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Speaker 3: you have to be very focused on ourset and liability management.

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Speaker 3: You have to be good at it too, and you

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Speaker 3: have to be focused on being prepared. You said earlier

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Speaker 3: on Remain, there's so many different things going on in.

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Speaker 2: The world these days.

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Speaker 3: We've got wars, we've got significant gyrations in economies, We've

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Speaker 3: had a big run up in the stock market, we've

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Speaker 3: had a big run up in rates, we've had record

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Speaker 3: issuance from the treasury, And so that teaches us, and

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Speaker 3: we've had this lesson over a long period of time

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Speaker 3: that you really have to be prepared for the unexpected.

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Speaker 3: So while I hope I know what might be happening

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Speaker 3: in the future, we are not in the predictions business.

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Speaker 2: We're in the preparedness business.

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Speaker 3: And I think that that is the lesson that I

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Speaker 3: would take from all of these things that we've seen

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Speaker 3: this year.

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Speaker 4: What type of economy are you preparing for it right

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Speaker 4: now heading into twenty twenty four.

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Speaker 3: Well, inherent in the world being prepared for all the

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Speaker 3: eventualities is you have to be prepared for lots of

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Speaker 3: different types of the economy. I'm certainly rooting for the

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Speaker 3: fact that we'll have a soft landing, and I think

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Speaker 3: the Fed deserves, frankly an a grade for all the

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Speaker 3: things they've done this year and how they've managed the

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Speaker 3: nuance the treasury as well they've issued They've managed to

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Speaker 3: issue it a little bit in the shorter end of the curve.

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Speaker 2: That's helped markets.

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Speaker 3: So things so far, so good. We've had a good

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Speaker 3: run up in the stock market this year. I think

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Speaker 3: we can feel quite pleased with where we are. But

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Speaker 3: you said it, there's a lot going on in the world.

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Speaker 3: Things can take a different turn, and so for us,

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Speaker 3: it's really about making sure that we're partnering with clients

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Speaker 3: and we're using our platforms, our market leading platforms, to

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Speaker 3: be able to wrap ourselves around our clients, to be

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Speaker 3: able to help them navigate that we touched twenty percent

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Speaker 3: of all investable assets in the world. We operate in

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Speaker 3: one hundred markets across the world, and so being able

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Speaker 3: to really be there for our clients through the uncertainty,

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Speaker 3: that's what allows us to be successful.

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Speaker 4: And that position also gives you a really unique bird's

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Speaker 4: eye view as to the health of the financial system.

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Speaker 1: Is it healthy right now.

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Speaker 3: I think the US economy is really performed remarkably well.

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Speaker 3: When I visit with clients around the world, it is

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Speaker 3: a common refrain that there are lots of uncertainties in

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Speaker 3: the world, but the US economy has been a place

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Speaker 3: to invest the people of the country. The innovation that

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Speaker 3: we see here has really been powering us through some

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Speaker 3: of these uncertainties, and it is an investment destination of choice,

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Speaker 3: and I think that's one of the reasons why you've

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Speaker 3: seen the US economy outperform a little bit this year

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Speaker 3: versus what many of us might have thought at the

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Speaker 3: beginning of the year.

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Speaker 4: There's been a lot of discussion about the role of banks,

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Speaker 4: particularly the systemically important banks, which bny Mellon is among

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Speaker 4: that group, in the health of the economy going forward.

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Speaker 4: Just last week you were on Capitol Hill what I

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Speaker 4: think was your sort of inaugural trip to a Capitol

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Speaker 4: Hill for the oversight here. Congratulations on that you survived,

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Speaker 4: Thank you, But I am curious about the line of questioning.

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Speaker 4: This ostensibly was about the health of the banking sector,

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Speaker 4: but of course it really devolved more into a discussion

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Speaker 4: about capital rules, the basil three endgame here, and there

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Speaker 4: seemed to be a pushback. There was almost unanimous amongst

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Speaker 4: you and your seven peers that were up there that

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Speaker 4: day that those rules that endgame needs to be watered

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Speaker 4: down just a little bit.

