“we do also expect there are going to be some offset for us. So, lower credit risk RWAs and also, we'll probably benefit modestly from the more risk-sensitive market -- the market -- the more risk-sensitive, excuse me, market framework.”

In context

“ts moving higher for the G-SIB cohort, recognizing there is still no proposal, but I was hoping you could just speak to how you're scenario planning for the finalization of Basel III? Whether that has any influence on the potential cadence of future buybacks or just capital management, more broadly? How you see that potentially evolving? Emily Portney: Sure. So, look, we're obviously very involved with regulators in the industry around the conversations around Basel IV. It's true, of course, the introduction of operating or operational risk RWA into the standardized approach would, by itself, drive an increase in our standardized RWAs. When we crunch the numbers, our calcs suggest something a bit less than probably what you've seen for the GSIBs aggregate in the QIS. And there are also -- we do also expect there are going to be some offset for us. So, lower credit risk RWAs and also, we'll probably benefit modestly from the more risk-sensitive market -- the market -- the more risk-sensitive, excuse me, market framework. So, they'll be puts and takes. We'll have to wait, really, until the regulators release their proposed version. And we already -- and we do obviously -- for us, we're always looking at RWA optimization. You can actually see that RWAs came down in the quarter, again from optimization that we have been ongoing, that's ongoing and we've been doing. And I would just remind you, too, that the industry will have time to leg into whatever the results end up being. Steven Chubak: Fair enough. And just for my follow-up on expenses. I was hoping you can help us reconcile what the expense guidance for '23 implies for both the op margin and dollars of expense as it relates to the Securities Services segment specifically? It feels like that's the area where there's still some of the most low-hanging f”