With the re-election of President Barack Obama and, perhaps almost as important to banks, the election of Elizabeth Warren to the Senate, the financial services industry faces an uncertain regulatory future. One platform Republicans ran on was repealing parts of the Dodd-Frank bill, saying it adversely affected the growth of the banking industry.
It now seems unlikely any part of the bill will be repealed, and in fact further regulatory scrutiny may come upon the sector. Already some are saying the banking industry needs to engage in bridge-building with the president and regulators after its preferred candidate lost. Many industry observers now predict regulators will be emboldened and look for more oversight into the financial services sector. According to Reuters:
"Senate Democrats and the president will block any attempt to re-write the Dodd-Frank Act, and the continuing Democratic majority in the Senate will leave the president with a relatively free hand to nominate regulators committed to a fairly aggressive interpretation of the landmark financial law."
The landscape could change with Republican victories in the 2014 midterm elections, but, for at least the next two years, banks may be looking at more, not less, regulation.
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio