Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question comes from Brian Foran - Goldman Sachs.
Brian Foran - Goldman Sachs
I think the expense flexibility was surprisingly good in the quarter I think for a lot of people. As we look out into the rest of the year is there more expense flexibility if revenues continue to decline or are we bumping up against a level where you reach as low as you can go?
Daniel T. Henry
So as I indicated I think that we recognize that the environment is going to continue to be difficult. We’re going to work very hard to execute against the reengineering that we put in place in the fourth quarter of last year so that we get the full benefit as we go through this year. But as I indicated we actually are going to have another round of reengineering, have additional actions including additional reductions in staff. So we do think there’s additional flexibility in our business model and we will utilize those levers. We look at some of the other line items like rewards, you know that’s going to be driven by where our spending levels are and it’s just another one of the aspects of the flexibility of our business model. So yes we have the ability to continue to utilize discretionary decisions and continue to demonstrate that our business model is flexible.
Brian Foran - Goldman Sachs
And then as a follow up, there’s a lot obviously going on in Washington. There was just recently a meeting obviously. Is there any update you can give us in terms of legislative and regulatory risks where those might be increasing or decreasing?
Daniel T. Henry
So I don’t have an update of the events that took place today. We had a representative at the meeting at the White House. We certainly take very seriously the concerns that are expressed about the industry and we look to work constructively with the administration and Congress toward a productive solution. And while we’re mindful of the calls for reform, we think it’s important that we look at all things and strike the right balance between consumer protection and the availability of credit to the general population.
Operator
Your next question comes from Robert Napoli - Piper Jaffray.
Robert Napoli - Piper Jaffray
On the expense savings just would like maybe a little bit more color as we move to the other side of this recession eventually. Of the cuts that you’ve been able to make and the reengineering, how much of that is sticky? So are we going to see significant operating leverage on the other side of this, beyond what we have seen historically? And what do you lose? I mean, these are substantial expense cuts that you had laid out pretty clearly going into this year, but what are you cutting into the muscle at all? And how are you – maybe give me some color on that.
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