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    Betsy Graseck

    Managing Director and Global Head of Banks and Diversified Finance Research at Morgan Stanley

    Betsy Graseck is a Managing Director and Global Head of Banks and Diversified Finance Research at Morgan Stanley, specializing in U.S. large cap banks and the broader financial sector. She covers major companies such as JPMorgan Chase, Bank of America, Citi, Wells Fargo, Goldman Sachs, and Morgan Stanley itself, holding a notable track record that includes a 51% success rate and 1.8% average return on recommendations, as well as top rankings like Starmine’s #1 stock picker in U.S. Banks in 2018 and multiple Institutional Investor poll appearances. Graseck began her finance career at Gunma Bank before first joining Morgan Stanley in 1986, spent time as a consultant at KPMG from 1990-1992, and returned to Morgan Stanley, eventually assuming U.S. bank coverage in 2002 after covering Japanese financial stocks in Tokyo and later serving as Associate Director of Equity Research. She holds a BA from Cornell, an MBA from Columbia, the CFA designation, and has received industry recognition for her stock picking and earnings estimates.

    Betsy Graseck's questions to NORTHERN TRUST (NTRS) leadership

    Betsy Graseck's questions to NORTHERN TRUST (NTRS) leadership • Q2 2025

    Question

    Betsy Graseck asked for the rationale behind tightening the ROE target range to 13-15% and the company's line of sight on achieving the expense ratio improvements needed to support this higher target.

    Answer

    Chairman and CEO Michael O'Grady explained that with performance consistently in the upper half of the old range and greater certainty around the regulatory capital framework, the new 13-15% ROE target is appropriate. He added that the company is on a clear path to lower its expense-to-trust-fee ratio from 115% toward its target of 105-110%, which will directly support achieving the higher ROE.

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    Betsy Graseck's questions to NORTHERN TRUST (NTRS) leadership • Q1 2025

    Question

    Betsy Graseck asked for details on the strong capital markets activity seen late in the quarter and into April, and inquired about the strategy for the newly launched Family Office Solutions offering, including its target audience and international potential.

    Answer

    CEO Michael O'Grady explained that market volatility drove capital markets activity, specifically in foreign exchange and outsourced trading, with momentum continuing into April. He detailed that Family Office Solutions leverages existing capabilities for the ultra-high-net-worth segment ($100M+), aiming to enhance service for current clients and attract new ones by offering outsourced services like reporting and bill payment.

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    Betsy Graseck's questions to NORTHERN TRUST (NTRS) leadership • Q4 2024

    Question

    Betsy Graseck asked how Northern Trust has successfully reduced headcount in its Asset Servicing business while maintaining high service quality, a known historical challenge. She also inquired about the forward outlook for these efficiency gains and the expected duration of benefits from the new structure.

    Answer

    Chairman and CEO Michael O'Grady attributed the success to a fundamental organizational change: the creation of a Chief Operating Officer role to centralize, standardize, and automate operations. He stated this improves service and resiliency through technology investments. O'Grady added that while these are multiyear initiatives, the greatest benefits are expected in the next 2-3 years, with a structure designed for sustainable, ongoing efficiencies.

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    Betsy Graseck's questions to NORTHERN TRUST (NTRS) leadership • Q3 2024

    Question

    Betsy Graseck asked how the strategic focus on deepening client relationships differs from the past, where the biggest opportunities lie, and how this pivot will translate into profitability and ROTCE.

    Answer

    CEO Mike O'Grady described the 'One Northern Trust' strategy, which involves businesses collaborating to provide integrated solutions, citing a recent outsourced trading deal with Artemis as an example. He explained that profitability improves because incremental services to existing clients and scalable new business require fewer resources, thus boosting margins.

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    Betsy Graseck's questions to WELLS FARGO & COMPANY/MN (WFC) leadership

    Betsy Graseck's questions to WELLS FARGO & COMPANY/MN (WFC) leadership • Q2 2025

    Question

    Betsy Graseck from Morgan Stanley inquired about the expense trajectory over the next one to two years, asking if efficiencies could be realized from investments made during the asset cap period and how AI fits into their strategy. She also asked about the timing for revisiting the ROTCE target.

    Answer

    CEO Charles Scharf clarified that since the underlying consent order for the asset cap is still in place, they cannot yet assume material expense changes related to it. However, he stressed that significant efficiency opportunities exist elsewhere. CFO Michael Santomassimo noted that AI's impact is in its very early stages. Regarding the ROTCE target, Scharf stated they are not yet 'declaring victory' on the 15% goal due to a one-time gain in the quarter but will provide more information toward year-end.

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    Betsy Graseck's questions to WELLS FARGO & COMPANY/MN (WFC) leadership • Q2 2025

    Question

    Betsy Graseck of Morgan Stanley asked about the trajectory of expenses over the next couple of years, inquiring if the asset cap removal would unlock new efficiencies and how the company is positioned to leverage AI. She also pressed for timing on when the ROTCE target would be revisited.

    Answer

    CEO Charles Scharf stated that significant expense changes related to the asset cap are unlikely until the underlying consent order is fully lifted. He reiterated a focus on driving efficiencies across the company to fund investments. CFO Michael Santomassimo added that while it's very early for AI, pilots are underway in branches, operations, and call centers. Scharf clarified they are not yet declaring victory on the 15% ROTCE target due to a one-time gain and will provide updates toward year-end.

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    Betsy Graseck's questions to WELLS FARGO & COMPANY/MN (WFC) leadership • Q1 2025

    Question

    Betsy Graseck inquired about the tangible impacts of closing five consent orders, such as freeing up management time or reducing expenses, and asked for more detail on the drivers of future growth, both with and without the asset cap.

    Answer

    CEO Charlie Scharf explained that closing consent orders frees up significant management time and resources, allowing for a greater focus on running the business more efficiently. He stated that future growth with the asset cap on is driven by fee-based businesses like credit cards, wealth management, and investment banking. Without the asset cap, the company would have greater freedom to grow its balance sheet to facilitate more customer financing and deposit growth, ultimately aiming for a sustainable ROTCE of 15% and beyond.

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    Betsy Graseck's questions to WELLS FARGO & COMPANY/MN (WFC) leadership • Q4 2024

    Question

    Betsy Graseck of Morgan Stanley asked about the primary drivers for reaching the 15% ROE target, questioning if it would come from revenue growth or expense cuts. She also inquired about the recent management change in the credit card division.

    Answer

    CFO Mike Santomassimo explained that multiple paths exist to the 15% ROE target, with maturing profitability in the credit card and home lending businesses being significant contributors. CEO Charlie Scharf added that the 2025 outlook implies revenue growth is a key factor. Regarding the management change, he clarified that it was a natural retirement for the previous head, Ray Fisher, and that the strategy remains unchanged under the new leadership.

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    Betsy Graseck's questions to WELLS FARGO & COMPANY/MN (WFC) leadership • Q3 2024

    Question

    Betsy Graseck inquired about specific areas where Wells Fargo could increase asset growth once the asset cap is removed and whether the expenses tied to consent order remediation could be reduced afterward.

    Answer

    CEO Charlie Scharf identified wholesale deposits and the markets financing business as the primary areas that have been constrained and would see an immediate, though not dramatic, impact. Regarding expenses, he stated the company is not focused on reducing risk and control spending post-remediation, as the priority is embedding the changes into the culture. He noted that other significant efficiency opportunities exist elsewhere in the company.

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    Betsy Graseck's questions to REGIONS FINANCIAL (RF) leadership

    Betsy Graseck's questions to REGIONS FINANCIAL (RF) leadership • Q2 2025

    Question

    Betsy Graseck asked about the sustainability of the guided 150-250 basis points of positive operating leverage and the specific factors required for the net interest margin to potentially reach 4%.

    Answer

    President, CEO, & Chairman John Turner affirmed a commitment to delivering positive operating leverage over time. Senior EVP & CFO David Turner added that while they won't sacrifice necessary investments, positive operating leverage is a core part of their strategic planning. To reach a 4% NIM, he listed several key factors: a normalized yield curve, continued growth in core customer accounts, disciplined deposit cost management, and a favorable mix from high-yielding loan portfolios.

