Introduction -

The financial services industry is poised to receive some regulatory relief from an unlikely source: President-elect Donald J. Trump. On the campaign trail, Trump often sounded like a populist crusader bent on reinstating the Glass-Steagall Act and breaking up banks deemed “too big to fail.” However, now as he transitions to the presidency, Trump appears to be gearing up to potentially deregulate the financial services industry. Below is analysis on the possible impact of Trump’s presidency on financial policy and personnel. It comprises four sections: The Future of Dodd-Frank, the Future of Financial Rulemakings, the Leadership of Monetary and Financial Agencies, and Changes to Congressional Committees of Jurisdiction.

The Future of Dodd-Frank -

Trump has vowed to repeal the Dodd–Frank Wall Street Reform and Consumer Protection Act. To try to achieve his pledge, he has a ready-made vehicle in the Financial CHOICE Act, a bill from last Congress that likely will be reintroduced this Congress. Sponsored by Representative Jeb Hensarling (R-TX), the Chairman of the House Financial Services Committee, the bill would repeal most of Dodd-Frank. It would repeal the law’s indirect auto lending guidance, the “Volcker Rule” banning certain proprietary investments by banks, and the “Durbin Amendment,” which limits the fees retailers pay to process debit-card transactions. The bill also would strip the Consumer Financial Protection Bureau (CFPB) of its authority to ban arbitration and the Financial Stability Oversight Council (FSOC) of its power to designate firms as “systematically important financial institutions” (SIFIs). In addition, it would entrust Congress with funding the CFPB and restructure the Bureau’s leadership, replacing its one director with a fivemember commission.