Wall Street’s Trump euphoria ignores hard lessons from the past
The post Wall Street’s Trump euphoria ignores hard lessons from the past appeared on BitcoinEthereumNews.com.
Wall Street’s had a wild week. Donald Trump’s huge victory in the presidential race has investment bankers and private equity moguls more excited than they’ve been in a long while. Now they’re betting on major deregulation, expecting Trump to tear down the regulatory walls built under Biden and open doors for new deals, risky financing, and expanded credit lines. The election outcome feels like a green light for the Street to push boundaries, and they’re ready to take full advantage. The impact is already obvious. Biden’s plans for stricter capital rules and regulations around climate disclosure and outsourcing are likely out the window. Some executives even talk about Gary Gensler, chair of the SEC, and Michael Barr at the Fed like they’re already gone. Private equity and asset management firms are eagerly waiting for a Trump-friendly SEC that would fast-track new financial products. These firms want crypto, private credit, and private equity options added to individual portfolios as fast as possible. Bankers too hope the Fed’s strict annual stress tests on risk levels will be watered down under Trump, freeing banks to take on more aggressive ventures. Investors are even betting on mergers, like a possible one between Capital One and Discover, to slide through with ease. Deregulation dreams and Wall Street’s confidence boost Wall Street bigwigs believe stripping back regulatory “bloat” will jumpstart growth. They argue that regulation stacks up over time, and some cuts are overdue. “Banks are back,” said one insider. “Trump wants to ‘build, baby, build,’ and that needs financing.” But there’s a catch. While some see opportunity, others see a disaster. Trump’s anti-regulation stance, backed by his new “efficiency czar” Elon Musk, could drive skilled regulators to quit. Wall Street wants fast approvals, but a mass regulatory exit might leave agencies unable to handle issues.…
Filed under: News - @ November 11, 2024 7:17 am