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    Betsy Graseck's questions to REGIONS FINANCIAL (RF) leadership • Q1 2025

    Question

    Betsy Graseck of Morgan Stanley asked for clarification on the forecast for 'front-end loaded' net charge-offs this year and questioned if the provision would be neutral since these losses were already reserved for.

    Answer

    Executive John Turner explained that higher charge-offs are expected in the first half of the year due to workouts in specific portfolios like office and senior housing, but the full-year forecast remains within the 40-50 bps range. Executive David Turner added that while the provision should track charge-offs, it could be higher due to loan growth or economic deterioration. John Turner noted the Q1 provision was also impacted by an increase in general reserves due to market uncertainty.

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    Betsy Graseck's questions to REGIONS FINANCIAL (RF) leadership • Q4 2024

    Question

    Betsy Graseck asked if the new loan system implementation in 2025 would lead to an expense roll-off. She also sought context on the plan to hire 140 bankers, asking how this compares to prior years and if it is a multi-year initiative.

    Answer

    Executive David Turner clarified there will be no appreciable expense savings from the new loan system in the near term, as its primary benefit is improved client service. He confirmed the 140 banker hires represent a multi-year plan (2-3 years) that will be phased in to maintain positive operating leverage. Executive John Turner added this represents a 10-20% headcount increase in the targeted business functions.

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    Betsy Graseck's questions to REGIONS FINANCIAL (RF) leadership • Q3 2024

    Question

    Betsy Graseck asked about the outlook for deposit growth as fuel for the balance sheet. She also inquired about investment plans for the capital markets business, specifically regarding any interest in the growing private credit space.

    Answer

    CFO David Turner expressed confidence in growing deposits by focusing on core checking accounts and leveraging the bank's attractive markets. CEO John Turner stated that while they are monitoring the private credit space, they have no specific plans to invest, as the focus remains on optimizing existing capital markets investments like M&A advisory.

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    Betsy Graseck's questions to TRUIST FINANCIAL (TFC) leadership

    Betsy Graseck's questions to TRUIST FINANCIAL (TFC) leadership • Q2 2025

    Question

    Betsy Graseck of Morgan Stanley asked for clarification on the Q2 restructuring charges, the pace of ongoing strategic investments, and the specific functionality of the new RTP payments feature.

    Answer

    CFO Mike Maguire confirmed the restructuring charges were almost entirely severance related to business repositioning, not the past merger. CEO William Rogers stated that the company can maintain its 1% expense growth target while continuing to invest in talent, technology, and digital platforms due to embedded cost-saving disciplines. He further explained the RTP feature allows corporate clients to make real-time disbursements to consumers using aliases like cell phones, enhancing speed and cash flow visibility.

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    Betsy Graseck's questions to TRUIST FINANCIAL (TFC) leadership • Q1 2025

    Question

    Betsy Graseck requested the specific yield pickup expected on the $42 billion of assets repricing through year-end and asked if Truist was changing its lending standards to achieve its loan growth targets.

    Answer

    CFO Michael Maguire stated the yield pickup is now expected to be 40-50 basis points lower than previously guided, landing in the 50-60 basis point range on average. CEO William Rogers firmly stated that lending standards are not changing and that growth is a result of strong execution, new client acquisition, and market expansion within their consistent risk framework.

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    Betsy Graseck's questions to TRUIST FINANCIAL (TFC) leadership • Q4 2024

    Question

    Betsy Graseck requested an explanation of Truist's expense outlook, specifically the drivers for the Q1 sequential decline and the ability to achieve positive operating leverage for the full year with only 1.5% expense growth.

    Answer

    CFO Mike Maguire attributed the Q1 expense decline to the normalization of elevated professional fees from Q4. CEO Bill Rogers added that the full-year guidance reflects ongoing efficiency initiatives that offset investments, noting that even with a record year in investment banking in 2024, overall expenses declined, demonstrating the company's cost discipline.

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    Betsy Graseck's questions to TRUIST FINANCIAL (TFC) leadership • Q3 2024

    Question

    Betsy Graseck requested clarification on what management means by "proper execution" to achieve its goals and asked about the primary drivers for achieving positive operating leverage in 2025.

