What Does a Second Trump Term Mean for Banking Policy

11/06/24

Next year, Republicans will have control of the US Senate, as well as the White House giving them the significant ability to reshape banking regulation. As of the writing of this article, the US House of Representatives control is still too close to call. This means that President Trump will have the ability to decide who will be running the federal regulatory agencies, and a friendly Chamber to confirm his selections. We are expecting those regulators, on day one, to start the process of rolling back some of the more egregious regulatory policies under the current administration. The OBL is already engaging in discussions and strategy on how our industry can best use this opportunity to right size regulation to allow our banks to best serve their communities. Under the Biden Administration, some federal regulators have acted outside of their statutory authority, and we have increasingly needed to go to the courts to rein in those rogue agencies. In those cases, which we have listed below, we would expect the industry to be able to garner support from the Trump Administration to roll these policies back for the benefit of our industry and our customers.

• Section 1071 Small Business Data Collection Rule
• Reg II interchange proposed rule in front of Federal Reserve Board
• Federal Trade Commission noncompete rule essentially making all noncompete agreements null and void
• CFPB Credit Card Late Fee Rule
• FDIC application of UDAAP for Overdraft
• Interagency Community Reinvestment Act Modernization
• CFPB's UDAAP exam manual changes
• Reg E interpretation on when and how banks are liable for customer fraud.