And so that’s the level of detail that we’ve used look at to come up with what we think the appropriate level of reserving is. And I think we’ve tried to be as diligent as we can in stressing the scenarios that we see play itself out. So that when we look at ourselves and we understand what CECL reserving requires us to do, that’s what we’re trying to accomplish.
Betsy Graseck: So would you — and, I think we all know, like, for the most part commercial real estate loans are bullets, right, where the stress comes at the role. And I guess I’m wondering, is this reserve ad reflecting the entirety of the CRE book for that entirety of role rate risk or is this like a two-year forward? And part of the reason for asking the question is trying to understand if there’s — if how much risk there is for further increases in CRE related reserve builds?
Charlie Scharf: Yeah, Mike, I’ll start and then either chime in or give your opinion. We have tried to take into account all of the risks including refinance risk that exists in the portfolios looking at the current rate environment, cap rate expectations and things like that. Is it possible that we have to add something in the future because we learn more as time goes on? We would never say no. But again, what we’re trying to do is be holistic in the review of the portfolio based upon everything that we know. And just as you can imagine, when we sit in the room with the people that run the real estate business and all the risk people, there’s a range of opinion. There are people in there that say, we just — it’s hard to see losing this amount of money based upon what that individual thinks all of the underlying assumptions will play themselves out as.
And then there are others where we say we actually want to stress the scenario because it is possible and we have to give weighting to that. And so that’s how we come up with what this is. But again, we’re trying to, again, I don’t know, just — we’re trying to be forward-looking, we’re trying to be holistic in all the risks that exist. And part of the reason to show you those — that additional disclosure we made is so you can see exactly where the issues are relative to the rest of the office portfolio and the rest of CRE and isolate just the level of reserving that exists, which is, at this point is substantial.
Betsy Graseck: Got it. I understand. Thank you.
Operator: Thank you. The next question will come from Gerard Cassidy of RBC Capital Markets. Your line is open.
Gerard Cassidy: Thank you. Good morning, guys. Mike, can you share with us, you touched on this a little bit in response to one of the earlier questions, but when you guys are looking at your balance sheet and you’re measuring your treasury functions on your assets and liabilities, can you share with us what you’re thinking for the second half of the year or into next year in terms of how you’re managing that? And how that may be different than what — how you positioned the balance sheet a year ago?
Mike Santomassimo: Yeah, George. Sure. It’s not that different, right? On the margin, you may be making decisions to add a little duration here or there, but I’d say it’s marginal at this point and we really haven’t changed substantially how the balance sheet is positioned.
Gerard Cassidy: Very good. And then just to follow-up, I know you guys have given some good details here on working through the commercial real estate portfolio. And Mike, I think you said in your prepared remarks, in some cases, you’ve been able to get additional payments or equity investments from your borrowers to cure, maybe, a potential problem. Can you share with us some of the other workout solutions you’re using so you can get through this period of adjustment that we’re seeing in commercial real estate?
