The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst
: I guess my question was on the RWA mitigation. So I just -- I'm going to follow up in terms of Clark's answer to that question. So
you're pointing us to the $10 billion as the right area, which is a lot, it's a lot of RWA to take out. And I guess I'm wondering; number
one, could you give us a sense of how much has already been taken out and what's to come? And second, as we think about the net
interest income trajectory for next year, does the comment of the NII bottoming about here or in the fourth quarter, consider the
cost of the RWA mitigation that you have left?
Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst
: Got it. And, Chris, I guess, just the follow-up to there is Basel III Endgame clearly gives the banks time. And as you mentioned, the
moves that you're making in terms of improving the margin, being mindful of balance sheet size, being mindful of the expense base,
the target would be to improve CET1 generation from here. I guess how do you balance the notion of, okay, we have this $10 billion
of RWA reduction check that's done, and potentially we're ready to be a little bit more aggressive in the market or not? You tell me.
One of your peers said that they're ready for loan growth next year versus the notion of with U.S. Bank being freed from its category
2 commitments, whenever everyone runs the data on adjusted CET1, Key sort of ends up at the bottom of the list. So how do you
balance in terms of running the bank day-to-day, right, versus how your investors are thinking about KeyCorp in sort of this new
world order for regulation?
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