“We are thinking here 1 or 2-quarter changes. So that's why I say it's not that material to our strategy or our timing. But it can move by 1 or 2 quarters in terms of how quickly we step up.”

In context

“of what Gunjan is saying with regards to optimizing the payout. Does the timing of the clarification impact sort of the path to optimization? Or does that really have to do with sort of the RWA demands from stronger loan growth, in terms of timing of capital payout optimization? Gunjan Kedia: Erika, I would say that we believe the regulators' intent is to allow all banks 5-year phase-in on AOCI to take the cliff effects away. But we are waiting for that clarification. A very good outcome from a capital distribution side for us will be, let's say, a very prompt date to have the current proposals of Basel III be effective and for us to get a 5-year phase-in period, in which case we'll be well ahead of our capital needs even as a Cat II, and we would bring forward the capital distributions. We are thinking here 1 or 2-quarter changes. So that's why I say it's not that material to our strategy or our timing. But it can move by 1 or 2 quarters in terms of how quickly we step up. Operator: Our next question comes from the line of Ken Usdin with Autonomous Research. Kenneth Usdin: Just one question on the expense side. You did a great job holding the line as you had expected to on year-over-year growth in first. And we can see in the second quarter guide that it's, as expected, moving higher. Just wondering, first to second quarter costs last year were actually down. So understanding the year-over-year growth goes up a little bit. But kind of tied to the prior points about operating leverage and magnitude, if we get back into this 3% to 4% growth, is that how we kind of think about it as we just move forward on a regular basis, that the investment that you're making kind of and revenue-related leads you to a decently higher expense growth rate than what we had seen”