A unique Global Network to service and concessional clients with an emphasis on strong execution in the highest ethical standard. Mr. Corbin has been at the city in a Predecessor Company since his bachelors degree in economics. Prior to the current role he has held a variety of ceo positions including ceo of europe and head of the Global Corporate and global commercial bank. He is reported with civil organizations including his rolls in executive Committee Member of the partnership for new york cy and is a board of trustee for the United States and snowboard association. Dusting, id like to introduce dustin who will be moderating, our moderator is in an Award Winning cedar roo senior reportr and many of us see his articles on a regular basis. During the tenure he is over the automotive collapse in the bankruptcies and multibilliondollar mergers and acquisition deals. Things that many of us become very familiar with over the years. He served as an expert source to national and local television and radio programs. Dustin has also won several awards including the alliance of publication best local coverage of a National Economic award versus coverage of and sourcing manufacturing in 2012. He attended grand Valley State University and studied journalism. Ladies and gentlemen, i would like to bring mike up to the stage and welcome dustin for when he is going to do the question and answer. I come up and we will hear remarks. Thank you. [applause] thank you betsy for the very warm welcome. I would like to think steve in the leadership and the membership of the Detroit Economic Club for this opportunity to speak to an influential group. When business and government leaders founded this form during the depression, our nation faced tension and challenges that were exacerbated by both a social, political environment. I think the same in many ways could be said of her country today. Americans have lived through the financial crisis while the government response in my opinion was the right one. The crisis has left many feeling as if the system is stacked against them and solved wrongdoers of accountability. Too many people in our country defining Economic Trends including things like globalization have hurt them economically and while we have historically low and a payment, wage growth has been stubborn in the with anxiety of having the jobs disrupted by technology. The wealth gap is widened too many believe their crel ha fewer opportunities in many inner country have lost faith in the american dream. I think that has caused some to question whether our capitalist system is in fact the right one. For my part, i believe in capitalism. I believe in markets in the right of enterprise to conduct business and i believe in responsible and reasonable regulation. We would not be the country we are today without these. But i also believe for our business to strive and thrive in todays society, we need to help solve the societal challenges that we all face. We cannot the on the sidelines. We need to have Business Models thatave a positive impact on society and dont rely solely on philanthropy to show that we are solid corporate citizens. Creating shareholder value in my opinion will always be necessary in creating stakeholder value is critical. Today, these two goals are more closely connected than ever before. People increasingly are demanding more from that private enterprise play a role in finding solutions to the challenges that we face. Employees for their part want working companies that reflect their own values and priorities. Our approach to some of these issues is that at our core and at our best we work with our clients to solve problems. With significant Financial Resources to deploy we are scaled toer o clients and help them compete in todays economy, the client could be anything from a Multinational Company like ford where had the pleasure and privilege of spending time this morning or one of our commercial Banking Client like edward leavy or a Road Construction founded on a handshake of the namesake and henry ford or a Public Sector client including local governments like the state of michigan. Our commitment to solution can be seen through three decisions that we make everyday. Who we work with, how we work with them, and how we treat the people who work for us. Think about one of the Biggest Challenges facing our nation today, thats our failing infrastructure. The American Society and Civil Engineers estimates will fall 1. 5 trillion short of the required Infrastructure Investment needed by 2025. Not only their implications for Public Health and safety, there is an Economic Cost to the status quo. The estimated annual cost of highway congestion, 120 billion. Airport congestion and delays, another 35 billion. That is where a bank like ours can help. The Balance Sheet allows us to finance projects that would be out of the reach of smaller institutions. Just last year the city provided financing for 26 billion in u. S. Infrastructure projects including bridges, hospitals, airports, water and public power. I would like to mention one project which we did in detroit which we are particular product. That was during the bankruptcy the city had 60 million from the own Balance Sheet and another 200 million in bonds on behalf of the Public Lighting Authority of detroit. Those funds finance insulation of over 65000 efficient streetlights improving the quality of life throughout the city. [applause] another challenge, Affordable Housing. I mentioned the economic pressure to Many Americans feel acutely. Over 11 million lowincome households in the u. S. Today comprise over a quarter of all rental households. Of those, 