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Speaker 3: I think the message that you really heard from the

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Speaker 3: eight firms, as you say, the largest and most systemically

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Speaker 3: important companies in the banking sector in the United States,

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Speaker 3: and many of the policy makers, by the way, was

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Speaker 3: that the US economy is the greatest economy that the

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Speaker 3: world has ever seen, and in order to be able

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Speaker 3: to have an economy like that, you need the lifeblood

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Speaker 3: of an economy, which is the investment of capital, the

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Speaker 3: powering of the economy through the financial system. And we

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Speaker 3: have eight of the strongest banks, thanks in many parts

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Speaker 3: to the work that's been done by policymakers and regulators

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Speaker 3: over the past of the fifteen years to really make

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Speaker 3: sure that we have a safe.

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Speaker 2: And secure banking system.

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Speaker 3: But we were also telling the message of the fact

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Speaker 3: that we don't want to mess that up and we

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Speaker 3: want to make sure that we can continue to support

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Speaker 3: the US economy through everything that comes over the course

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Speaker 3: of the next few years. And that was the common

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Speaker 3: refrain to me last week.

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Speaker 4: If the BAZO three end game rule proposal that came

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Speaker 4: out in July, if that stands as was proposed, does

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Speaker 4: that hurt your business?

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Speaker 3: Look, I think that policymakers are being very thoughtful about this,

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Speaker 3: and I do expect that it will evolve a little bit.

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Speaker 3: But I'll give you the way that I think about

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Speaker 3: the metaphor here. We want a safe banking system, there's

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Speaker 3: no question about it. We want safe cars driving on

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Speaker 3: highways too, but we don't make a choice to have

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Speaker 3: them drive at ten miles an hour because that would

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Speaker 3: reduce freedom of movement.

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Speaker 2: It would devastate the economy.

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Speaker 3: So we make trade offs around making sure that we've

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Speaker 3: got the right safety but at the same time that

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Speaker 3: we can really help to power the economy. And I

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Speaker 3: think that holds true for banks as well. They need capital,

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Speaker 3: they need liquidity, they have it, but we need them

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Speaker 3: to be able to contribute to the economy as well.

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Speaker 4: Are you still in negotiation with regulators and legislators about

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Speaker 4: what comes next with those rules?

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Speaker 3: Well, I think the good thing about rule making and

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Speaker 3: policy making is not a negotiation. At the end of

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Speaker 3: the day, policymakers and regulators make the rule, but we're

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Speaker 3: very happy that there's been feedback has been taken from

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Speaker 3: the bank.

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Speaker 1: But you're away in too.

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Speaker 3: Of course, we provide our opinion, and that's one of

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Speaker 3: the great things about the policymaking process. We provide our perspective,

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Speaker 3: and I think we have a good perspective to offer

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Speaker 3: here at the bank.

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Speaker 1: And you're not a stranger to Washington.

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Speaker 4: I mean, before you rose to be CEO here, I mean,

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Speaker 4: you spent a lot of time as a risk manager,

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Speaker 4: as a policy person. I even remember when Wills announced

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Speaker 4: that you were taking over the CEO role here a

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Speaker 4: year or so ago. Your former boss at Goldman, Lloyd Blankfein,

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Speaker 4: was very complimentary to you, saying that he was the

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Speaker 4: faith that we wanted to put forward and watching him

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Speaker 4: because you were so humble and unassuming, and I guess

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Speaker 4: had a way of disarming people.

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Speaker 3: Well, look, what we're really about at bny Mellon is

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Speaker 3: our clients and bringing our platform to serve our clients.

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Speaker 3: And so the message that I take to d C

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Speaker 3: but also elsewhere when I travel around the world is

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Speaker 3: that we have this incredible platform. We're trying to help

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Speaker 3: our clients being able to make their way in the world.

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Speaker 2: Economy.

