“So, we're bound, Ken, by the current rule set, which is after four quarters of an average of $700 billion then you would go to Category II, or the new Basel III rule set, which is yet to be finalized, as you said. But the current rule set is what we're bound on. So $700 million still is important, but what we're seeing is given where we think asset growth will be, given our continued optimization in certain categories, given our focus on high-return businesses, we do not see that as a hurdle to growth.”

In context

“less relevant now given the Fed's decision, but still something we're all tracking. Andy Cecere: Thanks, Matt. John Stern: Thanks, Matt. Operator: And next, we can go to Ken Usdin with Jefferies. Please go ahead. Ken Usdin: So just one more follow-up on the Category II news, I just want to make sure we're super clear. So this $700 billion stop being a bind forever? Or obviously, you don't have to cross on the prior potential timeframe. But to the prior question, just wondering, you said there's -- you don't have an asset cap. So does that mean that Category II is now a non-thing for U.S. Bank going forward in any time period? Or when you cross naturally, do you still get on the natural clock of having to comply? Just wondering how that fits in with the news you got yesterday. Andy Cecere: So, we're bound, Ken, by the current rule set, which is after four quarters of an average of $700 billion then you would go to Category II, or the new Basel III rule set, which is yet to be finalized, as you said. But the current rule set is what we're bound on. So $700 million still is important, but what we're seeing is given where we think asset growth will be, given our continued optimization in certain categories, given our focus on high-return businesses, we do not see that as a hurdle to growth. Ken Usdin: Understood. Okay. That's what I wanted to clarify. Andy Cecere: You bet. Operator: And with no further questions, I'll hand the call back over to George Andersen. George Andersen: Thanks Brad. Thank you, everyone, for listening to our earnings call. Please contact the Investor Relations department, if you have any follow-up questions. Operator: This does conclude the conference for today. Thank you for participating. You may now disconnect.”