70 spent more than half of their income on rent and utilities. To address the urgent need city provided 6 billion in financing for the construction and reconstruction of more than 36000 Affordable Housing units. That level of support not only set a new record but it maintain our ranking as a leading financer of Affordable Housing in the u. S. For the ninth year in a row. How about Climate Change . Some may doubt its existence, we believe it is real and accelerating. And that our collective efforts to address it are the greatest combination of opportunity and risk that we face. According to some of the most recent and compelling scientific assessments, we cannot afford to wait to take action. Serious impact from client change go well beyond extreme weather events like the devastating hurricane that we have experiencing in the past few years and at the same time, we need to recognize that many people depend on the fossil fuel industry for their livelihood. We have clients in the sector and we are not going to walk away from it. Instead we are working with many of them to suprt the transition to a low Carbon Economy creating green color careers in the process. In 2014, we made a ten year 100 billiondollar Environmental Finance commitment Funding Clean Energy and other sustainable offshore win wind farm in the country. There is great demand for this capital and as a result we will meet our goal this year which will be four years ahead of our plans. Let me be clear, none of these projects or transactions ive described up to this point are primarily rooted in or idealistic intent. They are core banking activities conducted on behalf of city clients and yes, they all contributed to our bottom line. However, the value and benefits recruit many stakeholders including our communities, society, u. S. Economy, more broadly the Global Economy. In addition, our core activities as a bank, we also advance our economy and society supporting nonprofit organizations that tackle such challenges head on. We focus on the need to close the whitening gap between the skills of young people and what they need to be able to compete in todays workforce. The u. S. Department of labor released a report last fall that found there are 7 million jobs at any one time today that employers still cannot phil. Our pathways to Progress Initiative is designed to help close the job Skills Mismatch by 200,000 young people over six years with the tools that they need to training, Work Experience and entrepreneurial opportunities. At 100 million, is the largest commitment in our companys history and i hope it shows her willingness to put our profits accurate to the communities that we serve. Earlier this year we broaden the scope to help 10000 Older Workers who feel as if they been on the wrong side of globalization or Digital Innovation to secure employment and Growth Industries like healthcare, transportation, technology and construction. Several organizations in detroit are involved in the 10 million effort. To focus hope is launching a Robotics Program to support people looking to build careers and automation advanced manufacturing, and information technology, fields all helping to grow our economy right here at home. Beyond philanthropy, we also accept we have a responsibility to have a point of view on certain issues affecting our colleagues and our communities. One is the epidemic of gun violence, after several city colleagues were directly impacted by the parkland massacre, we decided we need to think about where our client intersected with this issue. We do not seek to take the place of government and we have never intended to offer the perfect solution. Much less a new form of gun control. I own guns for recreational purpose and i am a Firm Believer of the second amendment. Our commercial firearms policy simply asks the Retail Sector client to use accepted best practices if they sell firearms. Include age restrictions, completed background checks, and no cell above stocks or highcapacity magazines. These sale practices are followed by major retailers including walmart, Dicks Sporting Goods and have strong public support even among many gun owners. We also recognize that how we operate as a company is an opportunity to demonstrate our values. We focus on building a better cultural city making it as free of racial, gender and other biases as we can and this year we were the first u. S. Company to disclose what we call the unadjusted or raw pay gap and analysis revealed in the median pay for women globally is 71 of the median pay for men showing we have a significant issue with the representation of women of senior rolls in our firm. While transparency is great, its what you do with your data were that hits the road. We set a goal to have 30 of the midsenior level globally filled by females with the end of 2021 and we measure our progress against that quarterly. While i focused on the city, im happy to say that these issues are affected by our client and the Business Community more broadly. In august, the Business Roundtable and organization of ceos of major u. S. Companies announced it revised its principles of corporate governance. A revised statement said that responsible business should also take into account the interest of other stakeholders. Such as colleagues, clients, suppliers and communities. As an example i have decided to show its not just a case when a grade this does not nor should ever be. Up until recently, business did not have enough credibility to take on social issues early this year evidence emerged of a new attitude in the public affirm published its annual trust parameter. And the results revealed a profound shift in the degree of trust that people have one class of company and that is their employers. 