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Speaker 3: We provide critical services to the world economy, including right

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Speaker 3: here in the United States. We want to make sure

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Speaker 3: that the rules and the policy making is keeping us safe,

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Speaker 3: but at the end of the day, allowing us to

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Speaker 3: make sure that the US economy stays the most vibrant

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Speaker 3: in the world.

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Speaker 4: I do want to talk about some of your products,

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Speaker 4: relatively new products as well, particularly in the wealth management space.

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Speaker 4: A little bit earlier, Pershing, your UNI Pershing ruled out

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Speaker 4: a new platform called Wove.

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Speaker 1: Explain that to me.

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Speaker 3: So across our firm, we think about our business as

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Speaker 3: being a series of different platforms that our clients can

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Speaker 3: then build their businesses on. And so the example of

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Speaker 3: Wove is an example of our wealth management infrastructure business.

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Speaker 3: It's software, it's services that help broker dealers and rias

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Speaker 3: provide services to all people in America that are saving

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Speaker 3: for their retirement and for future prosperity. That platform is

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Speaker 3: providing tools that allow advisers to do their jobs better.

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Speaker 3: And actually we say internally that our KPI for that

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Speaker 3: business is making a advisors more productive in serving their clients.

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Speaker 2: That's what it's about.

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Speaker 4: You also struck a deal, and I don't know if

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Speaker 4: the product has come out yet with lunit over in

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Speaker 4: Abu Dhabi to expand your presidence in the Middle East here,

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Speaker 4: what was the financial commitment to that and when do

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Speaker 4: we expect to actually see that roll out?

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Speaker 2: So that's another example of innovation.

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Speaker 3: So the common denominator across all of these things that

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Speaker 3: you're talking about Romain is innovation. We're bringing new products

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Speaker 3: to market to be able to serve our clients better,

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Speaker 3: to be able to serve new clients or in new

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Speaker 3: regions in the case that you just raised there, and

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Speaker 3: that's a place where we're taking our world leading wealth

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Speaker 3: management technology and we are partnering with clients that are

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Speaker 3: in the Middle East to be able to provide those

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Speaker 3: services to local clients. And we're excited about how that's

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Speaker 3: going to evolve over time, but its early days.

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Speaker 1: Is that region a priority for growth? Right now?

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Speaker 3: Forty percent of our revenues as a company approximately come

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Speaker 3: from outside of the United States. So I don't want

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Speaker 3: to be flip, but kind of the world is royster

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Speaker 3: when it comes to.

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Speaker 4: A lot of market viewed more to Europe rather than

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Speaker 4: to the Middle East or Asia.

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Speaker 2: Actually we serve clients all across the world. Including the

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Speaker 2: Middle East.

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Speaker 3: We serve a lot of clients with our global products

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Speaker 3: in the Middle East, but it is a region that's

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Speaker 3: been growing, There's more investment available there, and so it's

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Speaker 3: certainly a place where we're trying to help our clients

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Speaker 3: move forward.

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Speaker 4: With regards to the structure of the business, particularly with

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Speaker 4: the investment arm. A lot of people always sort of

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Speaker 4: describe B and Y as kind of this umbrella of

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Speaker 4: boutique firms that are all kind of there. I know

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Speaker 4: one of the things that you've said publicly when you

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Speaker 4: took over, as well as Honika Smiths, who leads that division,

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Speaker 4: has said publicly about trying to break down some of

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Speaker 4: those silos and having those different boutiques kind of work

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Speaker 4: as one.

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Speaker 1: How much progress have you made.

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Speaker 3: On that When I look across the whole of the company.

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Speaker 3: This is a little bit the story of our more

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Speaker 3: recent past. We have been a firm that has had

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Speaker 3: a series of separate, vertically integrated businesses and they've performed

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Speaker 3: extremely well. They've innovated, they have served their clients. But

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Speaker 3: one of our strategic pillars that we launched a couple

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Speaker 3: of months ago for the company is to be more

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Speaker 3: for our clients, and one of the key premises of

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Speaker 3: that is to make sure that we are introducing clients

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Speaker 3: of one business to the other product, services and.

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Speaker 2: Platforms that we actually have.

