Politics

Experts anticipate that Trump's victory and expected shifts in regulatory leadership will delay finalizing Biden-era capital rules for large banks, with new officials likely favoring a less stringent Basel III framework and softer capital requirements.

An index of bank stocks rose 8.5% early Wednesday after Donald Trump won his bid to return to the White House.

Former President Donald Trump rode waves of voter discontent over inflation to win key swing states that he lost in 2020 and reach the necessary 270 votes. He told supporters Wednesday morning that he's been given "an unprecedented and powerful mandate."

California's 47th Congressional district, which is being vacated by Rep. Katie Porter, D-Calif., after her unsuccessful bid for California's senate seat, is being sought by law professor and Democrat David Min, who has been an outspoken progressive on banking issues. Running against him is Republican Scott Baugh, who ran unsuccessfully against Porter in 2022.

The impact of both presidential candidates' fiscal promises around taxation and spending could have dramatic effects on the Federal Reserve's outlook for monetary policy, which has become more aggressive toward rooting out inflation.

American Banker is live-blogging the U.S. election, providing quick updates on races that matter for bankers on Election Day.

Banks have favored the low-regulation vision of former President Donald Trump in the 2024 election, but his victory could imperil institutions and norms that banks rely on. Vice President Kamala Harris is more likely to preserve the status quo — including the Biden regulatory agenda.

Consumer groups and banks are pushing for increased regulation on credit unions, aligning on concerns over tax exemptions, consumer protection standards, and the rising trend of credit union acquisitions of community banks.

Analysts are watching both Vice President Kamala Harris and former President Donald Trump for potential regulatory picks, as well as how strongly Trump advocates for policies like tariffs and deportations that could impact the economy, inflation and bankers' prospects.

Leaders at financial institutions said borrower demand should pick back up, if slowly, following Tuesday's vote.

Judy Dimon is a longtime donor to Democratic candidates and an education advocate who has been public in her support for Vice President Kamala Harris.

Potential new Senate Finance Committee Chair Sen. Mike Crapo, R-Idaho, has suggested a potential workaround to offset the cost of extending the Tax Cuts and Jobs Act.

Sens. Elizabeth Warren and John Hickenlooper say recent data suggests there is "no need for restrictive interest rates" and easier monetary policy is necessary to lower housing costs.

It is nonsensical for the government to sue one of the leading lenders in an underserved minority community as a means of encouraging more lending in that community.

Decentralized digital ledgers offer financial services supervisors extraordinary access to information while eliminating concerns about information reliability. That should be reflected in regulatory attitudes toward crypto.

Systemic racial inequality has long been a drag on the U.S. economy, and nowhere is that more apparent than in the housing market. There are smart strategies that would even the playing field.

Initial employment data shows virtually no job growth in October. With the Federal Reserve's focus on the labor market, the reading could seal the deal for a November rate cut.

House Republicans called on regulators to balance the need for more rules around bank-fintech partnerships with the need to foster innovation and consumer access and emphasized collaboration with state regulators.

Banks are not likely to see their regulatory capital requirements decline any time soon. But the way capital levels are calculated could be made more reflective of real risks.

Core PCE held steady as service costs rose, but the overall report maintains the central bank's flexibility ahead of next week's Federal Open Market Committee meeting.