75 or three out of every four people enter globally trusted their employers to do what is right for them and for society. That is a welcome shift in perception and development that this should take pride in. I believe Companies Continue to see the bullish creating value for stakeholders as well as shareholders, our country will be stronger in her system will continue to show white crates more opportunity than any other anywhere. Ank you for having me here today. I look forward to our discussion. I would like to invite dustin on the stage. [applause] ofthank you. That was delightful. I also dont want to show you that ptosis. Before i want to do a deeper dive into the social topics that you spoke of. First thing, i would like to get your parameter on the economy and where it is going. Usually when the Global Economy or the National Economy stumbles the detroit, were leading this. And we fall down the well. What are you seeing in the economy that is were seen recessionary indicators, what are you thinking the long term this year or next year . I have talked publicly in my 36 years of being in the industry and being around companies in the economy more broadly. Ive never seen a time like this. When you think about where we are today, we are effectively ten years into her recovery from the great financial crisis and so people say by historical standards that is long. True but we have to remind ourselves recoveries have no memory as my friends in australia remind me, 26 years into the recovery, second, as we look at the Economy Today it cannot be looked at through single lens. That is when we look at the world we are the culmination of economic social and political, and also have the tearing of what we think of as the consumer business and government. Too really understand where the u. S. Economy and Global Economy is, we need to take thosert. Very simply when you look at the United States today, two thirds of our economy is dictated by the consumer. By the way, the consumer is in pretty good shape if we go back to the crisis and think about how intervention was done and where stabilization came from, effectively to the consumer two things matter most. Their job, do i have a job, can i keep my dog, if i dont have one can i get one. Secondary offense around wages, et cetera. As we saw last week, we have to go back to 1969 to find a job market with lower unemployment than we have today. In the second piece is housing, when we think about housing, we can argue, people feel pretty good about the house. And certainly for american many consumers around the home their home is the largest investment in a proxy for their retirement and if you fill it a good about your job in her home the consumer will be engaged and thats exactly what we see. This has been a bit flighty. Throughout these ten years business has been engaged, disengaged on the back of tax reform or other things, in and out but business is probably been more conservative and i think the other piece, we are ten years into what i described as an unpresented in massive signs for project called quantitative using. Unprecedented in terms of trillions of dollars around the world and as we look and things that we can escape in the Global Economy is the impact its had on interest rates. If we ever think any of us with gray hair or in this room that we would look around and find several Major Economies in the world with negative interest rate. We operate in those places and its a strange phenomenon where you go to somebody and say give us your deposit and by the way you are going to pay to put your deposit in our bank. It redefined the traditional paradigm of how people think about things. I dont believe and i think weve heard out of our central bank and the Federal Reserve that has not necessarily transmitted as well and for now we are saying we are not a believer in the negative rates but all that has had an impact and you have to look at the other pieces out there around, this morning you wake up, it is china. Its brexit, hus mca and what is going to happen. So the volatility has been destabilizing to business but fortunately we have had the backbone of a healthy, strong engaged consumer. Right, im running short on time. I really want to get into the idea of corporate americas role in solving society. Historically its been the governments role about society and the constituents. And you now see that role as being taken on by corporate america. Does that mean the government is failing us . Or does that mean something has changed . What the fundamental change that you have to do to do the things that you just talked about. I would say as we look at these issues, i talked a bit about guns but if you look at issues that we choose to be involved with. In many ways it goes back and it starts at home. It starts around our employees and the expectation of our employees. Of wanting to come to work for a company that they can be proud of. And most of the stances, significantly most of the stances that we take are very internally focused around ourselves and our clients and we do not go out in public forms to speak about them. But in the word underworld for talent in the world we live in and taking those stances and taking the value of the company is really critical. Sure, that makes sense. But what the has taken on in this day and age where everything is political. Guns are definitely political. How did that conversation you had to go to the board with this i assume or they brought it to you one of the two, how did the conversation go . We are, as a bank highly regulated