“We've talked about how we've reduced the historical principal businesses -- the historical principal investments by $9 billion this year. We set a target for $15 billion by next year, which we'll meet and then close to zero two years later.”

In context

“ells us that it doesn't stay short -- it doesn't stay closed for multiple years at a time. There is an adjustment. We're making the adjustment. Yes, the world's uncertain. As we mentioned, that could be a headwind. But I do think it will improve. And that business performs well. And we firmly believe that, that business is a mid-teens through the cycle business, the way we've materially grown our wallet shares, the way we've grown our financing footprint, which adds more balance to the business and with our market-leading franchises across that business. Second, we have the Asset & Wealth Management business, which we believe is mid-teens or higher returns as we reduce the historical principal and make it a lower capital business. We're on that journey. I think you see us making progress. We've talked about how we've reduced the historical principal businesses -- the historical principal investments by $9 billion this year. We set a target for $15 billion by next year, which we'll meet and then close to zero two years later. And so that business, we have a high degree of confidence we'll operate at mid-teens or higher as we reposition it. As we've also stated, we're reducing the drag in our platforms. We're narrowing the platforms and reducing the drag. And we're relatively confident that over the next 12 to 24 months, we'll make materially more progress in that. So you add that up with what we have and I think you can get very comfortable with the mid-teens target. Now, the Basel rules. The Basel rules, if they were implemented as they're position now would be a headwind to that but also that doesn't account for how we optimize and how we pass through pricing. We've seen things before. I'm not to saying it won't be a headwind, but I don't want to speculate on what it would do to our targets until we actually”