    Answer

    CEO Bill Rogers clarified that "proper execution" refers to continuing the current momentum of deepening existing client relationships, a focus that is now possible with merger integration activities completed. He stated that positive operating leverage in 2025 will be achieved through a combination of factors, including momentum in investment banking, a return to loan growth, favorable deposit beta trends, and sustained expense discipline, ensuring no single point of failure.

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    Betsy Graseck's questions to US BANCORP \DE\ (USB) leadership

    Betsy Graseck's questions to US BANCORP \DE\ (USB) leadership • Q2 2025

    Question

    Betsy Graseck inquired about the specific drivers behind the accelerated growth in the C&I loan book and the current status of line utilizations. She also asked if there were any meaningful gains or losses from the recent asset sales.

    Answer

    Vice Chair & CFO John Stern reported that C&I growth was broad-based, with utilization rates ticking up 30-40 basis points. He highlighted strength in ABS lending, small business, and middle-market expansion. President & CEO Gunjan Kedia added that the build-out of new structured credit capabilities over the past few years is now contributing to this growth. John Stern confirmed there were no meaningful gains or losses on the asset sales beyond the associated reserve release.

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    Betsy Graseck's questions to US BANCORP \DE\ (USB) leadership • Q1 2025

    Question

    Betsy Graseck of Morgan Stanley asked for a definition of the 'market' U.S. Bancorp aims to match in payments growth and for details on the drivers of strong C&I lending.

    Answer

    CEO Gunjan Kedia defined the target payments market as the U.S. market, focusing on a specific credit box and profitable margins, distinct from low-margin large e-commerce. CFO John Stern attributed strong C&I loan growth to ABS lending, higher utilization rates, and expansion in middle-market lending.

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    Betsy Graseck's questions to US BANCORP \DE\ (USB) leadership • Q4 2024

    Question

    Betsy Graseck asked for details on the assumptions behind the NII guidance, specifically the forward curve used. She also inquired about the sensitivity of projections to fewer rate cuts or a higher long-end rate, and the quarterly cadence of fixed asset repricing throughout the year.

    Answer

    CFO John Stern stated the guidance is based on a forward curve that includes two rate cuts (in May and September) and a 10-year Treasury yield around 4.65%. He noted the bank is positioned to be neutral to short-end rate changes, but a steeper yield curve would be beneficial for NII. Stern confirmed that the pace of fixed asset repricing, involving $5-7 billion per quarter in loans and $3 billion per quarter in securities, is expected to be consistent throughout 2025.

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    Betsy Graseck's questions to US BANCORP \DE\ (USB) leadership • Q3 2024

    Question

    Betsy Graseck questioned the shift to a more precise full-year expense guidance of $16.8 billion and asked if Net Interest Margin (NIM) would expand further as interest rates decline.

    Answer

    CFO John Stern explained the expense guidance reflects greater certainty late in the year and is appropriate given NII is at the high end of its range. He confirmed that rate cuts are a net positive for NIM, citing a favorable initial deposit beta of ~30% that is expected to rise toward 50% over the cycle.

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    Betsy Graseck's questions to PNC FINANCIAL SERVICES GROUP (PNC) leadership

    Betsy Graseck's questions to PNC FINANCIAL SERVICES GROUP (PNC) leadership • Q2 2025

    Question

    Betsy Graseck from Morgan Stanley asked how Artificial Intelligence (AI) is contributing to the company's positive operating leverage and efficiency, inquiring whether its impact is nascent or already significant.

    Answer

    Chairman & CEO William Demchak explained that AI is already delivering significant savings in areas like fraud prevention and is a key part of their long-standing 'continuous improvement' program, which focuses on automation. He views AI as the 'next leg' of a multi-year trend of controlling personnel costs while investing in technology, rather than a single, dramatic change to the cost base.

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    Betsy Graseck's questions to PNC FINANCIAL SERVICES GROUP (PNC) leadership • Q1 2025

    Question

    Betsy Graseck asked for details on the appointment of Mark Wiedman as President, including his expected role and strategic fit. She also questioned if this signaled a larger push into private credit.

    Answer

    CEO Bill Demchak described Mark Wiedman as a great talent with a broad skill set who will run PNC's businesses and help execute the existing game plan. Demchak explicitly stated that the appointment does not signal a change in strategy or a move into private credit, emphasizing that PNC will continue with its current focus.

