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Biden transition teams suggest tighter Wall Street oversight

“Private funds that relied on unimpeded access to people’s retirement accounts should start rethinking their strategy,” said Ms. Roper.

The Biden campaign does not allow members of the agency’s review teams to speak to the media, so it’s hard to know what they’re thinking and planning. But it’s clear that their ability to immediately change financial regulations could be limited by a last-minute push by Republicans to get two remaining Trump candidates on the Federal Reserve Board.

Senate Republicans made it clear on Thursday that they would try to confirm the couple, Judy Shelton and Christopher Waller, before Mr. Trump left office. If both are approved, which seems likely, Mr Trump will have occupied six of the seven seats on the Fed’s powerful board, locking in a Tory majority that could last for years and pave the way for continued surveillance. financial lighter. .

While the Fed may be best known for setting interest rates – a largely non-partisan exercise – it is also one of the most powerful financial regulators. And while monetary policy votes are shared with the Fed’s regional banks, only board members vote on the rules that govern the biggest banks.

There will be limits to what a strongly Republican Fed can accomplish on its own. Many of the most important banking restrictions – like the changes to the Volcker Rule, which prevents banks from betting with their own money – have historically been done on a cross-agency basis.

Jelena McWilliams, whom Mr Trump has named president of the Federal Deposit Insurance Corporation, has indicated she plans to complete her term, which will not end until 2023. But Mr Biden will be able to replace the interim controller of the currency soon. and should do, and other important roles, like secretary of the treasury and head of the Bureau of Consumer Financial Protection, are likely to go quickly to Democrats.

That’s why the industry is listening to members of agency review teams, which could set the tone for what’s to come.

“It will be a significant change in the direction of financial regulation if these people are to be the ones writing the policies,” said Christopher E. Campbell, 2017-18 Assistant Secretary of the Treasury for Financial Institutions. “From my point of view, the landing teams were people who seemed more militant than centrist.”

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