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Speaker 3: And we haven't lived up to our potential as a

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Speaker 3: firm in making sure that all of our clients have

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Speaker 3: access to all of our products and services.

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Speaker 2: And I think what you're talking.

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Speaker 3: About in investment management is just one example of that.

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Speaker 3: And so as we bring our real values of our

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Speaker 3: employees to bear, making sure that we are approaching our

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Speaker 3: company to be commercial, to really drive execution, we're really

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Speaker 3: seeing the potential to be able to do more for

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Speaker 3: our clients across our services.

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Speaker 1: Are you hiring right now?

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Speaker 2: We're always hiring.

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Speaker 3: This year actually, we had our largest ever campus analyst

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Speaker 3: class joining us.

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Speaker 2: We doubled it from the year before.

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Speaker 3: That infusion of new talent into the company is an

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Speaker 3: important part of the way forward. So we're always hiring

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Speaker 3: and and we're excited to be able to continue to

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Speaker 3: grow that campus program, just as one example.

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Speaker 4: In addition to other products that have either been larger

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Speaker 4: or be talked about about. A year ago, there was

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Speaker 4: a lot of discussion about the new crypto product. There

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Speaker 4: has been a lot of discussion about it since, maybe

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Speaker 4: for obvious reasons, but as you know, there's been a

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Speaker 4: lot of discussion about a new bitcoin ETF coming to market.

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Speaker 4: I think you were listed as a cash custodian for

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Speaker 4: the black Rock ETF filing here or where do we

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Speaker 4: stand right now with that?

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Speaker 3: So we're a servicer to many ETF providers. It's a

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Speaker 3: big source of growth for us, and we're excited to

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Speaker 3: do it, including in the tokenized market. But how a

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Speaker 3: focus in digital assets right from the very beginning has

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Speaker 3: been the technology and the promise of the technology to

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Speaker 3: really power economic development around the world. Tokenization being able

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Speaker 3: to bring new products into the market as a result

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Speaker 3: of the ease of use through the digital asset technology,

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Speaker 3: and that continues to be our main focus and I

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Speaker 3: expect that it's going to be pretty significant over time.

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Speaker 2: But we'll have to see that either of us.

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Speaker 4: Of course, includes more, much more real time payments, real

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Speaker 4: time settlements, basically going from however many days it was

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Speaker 4: in the past to effectively, you know, zero seconds, as.

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Speaker 1: Can be done here. Does that aid a business like yours?

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Speaker 4: Do you actually find yourself maybe in a better position

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Speaker 4: when once we move to a world where those settlements

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Speaker 4: and those are transaction lags are basically eliminated.

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Speaker 3: Well, digital assets and tokenization is one form of innovation,

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Speaker 3: but you're hitting on something very important, which is real

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Speaker 3: time payments. The clearinghouse has real time payments rails, and

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Speaker 3: then this year the FED. Now we're actually the first

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Speaker 3: bank to make payments on the real time payment rails

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Speaker 3: of the clearinghouse, and we're an early innovator.

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Speaker 2: With the FED as well.

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Speaker 3: I do think there's real promise in that technology to

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Speaker 3: be able to make it easier and bring more control

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Speaker 3: for both consumers and businesses to be able to make payments.

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Speaker 3: You don't have to wait with the uncertainty of when

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Speaker 3: will the check clear, as an example, or when will

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Speaker 3: the payment leave my account? When one's making bill payments.

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Speaker 3: You can have real time control with real time payments,

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Speaker 3: and that is that empowers consumers and I think that

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Speaker 3: that's a great innovation.

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Speaker 1: I just want to talk quickly about earning.

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Speaker 4: Your most recent earning showed a pretty significant rebound from

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Speaker 4: some of the issues that we saw earlier.

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Speaker 1: In the year.

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Speaker 4: Is that going to continue and more importantly, what is

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Speaker 4: sort of the growth narrative that you give to investors

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Speaker 4: right now.