entities and it was interesting that we went back and looked after some of these events and asked the team, can you come forward and show me are prescribed commercial firearms policy and we actually really did not have one. Which by the way, we have a policy for everything. So one into really look, as i said in my remarks, we did not look to reset boundaries or change things. But how do we act responsibly with our clients around the things that they are doing and how should we use the firm to support those efforts in a positive direction. When you look at what we did, very simply we said age restrictions, maybe training, we know people hand kids keys to the car and say figured out. Around the modifications that generally serve no commercial purpose or no societal purpose and have been at the center of these. So working with our clients to be able to put those things forward is not things that we simply invented and put out, we were in direct consultation with our clients to try to promote best practices. Okay. Was there a lot of pushback . Was it smooth . We did not expect it to be smooth. I would say the response was as predicted and one is that i had people sending emails, all my gosh greatest thing ever done to people with expletives less than thrilled with it. And i would say in general, people found our response thoughtful and balanced and was very viewed as a positive. Obviously you brought up Climate Change and other hot button issues. If you talk to most economists, they seem to overwhelmingly support carbon tax. You publicly said you dont buy into carbon tax. But youve also said government should create other incentives towards sustainability hurried like what . I want say to correct that but put texture to it, its not that i do not believe in carbon tax, i think its been quite effective but i dont think it can be the beall in the end all. What i talked about the combination of curate and stick. You have to have a balance in terms of the way that we approach these things. And how do we get businesses to the table to choreograph or script their own transition towards what their companies of the future will be. In there, we want to be in a role of supporting them, we do not want to have to take on the mantle of actually being prescriptive to them of the things that they can or cannot do. All of these companies, my company included her on a journey and transition, we can as a country and of the world and say no more fossil fuels. We have got to come up with alternative sources, the ways of improving the ways that we use it and that is a journey and requires to help inks to facilitate that shift. What is the carrots, the cooked carrot. A great caret is what is happening today around the reaction of Financial Markets towards those companies that are acting responsibly. If you look at the whole invention and evolution of green bonds, where bonds are being issued, financing is being offered and being offered at better rates than otherwise would better ways be offered to companies that are dedicating those monies towards his transition. If youre going to go down that path we are willing to help you in the journey. You mentioned inequality, wealth, income inequality. Several of the Democratic Candidates are calling for aggressive measures, higher income tax, new corporate taxes et cetera. What role can corporations play in battling inequality within the system . I think one, when you think of our role, its inclusive finance. As a bank we serve a role to society of getting as many people and as part of the formal economy as we can. And how do we educate people and how do we do that, what are the things we can offer them. I talked a bit about in terms of not just investing in her own people but more broadly in the communities that we serve in terms of modernization of jobs, skills and retraining. Not just around or training around the younger but actually retraining some of the existing workforce. Again, i think if we all come together and understand what it is we are trying to shake, we actually have the ability to bend it. You mentioning the job and retraining. If we look up to the state in every state were trying to get most under more post secondary education. But if we look at what the prediction of the Fastest Growing jobs, their all lowincome jobs. 61 of the jobs created in michigan with the recession paid 20 an hour or less. So how do we find the right balance with the lowincome jobs, education and the future of work . Underline, im sure your numbers are right but we have to go up a level and when we think about the United States today, somewhere between 80 82 of our economy is service base. Manufacturing 16 or 17 in agriculture and low single digits. As you described the job evolution or what has happened wherwe are either recycling peoe out of manufacturing jobs into service jobs or bringing new entrants into service jobs and that the Fastest Growing part of our economy. As part of that people are coming in not necessarily skilled in some of the services or businesses and are coming in getting those skills and we would hope that they would have the upward trajectory as they get the required skills to continue to move up. When we think about our Economy Today, by the way when you think ou t Global Economy today, 80 services in the United States and two thirds in the world so this is not a transition that we are facing alone. Im kind of wrapping up, i have one minute. Obviously under the Current Administration we have seen a lot of uncertainty. Tariffs, trade deals that have not been locked up, its a new thing every single day that were not sure what the future holds. How do you balance customers