“In terms of deposit betas, I wouldn't necessarily assume that deposit betas are symmetrical. If you look historically, deposit betas tend to be a bit higher on the -- in the easing cycle than they are in a tightening cycle. And so, while we certainly haven't made any decisions exactly about what we'll do with deposit rates, I think that's a reasonable expectation.”

In context

“r. Operator, can you please remind everyone how they may ask a question? Operator: [Operator Instructions] Our first question comes from Brian Bedell from Deutsche Bank. Please go ahead. Brian Bedell: Great. Thanks very much for the presentation. Maybe just, Peter, could you talk about your view on how you make deposit rates as the Fed cuts -- and I guess, first and foremost is your assumption in your targets based on, I guess, how many Fed cuts are based on that? And then just maybe just talk about how you might reduce direct deposit rates in sweep and the banking deposits as the Fed cuts -- essentially the deposit beta to that? Peter Crawford: Sure. So, thanks, Brian. So, the scenario that I outlined is based off the Fed cutting rates a single time in the rest of this year in September. In terms of deposit betas, I wouldn't necessarily assume that deposit betas are symmetrical. If you look historically, deposit betas tend to be a bit higher on the -- in the easing cycle than they are in a tightening cycle. And so, while we certainly haven't made any decisions exactly about what we'll do with deposit rates, I think that's a reasonable expectation. And we also would expect that as rates come down, the cost of any replacement supplemental funding that we have to access comes down as well. And we'd also expect that, on the margin, that rate cuts would, over time, bring about higher levels of clients' transactional cash as the incentive for them to utilize alternative solutions like purchase money funds and CDs become somewhat less. Operator: Next, we'll go to the line of Ken Worthington from JPMorgan. Please go ahead. Ken Worthington: In terms of the use of third-party banks like TD, how much of your bank assets might migrate to third-party banks over time at sort of steady state? And how would you expect the economics to compare to the fees that you currently earn on a money market fund or in the Schwab Bank spread over rate cycle? A”