Citigroup at Morgan Stanley Conference Notes

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John Gerspach CFO

Slow trading environment

“I guess I will call it a slower trading environment, we would expect revenues in our fixed income and equity markets to be down year-over-year in the, I guess I’d call it the low double-digit range maybe 12% to 13%. Yes. And so that would mean that we were down 12% to 13% this year. Of course, that also means we would be down sequentially and maybe just a little bit more than we otherwise would have anticipated given the environment. I’d also say though at the top of the house for the overall firm, expenses should also be down sequentially, probably not enough to completely offset the seasonality in revenues. So, you might see our efficiency ratio pop up to 59% this quarter. But again, it should decline in the second half of the year and then we are still very, very comfortable with our target of 58% for the full year.”

I don’t think the Fed is really going to impact our LCR

“I don’t think the Fed shrinking the balance sheet is really going to impact our LCR. When we look at the constraining factors on LCR right now, it’s really more driven by resolution requirements as we need to preposition liquidity throughout the firm in order to make sure that we have got a very good resolution plan”