“look, if we continue to see near-term favorability in our credit performance, that's going to bring down coverage all else equal over time, if we see a meaningful worsening in economic outlooks or changes in consumer credit behavior from what we see today that could put upward pressure on our coverage”

In context

“nswer on what the weighted average unemployment rate would be if we took into account the heavier weighting on the downside scenario. And as we look forward for Capital One stand-alone. How should we think about the ACL ratio given improved credit performance relative to the heightened macro uncertainty? And I did have a follow-up. Andrew Young : Yes. In terms of the weighted edge, Erica, our process is one where we take the baseline and then apply various considerations to the downside scenario and uncertainties. So it's not a formulaic multiple scenarios with multiple probabilities that allow us to give you a weighted average a leverage number, which is why we kind of give the qualitative description there. And then in terms of how we think about things looking ahead with the allowance, look, if we continue to see near-term favorability in our credit performance, that's going to bring down coverage all else equal over time, if we see a meaningful worsening in economic outlooks or changes in consumer credit behavior from what we see today that could put upward pressure on our coverage and just given the heightened uncertainty in which we're living at this point, I don't want to try to project where that's going to land a quarter from now until we'll go through our full process at the end of -- in the second quarter, and we'll see where the allowance ultimately lands. Erika Najarian: Got it. And just my follow-up question. implicit in your response to John Pancari's question, are you also affirming the purchase accounting assumptions from February of 2024? And just confirming that there any adjustments to be made given the heightened uncertainty to the Discover portfolio in terms of credit going forward, it would be on the day 2 provision, of course, not the purchase credit impaired mark. Andrew Young : Right. Well, we're going to segment their portfolio for PCD and non”