that are trying to expand and how do you help them bring uncertainty to the disposition . One, we have tried to take, as a company that is been around for 207 years, as they say this is not our first rodeo as a company that operates in many places around the world, we have seen these things before and i think we bring a time perspective and a breath of perspective back here around dealing with these issues and again, we tried to take the intermediate and longerterm view, i just talked about if we sat and watched the volatility of the market you would drive yourself crazy. But how do we look at the things that are important and make the right investments and do the right things to support our clients and give them the ability to make the decision over the proper term rather than acting in todays headline and tried to provide the support, insight, financing the capital that gives them the ability to do that. They can. Betsy is coming back up for the q a portion. [applause] we will spend a little time if i can get this working right going to the questions from the group and maybe we can follow on the last topic you are talking about, the trade wars. One of the questions, what impact to trade wars have an actual Banking Industry and you talked a lot about your customers perhaps you could switch that and talk about how the impact baking and city specifically. The book in many ways is the Second Derivative or the second function and that is, as bankers, our business is a function of our clients need, desire success challenges. Clearly what has happened around trade, around tariffs we have seen uncertainty putting in reaction from our clients of the rerouting and as an example the u. S. Was a massive exporter to china and tears were in place that stopped, we instantly saw the trade route reroute such as argentina and Brazil Building to become the exporters to china. We have seen supply chain diversification. Our ability to move with our clients and to be able to support them as they are dealing in real time with some of the changes is critical. Clearly from a first function, it is impacting the market in impacting foreignexchange in impacting many things that we have to deal with on a daytoday basis. It is much more the second function of event we are focused on. You mentioned in your remarks brings it. One of the questions surrounded that, the question is, what impact would hard brexit have on city and other Banking Institutions in the u. S. . I had a highlevel official from the uk government and i said to him and his team with all due respect, whatever it is just get on with it. We have been living this for long period of time and we all believe were as about as well prepared as we can. In the uncertainty from a business perspective is the biggest challenge. So i think that we have to see, we do not know exactly what the ramifications will be. We dont know how the border issue will get solved and we dont know how trade agreements will be structured but as we look at the uk, certainly our presence is an important place and will stay in an important place and we will need to be forced to deal with wherever they come out on the issue and from a business perspective as we all know as business people, give us certainty and the ability to plan and we will process and move on. Great. There are several questions about crypto currency, what is your general thoughts about crypto currency, how does it affect your business, your international business, maybe talk about crypto and your thoughts around that. When we talk about crypto currency in some ways i wanto create a segmentation. Often times we talk about crypto currency we get in some ways either a very dark view of a speculative vehicle, my belief, not necessarily in many cases of currency that somewhere between tax and leaders and other bad activities behind to actually to the activities which i think every legitimate. I think where we have had some challenges is that some of the crypto currencies have been introduced are not necessarily currencies. They are speculative vehicles and not necessarily commercially usable in any kind of regular sense but its only a matter of time until we get the Digital Currency. The Digital Currency as coming as a replacement of Paper Currency or a supplement to Paper Currency today is likely not in the future but we will see governments beginning to issue that an obviously we have seen the announcement by facebook and libra in their approach towards what they call a stable value currency, basket of currency behind it which has a broader use. Involving realtime and like anything, i dont think we should be dismissive of it, i think there will be an evolution to it and there will be choices around it. Thank you. You talked about sustainability and citys responsibility and your view on that. What are the questions put forth if city will consider only do business with Companies Committed to the pierce climate agreement. And how do you think about the overall environment that we live in today and citys responsibility around that . The answer is simply no. There is climate agreement, were a subscriber and a believer but we have to take a broader approach than that. We cover businesses of all shapes and sizes that do all types of things and some may have impact or direct ramifications in terms of what pierces but theres much more to it around creating responsible, sustainable paths to the future of our business and we are here and what we want and i think my fellow bankers would sympathize or agree, we dont want to be in the position of setting or enforcing your policy, we really want to be in the position of you working with your