So, I hope that is helpful in terms of giving it a little bit of color in terms of the process we went through, our risk tolerance, and what we expect to see from those vintages.
Bill Carcache: Yes, that’s helpful. Thanks, John. And appreciate that. If I could ask a follow-up of John Owen, could you speak to the possibility of potentially, I guess, your overall interest level in potentially pursuing strategic alternatives for any of the other businesses, whether that be student lending or anything else? Or is that more likely to wait — are you more likely to hold off until the new CEO kind of comes on board, which you mentioned, is probably in the next several months?
John Owen: Yeah. Happy to talk about that. As you know, we really can’t speculate or talk about rumors or selling parts of the business. What I can tell you is part of our strategic planning process that we do every year is to evaluate all of our businesses for returns and fit from a strategic standpoint. We do that as an annual process. We are going through that process as we speak. But again, that’s something we do as part of our annual planning process.
Bill Carcache: Thank you for taking my questions. Appreciate it.
Operator: Thank you. Our next question will come from Ryan Nash with Goldman Sachs. Your line is open.
Ryan Nash: Hey, good morning, guys.
John Greene: Good morning, Ryan.
Ryan Nash: So, John, you reiterated the expense guidance for ’23, which is obviously a positive, and I’m sure you’re going through the budgeting process right now. But I guess based on what you know today regarding the consent order, the work that John Owen that you referenced that you’re doing, you’ve made substantial progress plus overall inflation, any sense for what expense growth is going to look like into 2024? Maybe just talk about some of the moving pieces that you expect to drive the expense base next year?
John Greene: Sure. I’m not going to be real specific on ’24. We’re still in the process of building out the budget and we’re yet to share our recommendation with the Board. But I can give you a general kind of direction of what we’re seeing. So, the first point I think is important to point out there is that, we continue to target our efficiency ratio to be below 40%. Now, that’s over the medium-term. Obviously, our execution this year with the revenue growth and even with substantial investments in compliance and in other areas of the business shows an efficiency ratio significantly below 40%. But over the mid-term, that’s something I think investors can expect. The second piece that’s important is that despite a significant amount of investment in risk and compliance resources, we will continue to be disciplined in our allocation of expense dollars.
And we’re focused on making sure that the expense dollars that we do spend either help us with our compliance and risk management programs overall or generate positive earnings potential for the firm. So, they’re the focal point. In terms of some of the things where we continue to look at, we’re looking at our facilities footprint. We expect to be able to continue to make some progress on that. Our third-party spend, we’re scrutinizing significantly with the help of our procurement and vendor management teams. And we’re going to continue to look at resource levels to make sure they’re appropriate for the environment and what we’re trying to execute on. So, I hope that provides some context, Ryan, on how we’re thinking about the expense base in the aggregate.
And that will translate into what we hope is a reasonably good set of expense and efficiency numbers into the future.
