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[Usobuko]

NEW YORK — After eight years of unrelenting scrutiny and billions of dollars in legal settlements, the banking industry suddenly is facing a more hospitable political climate in Washington next year.

Prior to November 8, Wall Street had been girding for a potential Democratic victory that would have empowered progressive firebrands like Massachusetts Democrat Elizabeth Warren, who has pushed to break up large banks and jail banking executives in the wake of the finanical crisis.

Instead, the Republican sweep of Congress and President-elect Donald Trump’s election in one fell swoop bolstered the chances for pro-growth measures, tax cuts and loosening of a whole swath of regulations, including the 2010 Dodd-Frank banking law passed in response to the crisis.

“You’re going to have a very substantial reversal in regulations of all types,” Blackstone Group chief executive Stephen Schwarzman told the Goldman Sachs banking conference Tuesday.

Schwarzman, a major Republican donor tapped by Trump to chair a advisory council of prominent business leaders, gushed that the election would usher in the biggest regulatory revolution in his 45 years in finance.

Trump’s cabinet appointments have furthered the sense that his presidency will be good for big finance.

And he tapped Goldman Sachs President Gary Cohn to lead the National Economic Council, according to reports Friday, his third major personnel pick from the prestigious New York investment bank following selections of Steven Mnuchin as Treasury secretary and Steve Bannon as chief strategist.

Critics have accused the president-elect of hypocrisy after he railed against Wall Street on the campaign and then brought many financial market insiders onto his team.

“We’re intensely worried,” said Bart Naylor, financial policy advisor at Public Citizen, a consumers advocacy organization.

“What we do have on our side is a public that knows the banks screwed them to get into the financial crisis.”

Wall Street itself is literally cashing in on the fat expectations.

The S&P banks index has surged more than 25 percent since November 8, lifting the entire sector, including Goldman Sachs, the midsized Capital One and regional banks like KeyCorp in Cleveland.

Yet Erik Oja, a banking analyst at CFRA, rejected the suggestion that big banks will win major rollbacks under the Trump administration. Smaller banks may win concessions, but big banks are still under fire.

“I don’t think there’s any political will at all to do any rollback for the largest banks,” Oja said, who added that there was still a remote chance large banks could face calls to break them up.

Oja attributed the rise in bank share prices primarily to rosier outlooks about the economy due to the anticipated pro-growth policies and the expectation the Federal Reserve will accelerate interest rate increases.

During the presidential campaign, Trump vowed to dismantle the Dodd-Frank law, whose main provisions include tougher capital requirements on banks, the creation of the Consumer Financial Protection Board and Volcker rule, which restricts the ability of big banks to make highly lucrative investments that do not benefit their customers.

Smaller regional banks in particular have complained about the burden of regulations meant to rein in excesses of the large banks that could take down the whole system.

Mnuchin took aim at the 2010 law last week, shortly after he was picked for the Treasury post.

“The number one problem with the Volcker rule is it is too complicated and people don’t know how to interpret it,” Mnuchin said. “So we’re going to look at what to do with it, as we are with all of Dodd Frank with the number one priority that banks lend.”

At the Goldman Sachs conference, large banks offered guarded optimism on regulatory relief they expect from Washington.

“The first thing I would ask for is nothing new, no new rules,” said Citigroup chief financial officer John Gerspach, who said unnecessarily high liquidity requirements crimp lending.

Bank of America Chief Executive Brian Moynihan estimated his bank was holding about $15 billion in “excess” capital due to overlapping regulatory requirements that could be returned to shareholders.

“At the end of the day, we are overcapitalized,” he said.

But Marty Mosby, banking analyst at Vining Sparks, said the changes have broadly succeeded since 2008 in safeguarding the financial system, even if there have been some regulatory excesses.

Overregulating and overcapitalizing big banks is preferable to the alternative “because you can’t have those banks failing,” he said.

source

Trickling down bread crumbs to your average man policy.

 

[hydrophilic attack]

hillary's speeches at goldman sachs tho

 

[dave is ok]

"Unrelenting scrutiny" isn't how I would describe Holder's tenure with regards to the banks

 

[The Last Wizard]

Water is wet.

 

[Rebel Leader]

Here we go again

 

[whytemyke]

The liberal in me is dreading the next 4 years

But the mortgage banker in me is looking at new cars on the internet.

Soooo, yeah.

 

[Bubba T]

It's like 2008 never happened

 

[phanphare]

so trump was totally full of shit

crazy plot twist!!!!

 

[PInk Tape]

Shocking.

 

[Regulus Tera]

Greater Depression here we GO

 

[Somnid]

I'm looking to buy a house, not as an investment, as a place to live. I wouldn't mind if they tanked that part of the economy to be selfishly honest.

 

[yanipheonu]

What could possibly go wrong?

 

[Usobuko]

The liberal in me is dreading the next 4 years

But the mortgage banker in me is looking at new cars on the internet.

Soooo, yeah.

I have shares in US Banks so likewise I going to benefit from this ( already did ) but the liberal is me feels sorry for everyone else.

It's akin to modern globalisation, the stakeholders get the lion share of the pie.

 

[dave is ok]

I'm looking to buy a house, not as an investment, as a place to live. I wouldn't mind if they tanked that part of the economy to be selfishly honest.

Until the lending requirements get tightened to the point where you don't qualify, sure

 

[Laevateinn]

Trump is going to be great for my pocketbook. I will probably be getting a huge bonus and raise because of this. Not to mention any tax breaks. I guess this gives me more money to donate to things like ACLU and Planned Parenthood. I'd take a modest raise and a bonus over what's to come though.

 

[Bruce Springsteen]

The liberal in me is dreading the next 4 years

But the mortgage banker in me is looking at new cars on the internet.