stakeholders to create the right path forward for your company that has by around in our responsibility to support you on that journey. We dont want to be the traffic cop or the rational or the person rationing valuable resources but we actually want to be the encouragement and the support of whatever that transition that is bought into that feels like. Changing direction a little bit. How do you deal with legal uncertainty of cannabis banking. That is something that a lot of people in michigan are talking about. I have not written down. [laughter] as a nationally chartered federally insured bank, this decision is easy. We are prohibited by law. If we were to be part of that in the United States, we would be breaking our charter breaking the law, lose our fdic insurance and lose our license. That would be a bad day. So what we are pushing for like many things, rather than this being governed at the state level, the National Politicians need to take the topic on and i think they need to come to a decision from a federal perspective of how they should be approached and once that is decided we are more than happy to support that. There is one question that came in, im sure its from a student. And i think your insight would be hopeful, you talked a little bit about with the student group, how can we make ourselves better problem problem solvers,e suggestions or thoughts that help to undergraduate and from college and moved on things that make a difference to an employer and maybe advice around that. Is the same advice as i said earlier to the group, my wife and i have a 30yearold and a 26yearold, its the same advice i give them and our people joining our Company Every year. Keep your base wide. Were in this world that is changing so rapidly and too often i sit down with really energetic excited young people and they have a narrow view of where they want to go and what they want to become. I would take advantage of everything out there to build my foundation today as broad as i can build it to give me all the flexibility through life. When i think back 36 years ago around what banking was in the hot sectors were and what they werent. If i had focused myself or pinhole myself into those things i would likely probably had to have gone backwards in my career to reach myself. And as time goes on the only becomes more painful, more costly, more difficult. So invest in yourself today, build the widest space you can build, continue to take advantage of that and naturally, your career path will narrow its self and allow that to happen naturally rather than forcing it. One last question before we go into the lightning round. There is a couple of questions around regulation and whether you feel that the Banking Industry regulation today is of the appropriate level and inflates that would limit the ability for 2018 to occur again. I do feel were somewhere in the zone and what i mean by that, we have talked about what i talked about publicly, we are not asking at all as the bankers or the industry for dodd frank to go away but what we would really love his harmonization of regulation weve had a lot of regulation and up industry put forward between the years of 2008 and 2012. Many of those regulations sit at multiple regulators and some of those regulators dont actually agree on what those regulations say and how they should be implemented. In our case, dont care, pick any version but please pick one and were happy to live by it its really difficult when we have multiple regulators all taking different approaches in all expecting us to be compliant with the different views of the regulation. In particular 22008, when you look at capital in the industry, liquidity, the oversight, i think its a completely different industry today than it was around stress testing and all the things that we do on a very regular basis, i think the numbers show that the industry would have the ability to withstand a 2008 and beyond. Great. As a tradition with these meetings we would like to have a lightning round, these are quick questions and one short answer however, you decide to enter is great. Something on your bucket list . Something on my bucket list would be teleskiing in the himalayans. [laughter] outdoorsman, i can tell, he was talking about fishing. Person other than a Family Member you would like to have lunch with. David mccullough. One of your favorite song. Happy birthday. [laughter] as long as youre standing up that is great. Favorite team growing up . Pittsburgh steelers. Your best port an sport . Best or favorite . Them either. I played football in college, fly fishing . Absolutely. Last book you read . This past weekend i read a book called the roadside scholar. One of your favorite movies . Shawshank redemption. Favorite vacation spot . Italy. Describe detroit in one word . Transformational. Last one. Advice to your 25yearold self . I gave a little so i wont repeat, but i would also say take advantage of the world one piece of advice that i learned and i give my kids and anybody who will listen, as you grow up, your life will never be less complicated than today, take advantage of that. Thank you very much. [applause] the house will be in order. For 40 years cspan has provided america unfiltered coverage of congress, the white house, the Supreme Court in Public Policy event from washington, d. C. And around the country. So you can make up your own mind. Crated by cable and 1979. Cspan is brought to you by your local cable or satellite provider. Cspan, your unfiltered view of government. Randall the assistant defense secretary for agent and specific security affairs
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