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Speaker 3: The key growth narrative for our investors is that we

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Speaker 3: are a two hundred and forty year old institution that

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Speaker 3: serves ninety eight percent of all banks around the world,

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Speaker 3: ninety percent of Fortune one hundred companies, and we are

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Speaker 3: a platforms business that can help them to drive forward.

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Speaker 3: And what our clients are seeing, and I'd like to

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Speaker 3: think that our investors are seeing it too, is that

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Speaker 3: there is potential, untapped potential at bny Melon, which is

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Speaker 3: really helping us to be able to provide more and

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Speaker 3: better services.

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Speaker 2: To our clients.

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Speaker 4: And the growth under your leadership will be organic or

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Speaker 4: will it be more of sort of the M and

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Speaker 4: A style that we saw from some of your predecessors.

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Speaker 3: Well, our first order of business in growth. I'm glad

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Speaker 3: you mentioned growth because we do view ourselves as growing

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Speaker 3: and we're very proud of our performance this year. We

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Speaker 3: made certain gave certain outlooks to the market at the

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Speaker 3: beginning of the year, and we recently reported that we

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Speaker 3: were on track for those particular metrics, and so for us,

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Speaker 3: it has been about really making sure that we are

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Speaker 3: making the most of our company. I talked about be

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Speaker 3: more for our clients. But we have two other pillars,

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Speaker 3: run our company better and power our culture. And culture

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Speaker 3: is a super important part of our journey because we

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Speaker 3: want to attract people to our platform and we want

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Speaker 3: to create that sense of belonging and potential for people

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Speaker 3: to be able to be the best they can be

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Speaker 3: when they're working here at our fun Well, that brings.

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Speaker 1: Us, I guess to workforce issues here.

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Speaker 4: As you know, work from home has been a big

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Speaker 4: topic of conversation amongst all the major corporations here. How

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Speaker 4: where do you stand right now with regards to getting

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Speaker 4: your folks back into the office US.

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Speaker 3: Well, the short answer is very well, we welcomed our

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Speaker 3: people back, and this is quite a while ago. We

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Speaker 3: don't really talk that much about the topic anymore because

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Speaker 3: I think we've hit a very good rhythm. We do

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Speaker 3: believe in flexibility. We want people to be able to

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Speaker 3: mix their lives and their work properly. We're actually doing

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Speaker 3: an experiment this year where for the last two weeks

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Speaker 3: of December, we're focused on our critical client service. We're

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Speaker 3: focused on important priorities, but we've tried to down the

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Speaker 3: tempo of just the internal bureaucracy of running a company

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Speaker 3: and we're giving our people a December recharge period, and

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Speaker 3: that's a good example of flexibility. People can be here

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Speaker 3: in the office normally collaborating with colleagues, getting all the

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Speaker 3: benefits of actually being in the office, the mentoring, the

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Speaker 3: paying forward, the development, the energy that you get from

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Speaker 3: being here. But at the same time, there's a certain

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Speaker 3: humanity associated with letting people also make sure that they're

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Speaker 3: focusing on their lives, particularly in important times of year.

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Speaker 4: All right, Robin, we're basically a year into year tenure

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Speaker 4: as CEO more or less right now. Hopefully there'll be

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Speaker 4: many more years to come. What do you think you've

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Speaker 4: learned over this past year that maybe you didn't know

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Speaker 4: prior to getting this job.

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Speaker 3: Well, it's a real privilege to be a CEO of

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Speaker 3: an institution like BNY Melon. I've been proud to serve

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Speaker 3: our people. I'm proud to serve our shareholders, and I'm

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Speaker 3: very proud to be able to deliver services to our

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Speaker 3: clients as I represent the company in various different venues

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Speaker 3: around the world. And so to our people, I would

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Speaker 3: say thank you for everything that you've been doing this year.

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Speaker 3: To our clients, i'd say thank you for being clients

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Speaker 3: of ours and to our shareholders.

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Speaker 2: I'd like to think there's more to come.

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Speaker 1: All right, Robin, really appreciate you taking time for us today.

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Speaker 2: Great to be with you, Romaine. Thanks for coming down.