Wall Street drafts Trump wish lists over bank capital, SEC regulation
Banking industry seeks rollback of proposed Basel III Endgame rules
Financial industry aims to preserve lower corporate tax rates
Trump's team more organized in outreach to industry groups than in first term
Adds comments from alternative investment group in last three paragraphs
By Pete Schroeder and Chris Prentice
WASHINGTON/NEW YORK, Nov 8 (Reuters) -The banking and finance industries are rapidly drawing up wish lists for lighter regulation under President Donald Trump's incoming administration as Wall Street sees a window of opportunity to influence policy.
Numerous financial trade groups are working on detailed lists to hand to Trump's transition team, according to four industry sources who asked not to be identified.
That follows weeks of outreach from Trump's team to industry groups, lawyers and lobbyists in preparing for a potential White House return in 2025, according to three sources familiar with the effort. Some of the trade groups want to deliver the wish lists urgently, two of the sources said.
The speed at which the transition team and industry are moving to identify potential regulatory relief underscores how aggressively the new administration could move.
Following Trump's resounding victory on Tuesday, that effort has gained momentum, with Trump allies asking industry players to detail what governmental issues they have and how they should be fixed.
The Trump transition team did not respond to a request for comment.
BANK INDUSTRY REQUESTS
The banking industry is keen to see the next administration step back on numerous contentious rule-writing projects, most notably proposed Basel III Endgame rules, that would require big banks to hold far more capital to reduce risk. Bank groups have pressed regulators for months to drastically curtail those plans and expect the next administration to start fresh or revamp the current product, according to three of the industry sources.
Banks are also likely to seek relief from fair-lending rules that they are battling in court, easier-to-navigate annual big-bank stress tests and a lighter evaluation of bank mergers, said three of the sources.
Banks and the broader financial industry will closely monitor an effort to write tax legislation in Congress, as many provisions of a 2017 tax law ushered through by Trump in his first term are set to expire. Among top industry priorities will be preserving lower corporate tax rates.
The private fund industry is focused on easing an aggressive agenda from the Securities and Exchange Commission, as well as preserving the tax treatment of carried interest so it continues to be taxed as capital gains and not ordinary income, according to one person familiar with the matter.
"The reforms adopted over the last three-and-a-half years enhance efficiency, competition, and investor protection in the U.S. capital markets," a spokesperson said. "The agency’s enforcement actions have held wrongdoers accountable and returned billions to harmed investors.”
The four industry sources said outreach from Trump's team has already been more robust and detailed than in 2016, and suggests a more organized and efficient effort to build out the new administration. In addition to seeking policy recommendations, industry representatives say they also have been asked for input on potential high-level appointees to lead bank and financial regulators.
However, industry sources noted it could still take several weeks or months after Trump is sworn in on Jan. 20 to get some new regulatory chiefs installed, as the Senate is likely to consider higher-level cabinet picks first, two of the people said.
One of the items on the list of the Alternative Investment Management Association, which represents $3 trillion in hedge and private credit funds, is more dialogue between industry participants and regulators.
Private funds have challenged the SEC over its rulemaking and scored a big win this year when a U.S. appeals court in June overturned a major SEC rule imposing stricter oversight of them. The other cases are still pending a court decision.
"I anticipate a return to traditional rulemaking with that proactive engagement, where there's not this adversarial relationship with a majority of the market participant community," said Daniel Austin, head of U.S. markets policy and regulation at AIMA.
Reporting by Pete Schroeder, Chris Prentice, Michelle Price, Nupur Anand and Michelle Conlin; editing by Megan Davies and Rod Nickel
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
