Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Wall Street bankers temper optimism a week after Trump victory

admin by admin
November 13, 2024
in Stock
0
Wall Street bankers temper optimism a week after Trump victory
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

By Pete Schroeder and Lananh Nguyen

NEW YORK (Reuters) – As Wall Street financiers gathered in downtown Manhattan on Wednesday, their optimism about President-elect Donald Trump’s deregulatory agenda was tempered by uncertainty over his personnel and policies.

Bankers were still bullish on deals. They expected friendly regulators to be installed atop key agencies, sweeping away onerous regulations. Yet one week after Trump’s election victory, industry experts shifted their focus to Trump’s financial policies and how they would play out.

“Banks can’t have everything,” Erika Najarian, an analyst at UBS, told the industry conference on Tuesday. While they are benefiting from “wide open” capital markets, “we have to sort of temper enthusiasm when it comes to loan growth for next year” if interest rates stay higher for longer. 

Attendees also speculated about Trump’s potential roster of financial regulators and predicted which companies stood to gain most from the new regime.

“The administration is going to be this interesting mix of kind of laissez-faire, plus pro-business, plus populism,” said Jon Lieber, Eurasia Group’s head of research for the U.S. “How those three things interact are going to be happening in weird ways.”

For instance, Trump is expected to scrap a proposal for higher capital requirements that was strongly opposed by banking giants. And attendees argued banks are well-positioned to push for further relief and rollbacks of Democratic priorities as economic growth remains a top Trump pledge.

“Sometimes you will win and sometimes you will lose, but the CEOs frankly have to have the backbone to fight the regulators when they think they are right,” said Jelena McWilliams, the former chairman of the Federal Deposit Insurance Corporation in Trump’s first term.

But the incoming president’s populist leanings could see him do things like extend a Biden-era fight against banks’ so-called “junk fees” that are unpopular among consumers. While they did not expect it to become reality, several attendees noted Trump’s campaign promise to cap credit card interest rates as the type of populist pitch he is capable of making.

Meanwhile, banks that are already in the regulatory penalty box are unlikely to be given easier treatment by the new administration, attendees said, and intense scrutiny of lenders’ efforts to prevent money laundering and criminal financing will also remain high as geopolitical tensions escalate between the U.S. and its adversaries.

Trump’s focus on crypto could also increase competition for banks, said Aaron Klein, a senior fellow in economic studies at the Brookings Institution. 

While lenders may get a short-term boost in profits from lighter regulation, their business could be eroded in the long term if financial activity migrates to more lightly-regulated areas such as the fintech or crypto industries, Klein said.    

Bitcoin climbed to a record $89,982 on Tuesday on expectations that Trump will embrace crypto.

“The incoming administration has an opportunity to deliver on campaign promises,” said Dante Disparte, the chief strategy officer and head of global policy at Circle, the principal operator of stablecoin USDC.

This post appeared first on investing.com

Previous Post

UK markets watchdog softens ‘overcooked’ naming and shaming plan

Next Post

VW boosts investment in Rivian, but significant challenges remain

admin

admin

Next Post
VW boosts investment in Rivian, but significant challenges remain

VW boosts investment in Rivian, but significant challenges remain

Trending News

Why has Quantum stock quadrupled in recent days?

Why has Quantum stock quadrupled in recent days?

November 25, 2024
Manolo Blahnik’s China arrival: a 22-year journey culminates in Shanghai boutique

Manolo Blahnik’s China arrival: a 22-year journey culminates in Shanghai boutique

November 8, 2024
Brazil’s economy expands 3.4% in 2024, beating expectations

Brazil’s economy expands 3.4% in 2024, beating expectations

March 7, 2025
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.