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    Betsy Graseck's questions to PNC FINANCIAL SERVICES GROUP (PNC) leadership • Q4 2024

    Question

    Betsy Graseck of Morgan Stanley asked if C&I loan weakness was driven by paydowns and whether the flat yield curve was altering financing choices. She also questioned if PNC was 'leaving money on the table' by holding significant liquidity at the Fed and if redeployment was factored into the NII outlook.

    Answer

    CEO Bill Demchak clarified that loan weakness stems from low utilization due to weak raw demand, not financing choices, noting that unfunded commitments are actually growing. He acknowledged that if loan growth remains muted, there is an opportunity to deploy excess cash for a higher yield, an upside not currently in the guidance.

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    Betsy Graseck's questions to PNC FINANCIAL SERVICES GROUP (PNC) leadership • Q3 2024

    Question

    Betsy Graseck from Morgan Stanley inquired about the medium-term outlook for PNC's organic growth. She asked whether the current pace is a good run rate or if there are factors that could lead to an acceleration.

    Answer

    CEO Bill Demchak stated there are 'legs on acceleration,' particularly in C&I from new market build-outs. He announced plans to more aggressively invest in the retail distribution franchise, including targeted branch builds in high-growth markets. He noted that the breakeven on a new branch is now easier to achieve. CFO Rob Reilly highlighted the strong momentum in Southwest markets as a key driver.

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    Betsy Graseck's questions to GOLDMAN SACHS GROUP (GS) leadership

    Betsy Graseck's questions to GOLDMAN SACHS GROUP (GS) leadership • Q2 2025

    Question

    Betsy Graseck asked about the rationale behind the significant 33% dividend increase and the expected impact of AI on the firm's overall efficiency.

    Answer

    Chairman & CEO David Solomon explained that the dividend increase reflects confidence in the durability of the firm's revenues and earnings capacity, with a primary goal of achieving a 'steady increase pattern' over time. Regarding AI, he highlighted its potential to create efficiency, automate processes, and free up resources for growth investments, mentioning a partnership with Cognition Labs to accelerate software development.

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    Betsy Graseck's questions to GOLDMAN SACHS GROUP (GS) leadership • Q1 2025

    Question

    Betsy Graseck inquired about the potential benefits of anticipated regulatory changes, particularly SLR reform, and asked for an explanation of why the firm's Value at Risk (VaR) declined despite heightened market volatility.

    Answer

    CEO David Solomon stated that while the firm is CET1 constrained, not SLR constrained, a holistic package of regulatory reforms would be a tailwind for the industry. Executive Denis Coleman explained that the lower VaR resulted from reduced exposures which offset the impact of elevated volatility.

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    Betsy Graseck's questions to GOLDMAN SACHS GROUP (GS) leadership • Q4 2024

    Question

    Betsy Graseck inquired about the specific drivers for improving the profitability of Platform Solutions in 2025-26 and how the new financing team structure will enhance revenue growth.

    Answer

    CEO David Solomon explained that the reduced drag from Platform Solutions is primarily driven by the improving performance and profitability of the Apple Card partnership. Regarding the new structure, Solomon described the creation of a 'Capital Solutions' group within Global Banking & Markets. This group integrates financing, sponsor coverage, and capital markets to provide a seamless 'One Goldman Sachs' experience for clients at the intersection of public and private markets, which they believe will accelerate growth.

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    Betsy Graseck's questions to GOLDMAN SACHS GROUP (GS) leadership • Q3 2024

    Question

    Betsy Graseck of Morgan Stanley inquired about the risk-weighted asset (RWA) implications of shifting capital from private investments to new loan offerings and asked for details on the GM card portfolio sale, including the closing timeline and future P&L impact.

    Answer

    CFO Denis Coleman explained that the shift is capital-efficient, as HPI RWA density is high while asset and wealth loan density is low. Regarding the GM card deal, Coleman stated it targets a Q3 2025 closing. Until then, Goldman Sachs will incur run-rate operating losses of around negative $50-$60 million per quarter.

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    Betsy Graseck's questions to BANK OF AMERICA CORP /DE/ (BAC) leadership

    Betsy Graseck's questions to BANK OF AMERICA CORP /DE/ (BAC) leadership • Q2 2025

    Question

    Betsy Graseck from Morgan Stanley asked about the allocation of risk-weighted assets (RWA) to the markets business and the bank's strategy for wind and solar investments following the recent tax plan changes.

    Answer

    CEO Brian Moynihan and CFO Alastair Borthwick clarified there is no ceiling on RWA for the Global Markets business, provided it achieves the required returns. Borthwick explained that new wind and solar tax credit investments will phase out by 2027, with the existing portfolio running off through 2033, while low-income housing tax credit investments will continue.

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    Betsy Graseck's questions to BANK OF AMERICA CORP /DE/ (BAC) leadership • Q1 2025

    Question

    Betsy Graseck asked how the threat of tariffs impacts the bank's investment plans in international markets. She also inquired about the current sentiment and investment behavior of small business clients.

    Answer

    CEO Brian Moynihan stated the bank would continue to invest where it sees opportunities, helping clients navigate supply chain realignments. He noted that small businesses are currently performing well but are unsettled by policy uncertainty, which is slowing some investment decisions.

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    Betsy Graseck's questions to BANK OF AMERICA CORP /DE/ (BAC) leadership • Q4 2024

    Question

    Betsy Graseck asked how rising small business optimism is translating into C&I loan demand and whether Bank of America is positioned to benefit from this trend.

    Answer

    CEO Brian Moynihan noted that while optimism is up, driven by hopes for a better regulatory climate, actual loan demand via line of credit utilization remains muted due to higher interest rates. He agreed the bank is well-positioned to benefit once that optimism translates into activity, highlighting that the largest dollar impact would come from increased borrowing in the middle-market commercial segment.

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    Betsy Graseck's questions to BANK OF AMERICA CORP /DE/ (BAC) leadership • Q3 2024

    Question

    Betsy Graseck inquired about the extent to which the rate environment has driven deposit trends and whether the pressure from sweep account pricing has passed. She also asked for color on the drivers behind the pickup in corporate loan demand late in the quarter.

    Answer

    CEO Brian Moynihan stated that overall deposits have grown for four consecutive quarters and that rate-driven movement from higher-balance clients has now stabilized. On loan demand, CFO Alastair Borthwick noted the late-quarter growth was broad-based across small business and commercial clients, though revolver utilization has not yet picked up, representing potential future upside.

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    Betsy Graseck's questions to STATE STREET (STT) leadership

    Betsy Graseck's questions to STATE STREET (STT) leadership • Q2 2025

    Question

    Betsy Graseck of Morgan Stanley asked for details on the recently announced partnership with the University of California to build a 'super app' for individuals, questioning the strategic rationale and its potential scalability.

    Answer

    CEO Ronald O'Hanley described the initiative as a strategic experiment aligned with their commitment to the growing wealth business. He explained that the partnership provides a large-scale platform to develop innovative, democratized investment offerings with the ultimate goal of creating a solution that could be leveraged in other markets.

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    Betsy Graseck's questions to STATE STREET (STT) leadership • Q1 2025

    Question

    Sought details on the NII outlook, asking about the underlying rate assumptions and the specific scenarios that would lead to the high or low end of the guided range.

    Answer

    The NII guide (flat YoY +/- low single digits) is based on market forward curves. The positive side of the range would be driven by tailwinds like strong loan growth, investment portfolio rollovers, and a 'higher for longer' rate environment which supports non-U.S. NII and slows noninterest-bearing deposit decline. The negative side would be driven by headwinds like rate cuts and unfavorable shifts in deposit mix.

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    Betsy Graseck's questions to STATE STREET (STT) leadership • Q1 2025

    Question

    Betsy Graseck of Morgan Stanley asked for details on the scenarios underpinning the Net Interest Income (NII) outlook of flat year-over-year, plus or minus low single digits, and what factors would drive results to the high or low end of that range.

    Answer

    Interim CFO Mark Keating detailed the NII outlook, which is framed by two potential tailwinds (loan growth, investment portfolio rollovers) and two potential headwinds (rate environment, deposit mix). He explained that upside could be driven by a slower decline in noninterest-bearing deposits, favorable deposit mix, central banks pausing rate cuts (especially non-U.S.), and elevated long-term rates. He confirmed the guidance is based on market forward curves.

