The Globe and Mail reports in its Friday, Jan. 10, edition that U.S. banks are thriving, a trend likely to continue with Donald Trump as president. A New York Times dispatch to The Globe reports that under Biden-appointed regulators, attempts to impose stricter rules on major banks were largely unsuccessful, as they were deemed overly burdensome. As proposals stalled, the foundation for existing bank oversight became increasingly shaky thanks to bank-friendly courts. During his first term, Mr. Trump appointed a slate of conservative judges who slowly but significantly shifted the legal environment against strict federal oversight.
Consequently, major banks have been achieving significant victories that may enable them to bypass regulatory scrutiny established after the 2008 financial crisis, when vulnerabilities at the largest global institutions nearly brought down the world economy. With Mr. Trump poised to run the White House again, analysts expect that regulations meant to prevent risky bets by major U.S. financial institutions may be further weakened in the coming months. The tone in regulation is already shifting to focus on providing transparency for banks and unleashing finance.
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