This Thanksgiving, the chance of President-elect Trump’s victory dividing some tables is high. By contrast, banks large and small are now fairly united in their optimism for the new administration.The New York Times recently reported that while small banks only first cheered Trump’s win, big banks have followed. Both are benefiting from expectations that regulations will be rolled back on aspects ranging from banks fees to lending rules. They’re also looking forward to potentially higher interest rates under the proposed stimulus package. But, as the Times points out, the President-elect’s position on the banking industry has been conflicting at times and details of his plans aren’t yet crystal clear.
For example, while he’s stated that Dodd-Frank should be repealed because it has minimized profits, he’s also criticized “Wall Street elites for keeping down small-town America.” According to the Times, small banks think Trump can both limit regulations and rein in Wall Street, and that they will stand to benefit.
Meanwhile, unprepared for Trump’s win, big banks have quickly created a wish list for the new administration. It includes rolling back the Durbin Amendment, which limits debit card fees, and updating the Volcker Rule, which would permit banks to increase their trading activity.
Much is unknown right now, but one small banker quoted by the Times knows for sure that if the President-elect doesn’t keep his promises to the working class, and by extension small banks, there won’t be a second term.