We have the re-launch of cash back debit. So in terms of the business model, and the returns we can give to our owners, in my 25 years at Discover, I’ve never been more excited. To get to all of that though, we need to get to where you need to be on the compliance standpoint. That’s a critical part of operating a bank, a financial services organization. We are not where we need to be and we are going to get there.
Bob Napoli: Thank you. And a follow-up, just on compliance, having followed Discover for a very long time, coming out of the great financial crisis, there was a lot big investment in compliance across the industry including — at Discover. Has it become more difficult? I mean, I know there’s been a number — quite a few consent orders put out by regulators, but has it become — maybe give us some color on what you’re investing in compliance today. I don’t know, if it’s people or percentage of expenses versus historically, and how has it become a lot more difficult?
Roger Hochschild: Yeah. It certainly is a challenging environment, but I’m not going to blame that, right? As I look back, I do believe we under invested and that’s something I take accountability for, but we are very focused on it now. And as John, I think, highlighted, that investment takes many forms. Right? From bringing in some highly talented folks within the compliance area, building out our monitoring and controls, investments on the technology side to standardize, simplify, automate manual processes, as you think about it, compliance, a lot of the folks, it’s risk management, right? And traditionally, we’ve been very strong around credit risk management, around liquidity risk management, but have not necessarily made the investments we needed, especially as the complexity of our business increased. As we got into more new products, I think there was a gap there in terms of our capabilities and that’s what we’re focused on now.
Bob Napoli: Thank you.
Operator: Thank you. We’ll take our next question from Arren Cyganovich with Citi.
Arren Cyganovich: Thanks. On the net charge-off peak that you highlighted for — into second half of ‘24 and possibly into ’25, is that an expectation that it would go north of kind of your normal underwriting charge-off rate?
John Greene: Thanks, Arren. No, I mean, we gave charge-off range. Now there’s a numerator and denominator impact on that calculation, of course. But our underwriting is focused on prime revolver. Prime revolver behavior in our targeted segments looks very, very consistent to where it’s been historically. And our return expectations remain high and we’ve been able to deliver on that. So in terms of is it going to be north and where it was historically, we have seasoning of those new vintages. But our credit box has been relatively consistent, our analytics to kind of target customers and understand kind of risk factors, I feel like has improved over the four years I’ve been here and certainly a longer journey than that. So the trajectory to me looks very, very comfortable in terms of continuing to be able to deliver high returns and generate capital.
Arren Cyganovich: Okay. Thanks. And then just to clarify on the expense commentary, it sounds like you’re not planning to pull back on marketing opportunities as your compliance costs are rising. And then if you could just clarify the numbers that you gave earlier, are those annual numbers? I think you said like $50 million up to $250 million and then $350 million and then down to $200 million. I’m just a little confused on the — on the trajectories there.
John Greene: Trajectory of the compliance management cost? Was that your question, Arren…
Arren Cyganovich: Yeah.
