“As previously mentioned, we are not planning to reduce bank wholesale funding levels to 0. However, as we move into the back half of the year, we expect to make additional progress each quarter until these higher-cost bank liabilities are in a range more consistent with our long-term diversified funding profile.”

In context

“of the securities portfolio as well as excess cash on hand to further reduce high-cost funding at the banks. Looking ahead, we believe trends will continue to reflect normal client activity, and we plan to keep a close eye in a range of macro factors as shift in market sentiment tend to influence client cash allocations. As I've noted previously, we are focused on maintaining flexibility in managing the balance sheet in a manner that keeps us well positioned to navigate a wide range of potential environments. Turning to high-cost bank funding. Following the nearly $12 billion paydown during the first quarter, we reduced the balances by another $10 billion during the second quarter of '25, bringing the outstanding balance as of June 30 to $27.7 billion or down more than 70% from the peak. As previously mentioned, we are not planning to reduce bank wholesale funding levels to 0. However, as we move into the back half of the year, we expect to make additional progress each quarter until these higher-cost bank liabilities are in a range more consistent with our long-term diversified funding profile. Our capital levels finished the quarter slightly above the up or down of the firm's adjusted Tier 1 leverage objective of 6.75% to 7%. The quarter-over-quarter build was primarily driven by earnings and continued pull of par of unrealized marks. The ratio also reflects the $5.3 billion in total capital return through the first 6 months including an increased common dividend, the redemption of $2.5 billion Series G preferred stock and the resumption of open market common stock repurchases in June where we repurchased approximately $350 million worth of stock, bringing the year-to-date buyback total to $1.85 billion, including the $1.5 billion we repurchased back in February. Looking ahead, we will continue to prioritize maintaining capital to support the needs of our clients and the growth”