Mike Mayo: Yes, the follow-up is more specific. I mean, look, you said it’s a disappointing quarter. Your returns are well below where you want them to be, and variable revenues and variable costs, not so much your efficiency ratios go the other direction. So I mean, I think investors would appreciate some detail on some of the benefits of what you might get on the expense side, okay, you’re scaling back consumer as I asked you last quarter, you said you were losing money so maybe you lose less money. The headcount reduction should allow you to save money. So can you ballpark the benefits to expenses from the moves in consumer and the headcount reductions? And along those lines now that you’ve moved capital well above the regulatory and your own firm’s target buyback so cost and buyback kind of what to think about for 2023?
Denis Coleman: Sure, Mike, let me take that. So unpacking a couple components. So we exercised a headcount reduction earlier this year, approximately 3,200 employees left the firm. The run rate expense associated with that group was approximately $475 million, and we expect the benefit in 2023 north of $200 million associated with that. Beyond that, we have a series of non-compensation expense initiatives. We’re setting out guardrails for our business leaders to drive more efficient levels of non-compensation spend. The narrowing of the focus in consumer is important. There are a number of ways in which we could have chosen to expand the offering and capabilities of that. The focus is now narrow. And then finally, as you identify, we have more flexibility with respect to capital deployment, which we intend to take advantage of.
Operator: Thank you. We will take our next question from Brennan Hawken with UBS.
Brennan Hawken: Good morning. Thanks for taking my questions. I just wanted to follow-up on some of those questions for Mike. And just really be honest kind of surprised to not hear that there were restructuring and severance charges in the fourth quarter, just given how elevated the expenses were. So I guess, can you provide a little bit of color on the inflexibility, revenues down 20% for the full year. And I understand that, of course, markets are competitive, but the positioning of comp in 2021 was €“ it was a remarkable year. Some of it even identified or segregated as special and therefore, shouldn’t be expected to repeat. So the €“ was the discipline fully there? Are you doing enough on comp? You have reiterated the focus on efficiency, but the results here in €“ I get it, nobody is buying Goldman today for 2022 results, but still the results seem to set up sort of a challenging entry point for the beginning of the year.
Denis Coleman: So Brennan, a couple of questions. As for the reasons to take severance expense in 2023, that’s the accounting rules with respect to timing of our communication to those employees. So that’s what explains the time frame in which the expenses going to be booked. As it relates to compensation expense, variable expense flexibility in the fourth quarter, I guess I would point out a couple of things. One, the overall comp and benefit expense were down 15%. We had grown headcount by 10% additionally. And when you €“ that’s over $2.5 billion of less compensation and benefit expense, so it’s a meaningful number. And if you look at the components of our employee base, we have a very large number of people that earn relatively less money are impacted by inflation and are really important to the overall operation and delivery of our firm on behalf of our clients.
And we have relatively fewer employees that are higher earning employees face clients and generate revenue, and we were able to reduce the compensation substantially there in line with the performance. But ultimately, it’s a balance. And we have excellent people. We depend on them to deliver for clients. The market for talent remains really robust, and we had to strike the right balance between taking down that variable expense in respect of our performance while maintaining the franchise to make sure that we’re in the position that we can deliver for clients and shareholders in 2023 and beyond. Certainly, we can have brighter opportunity sets on the forward and we want to make sure that we are positioned to capture that.
Brennan Hawken: Okay. Alright. Thanks for that color, Denis. I appreciate that. This one might end up being moved, but I just don’t want to confirm it. I have spend some time yesterday looking at previous disclosures of J-curve expectation and whatnot, but it seems as though exiting Marcus and the tone down. Should we not even be thinking about a J-curve for the consumer business? Is that not a consideration here any longer because it does seem as though the cross through from the breakeven even ex-provision has been a lot longer than expected. So, should we just forget about that chart given the pivot, or does that still remain part of the consideration?
Denis Coleman: So, a couple of things I would point out. As people would have seen in the earnings release this morning, the Platform Solutions segment on a quarter-over-quarter basis actually had reduced operating expenses. So, we remain really focused on continuing to drive at the expense of these platforms in aggregate, and we expect to drive a lot of benefit at scale. But as we have discussed and you will observe, we also continue to build our provisions as we scale some of those activities. And so our focus remains singularly on driving towards profitability of this segment, but there will continue to be a period of time during which we lose money until we reach that point of ultimate profitability. And we do look forward to trying to help people understand and map out that progression across the various businesses within that segment at Investor Day.
Operator: Thank you. And we will take our next question from Devin Ryan with JMP Securities.
Devin Ryan: Great. Good morning David and Denis and happy birthday, David.
David Solomon: Thank you.