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    Betsy Graseck's questions to CITIGROUP (C) leadership

    Betsy Graseck's questions to CITIGROUP (C) leadership • Q2 2025

    Question

    Betsy Graseck of Morgan Stanley requested an update on the status and timing of the Banamex IPO. She also asked if there was a specific market condition 'bogey' or threshold that would determine when the IPO proceeds.

    Answer

    CEO Jane Fraser stated there was no new update, but the firm remains on track with preparations, including finalizing audited financials, with a goal to be ready for an IPO by year-end. However, she noted the final timing depends on market conditions and regulatory approvals, which could push it into 2026. Both Fraser and CFO Mark Mason confirmed there is no specific market 'bogey,' emphasizing the goal is to maximize shareholder value at the right time.

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    Betsy Graseck's questions to CITIGROUP (C) leadership • Q2 2025

    Question

    Betsy Graseck of Morgan Stanley asked for an update on the status of the Banamex IPO and whether there was a specific market condition "bogey" that would determine the timing of the transaction.

    Answer

    CEO Jane Fraser reported no new updates, stating that preparations are on track to be in a position for an IPO by year-end, but the final timing is subject to market conditions and regulatory approvals, which could extend into 2026. CFO Mark Mason added that the goal is to maximize shareholder value and there is no specific market bogey for the IPO.

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    Betsy Graseck's questions to CITIGROUP (C) leadership • Q1 22025

    Question

    Betsy Graseck asked for clarification on the pace of the share buyback program and inquired about the progress of the firm's transformation, specifically the modernization of its infrastructure.

    Answer

    CFO Mark Mason stated the firm is targeting a 'similar level' of buybacks as the $1.75 billion in Q1, with the pace informed by the upcoming SCB results and client demand. CEO Jane Fraser added that returning capital is a priority. On the transformation, Fraser said she feels good about the progress, with benefits now visible in how the bank is run. She noted significant work has been done on data, risk management, and simplifying technology, though work remains.

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    Betsy Graseck's questions to CITIGROUP (C) leadership • Q4 2024

    Question

    Betsy Graseck questioned why Citigroup is not more aggressively utilizing its share buyback authorization, given the stock is trading below tangible book value, which she noted would be a highly accretive way to boost RoTCE.

    Answer

    CEO Jane Fraser affirmed her commitment to returning capital but noted that while a more aggressive Basel III scenario is off the table, there isn't complete certainty on future capital requirements. She stressed that the bar for growth investments is high, with a focus on attractive marginal RoTCE, and the $20 billion buyback program reflects a balance between these investments and returning capital to shareholders.

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    Betsy Graseck's questions to Bank of New York Mellon (BK) leadership

    Betsy Graseck's questions to Bank of New York Mellon (BK) leadership • Q2 2025

    Question

    Betsy Graseck from Morgan Stanley inquired about the impact of BNY Mellon's AI initiatives, specifically the ELISA platform, on the company's strong operating leverage. She asked if the benefits are already visible in the P&L and whether AI is primarily a revenue or expense story.

    Answer

    CEO & Director Robin Vince explained that AI is viewed as both a top-line and expense story, as it unlocks capacity that can be reinvested into higher-value activities. He stated that while it's still 'early days' with not a 'ton in the P&L right now,' the company is investing heavily in AI for the medium to long term. He expects the benefits to accelerate in 2026 and beyond as part of the broader strategy to drive positive operating leverage through multiple initiatives like the commercial and platforms operating models.

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    Betsy Graseck's questions to Bank of New York Mellon (BK) leadership • Q1 2025

    Question

    Betsy Graseck of Morgan Stanley asked about the P&L impact and timing of the Treasury Direct Express program moving to BNY's platform. She also sought clarification on the outlook for noninterest-bearing deposits (NIB) and what factors, other than rate cuts, could significantly impact Net Interest Income (NII).

    Answer

    CFO Dermot McDonogh indicated the Treasury Direct Express program win is a strong proof point for their model but will not have a visibly lumpy P&L impact, ramping up in late 2025. He expects NIB deposits to remain roughly in their current range. CEO Robin Vince added that the firm deliberately immunized 2025 NII and that positive operating leverage is the "North Star," with fees and controllable expenses being other important levers if needed.

