Financial Services Reaction to the Presidential Election

In the few days since the presidential election was decided late Tuesday evening, there has been much speculation as to how the result will affect the banking industry. Does an Obama re-election mean more regulations for the industry? Does this mean key aspects of Dodd-Frank will not be overturned? And how will the outcome affect the economy? Bank Systems & Technology has compiled some of the best quotes from the financial services industry about how the election results may affect the future of

1. Momentum Has Been Lost?

You've lost that momentum where you're softening up the political stance that appears to or tends to be anti-banking.

— Paul Miller, analyst, FBR Capital Markets.

Source: Wall Street Journal

2. Domo Arigato, Mr. Roboto

The banks are going to take it hard. You can expect bankers to act more like robots. Wait till you try to get a loan. It won't be easy.

— UNC Charlotte finance professor Tony Plath, commenting that an Obama victory will lead to bank regulators demanding higher capital requirements, a limitation on banks' ability to fight claims brought by government consumer advocates and the banking industry limiting lending and service to minimize risk.

Source: Charlotte Business Journal

3. Dodd-Frank Momentum

Romney victory could have stopped in their tracks some of unfinished post-crisis rulemakings. With the President re-elected, that barrier is gone.

— Guggenheim Securities analyst Jaret Seiberg, opining that the Obama victory will give new momentum to efforts to implement key aspects of the Dodd-Frank Act.

Source: Market Watch

4. Leave It To Us

The banks say, 'Just tell us what the rules are; we'll figure out how to handle this

— Brian Gardner, an analyst at KBW, an investment bank and broker-dealer that deals in financial services, about bankers' desire for more clarity around the Dodd-Frank regulations, regardless of who won Tuesday's election.

Source: New York Times

5. Policy Affirmation

The Federal Reserve, like the Supreme Court, pays attention to elections and they got an implied vote from the American people about policy interventionism. And so in some sense it validates the more accommodative stance the Fed Reserve took starting in December.

— Vincent Reinhart, Morgan Stanley's chief U.S. economist, after the election.

Source: New York Times

6. Status Quo Needs an Overhaul

Our country is craving leadership, bold direction and greater certainty from Washington, D.C. Clearly, the status quo approach to addressing our fiscal health, stimulating economic growth and laying the groundwork for the long-term vitality of our nation needs a major overhaul now. The election results do nothing to change this essential fact.

— Robert Reynolds, CEO, Putnam Investments

Source: Wall Street Journal

 

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio