ABA’s government relations team has prepared an analysis of how Donald Trump’s presidential win and the continuing Republican majorities in Congress will affect the banking industry. The analysis reviews the likely impact on such key issues as Dodd-Frank regulatory fixes, the Consumer Financial Protection Bureau, overall regulatory burden and GSE reform.
“Comprehensive regulatory relief…failed to gain passage despite Republican majorities in the past Congress, but will likely be revived early in the legislative session,” the analysis said. “The looming court case around the constitutionality of the CFPB and an adequate majority will now give Republican leaders the confidence to move forward on restructuring the bureau and to pursue other changes to Dodd-Frank Act rules, the majority of which have already been finalized.”
With Sen. Mike Crapo (R-Idaho) expected to become chairman of the Senate Banking Committee, the analysis indicated that the panel may work in a more bipartisan manner, particularly in areas where Crapo can attract support from three moderate Democrats up for reelection in Republican-leaning states in the next cycle. On the House side, Financial Services Committee Chairman Jeb Hensarling (R-Texas) is expected to pursue his financial reform agenda again and may look at housing and flood insurance reforms.
Due to a lack of clear and detailed banking-related proposals from the Trump campaign, the outlook from the administration for financial services is less certain, although Trump has expressed support for overhauling Dodd-Frank and said that small banks are especially being harmed by regulatory burden. The analysis noted that Trump will have the opportunity to appoint new heads of the CFPB, FDIC, Federal Reserve and OCC during his term.
ABA President and CEO Rob Nichols today congratulated Trump on his victory. “ABA is eager to work with the new administration and the 115th Congress to achieve our shared goals for a vibrant and growing economy,” he said. “We call on the administration and Congress to come together and work for the common good. We look forward to working with members of both parties on policy solutions that will allow banks to help accelerate economic growth, create jobs, better serve their local communities and help their customers and clients succeed.”
To learn how the new Congress’ actions and the new administration will influence banking’s future, ABA strongly encourages bankers to plan to attend the 2017 ABA Government Relations Summit, to be held March 20-22 in Washington, D.C. The conference offers bankers the opportunity to hear detailed briefings from Washington insiders and express their views to policymakers on key issues. Registration is free.