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    Betsy Graseck's questions to Bank of New York Mellon (BK) leadership • Q4 2024

    Question

    Betsy Graseck of Morgan Stanley asked if the significant acceleration of the platform model rollout in 2025, covering a large percentage of employees, should lead to a corresponding step-up in operating leverage.

    Answer

    CEO Robin Vince clarified that there isn't a direct, immediate correlation. He explained the rollout has been a deliberate, multi-year process, and the most significant benefits, such as efficiency gains and higher velocity, typically materialize about a year after teams transition. He noted that other, shorter-term investments are expected to deliver the expense benefits guided for 2025.

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    Betsy Graseck's questions to Bank of New York Mellon (BK) leadership • Q3 2024

    Question

    Betsy Graseck questioned the scale of the 'plus' in the '100% plus' capital return guidance, suggesting room for optimization. She also asked if the entire firm would move to the new platform model and what the runway for efficiency improvements looks like.

    Answer

    CFO Dermot McDonogh indicated that given market uncertainty and the Archer acquisition, the full-year payout would likely remain near the 103% year-to-date level. He confirmed the goal is for 100% of the firm to be on the platform model over the next ~18 months, stressing it's a driver for growth and culture, not just efficiency. CEO Robin Vince added that the benefits from the new model will be a multiyear endeavor extending beyond the initial transition.

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    Betsy Graseck's questions to JPMORGAN CHASE & (JPM) leadership

    Betsy Graseck's questions to JPMORGAN CHASE & (JPM) leadership • Q2 2025

    Question

    Inquired about the specific drivers behind the increase in wholesale lending RWA, JPMorgan's strategy for stablecoins and its own deposit token, and whether the pause in open banking rules offers an opportunity to adjust pricing for fintech relationships.

    Answer

    The increase in wholesale lending was attributed to broad-based financing activity across various areas late in the quarter. On digital currencies, JPMorgan plans to be involved in both its own deposit token and other stablecoins to learn and compete. Regarding open banking, the focus is on ensuring data sharing is done properly with customer consent, transparency, and a clear liability shift for fraud, rather than on pricing.

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    Betsy Graseck's questions to JPMORGAN CHASE & (JPM) leadership • Q1 2025

    Question

    Betsy Graseck asked CEO Jamie Dimon for his perspective on how the next economic cycle might progress compared to past cycles. She also questioned the drivers behind wholesale loan growth and whether clients were drawing down credit lines for liquidity.

    Answer

    CEO James Dimon described the current environment as 'different' from past cycles, emphasizing that geopolitical stability is more critical than near-term economic performance. An executive, likely Jeremy Barnum, noted that while clients are discussing liquidity, the bank has not yet observed meaningful drawdowns on credit lines, suggesting anxiety has not reached a critical level.

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    Betsy Graseck's questions to JPMORGAN CHASE & (JPM) leadership • Q4 2024

    Question

    Requested details on the key drivers of the NII outlook, potential areas for loan growth inflection, and clarification on the specific business areas with the most opportunity for market share gains.

    Answer

    The main potential for loan growth inflection is in acquisition finance, dependent on M&A activity, as card loan growth is decelerating. The single biggest area of opportunity ('reds and ambers') is in the affluent segment of Wealth Management, where the bank feels it is significantly underpenetrated.

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    Betsy Graseck's questions to JPMORGAN CHASE & (JPM) leadership • Q3 2024

    Question

    Betsy Graseck of Morgan Stanley asked for clarification on the NII outlook, specifically if the end of QT was factored in, and inquired about Jamie Dimon's interest in using capital for portfolio acquisitions like private label credit cards.

    Answer

    CFO Jeremy Barnum confirmed that the potential end of QT is a factor in their outlook, which could turn deposit balances into a tailwind. He also clarified that recent management commentary on NII weakness referred to NII ex-Markets. CEO James Dimon reiterated his cautious stance on acquisitions in the current environment and stated there was 'no chance' of acquiring a private label card portfolio, though he remains open to re-evaluating if market conditions change dramatically.

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