Soooo, yeah.

Empathy, we don't have any

 

[Stinkles]

I benefit tremendously from a Trump presidency. Fiscally I will be making bank. But I will be living in a dumb shithole eventually. And the things I care about politically and morally will be trashed.

 

[Aeriscloud]

Wrong thread

 

[Psychoward]

The liberal in me is dreading the next 4 years

But the mortgage banker in me is looking at new cars on the internet.

Soooo, yeah.

...

You're a piece of work.

 

[Beer Monkey]

Looking forward into buying in after the next crash, I guess.

 

[Sidewinder]

I make tremendous financial crisises, the best!

Why learn from past mistakes, if these didn't affect you one bit?? Rich will get richer and the poor will be even worse off. Well done 'merica!

 

[Angelus Errare]

So happy my mom's two homes are paid off and she's giving one to me. Cause America is fuuuuuuuuuuucked.

Empathy, we don't have any

...

You're a piece of work.

I mean the dude voted for Hillary but the reality is Donald won, can't fault him for using the extra money he's about to be blessed with.

 

[Psychoward]

Remember when Trump praised the recession as being good for business without a hint of empathy to the Americans financially ruined during it and people still voted for him. Good times.

 

[Plinko]

We really at this point should just have a pinned thread titled "(Insert group of rich people here) will see fat payday under Trump administration."

 

[Bruce Springsteen]

I mean the dude voted for Hillary but the reality is Donald won, can't fault him for using the extra money he's about to be blessed with.

Sure, it's just funny how some posters are just in this thread to brag about this benefits them, don't get it twisted thinking they're just simply "sharing their perspectives"

 

[Somnid]

Until the lending requirements get tightened to the point where you don't qualify, sure

Loans aren't an issue for me, inflated prices are. Even better if I could buy something old and cheap and knock it down. Fuck buying the house, I want the land to build my tiny self-sustaining eco-home.

 

[whytemyke]

...

You're a piece of work.

You can only go so long feeling terrible about what's going on in this country before you realize that this country by and large allowed this shitshow to happen. Democrats can claim fraud all they want but between the people who voted for Trump and the people who didn't lift a finger to stop him, active liberals seem to be in the minority. Anyways, that aside...

I do what I can to make sure that the clients in front of me are taken care of and not doing anything stupid, and oftentimes I do it even now to the detriment of my career. (Take a guess on how many promotions you get when you tell your boss that you're not writing a loan because it doesn't make sense for the client.)

But the whole "rising tide" thing come to mind here. I'd be lying if I said I'm not happy that at least I'm in an industry where I can take advantage of this insanity and use it to pay off my student loan debt. Despite in the back of my mind knowing that this likely will eventually destroy the economy and pretty much end the era of the American hegemony.

What else are the options? Quitting my job? Making less money? How does that help anyone?

 

[Zaraki_Kenpachi]

What could possibly go wrong?

It won't be subprime mortgages though. People have to be more alert than that.

 

[Psychoward]

You can only go so long feeling terrible about what's going on in this country before you realize that this country by and large allowed this shitshow to happen. Democrats can claim fraud all they want but between the people who voted for Trump and the people who didn't lift a finger to stop him, active liberals seem to be in the minority. Anyways, that aside...

I do what I can to make sure that the clients in front of me are taken care of and not doing anything stupid, and oftentimes I do it even now to the detriment of my career. (Take a guess on how many promotions you get when you tell your boss that you're not writing a loan because it doesn't make sense for the client.)

But the whole "rising tide" thing come to mind here. I'd be lying if I said I'm not happy that at least I'm in an industry where I can take advantage of this insanity and use it to pay off my student loan debt. Despite in the back of my mind knowing that this likely will eventually destroy the economy and pretty much end the era of the American hegemony.

What else are the options? Quitting my job? Making less money? How does that help anyone?

Fair enough.

 

[Angelus Errare]

We really need to go wild. We need a recession + ACA?medicaid/social security/medicare repeal + Student loan bubble burst.

 

[yanipheonu]

It won't be subprime mortgages though. People have to be more alert than that.

Unfortunately there weren't many animated gifs for whatever the future financial crisis is.

Here, let's go with good old Simpsons gif.

 

[Fragamemnon]

I benefit tremendously from a Trump presidency. Fiscally I will be making bank. But I will be living in a dumb shithole eventually. And the things I care about politically and morally will be trashed.

What's crazy is how far up in the income percentile you really have to be to benefit tremendously-I'm pushing top 5% income and even then what I get back is nothing like what the 1% get. NOTHING.

Also no price would be too small to live in a proper pluralistic multiracial social democracy.

 

[brinstar]

The liberal in me is dreading the next 4 years

But the mortgage banker in me is looking at new cars on the internet.

Soooo, yeah.

can you adopt me

 

[adj_noun]

The cosmic joke here is the economic anxiety being alleviated couldn't be further from that of the average Trump voter.

 

[Shig]

The liberal in me is dreading the next 4 years

But the mortgage banker in me is looking at new cars on the internet.

Soooo, yeah.

As long as you're donating some of the windfall to charities like the ACLU, you good.

Also probably look into stashing a lot of cash into recession-resistant investments, for when the other shoe drops.

 

[Pagusas]

So anyone have a quick how-to invest guide to gain some of these profits.

 

[Pop-O-Matic]

It won't be subprime mortgages though. People have to be more alert than that.

Really, after all we've seen in the past year and a half, do you still have faith that people won't fall for this shit again?

 

[Bruce Springsteen]

So anyone have a quick how-to invest guide to gain some of these profits.

Magically gain access to lots of capital to invest

 

[Beer Monkey]

Unfortunately there weren't many animated gifs for whatever the future financial crisis is.

Here, let's go with good old Simpsons gif.

#whatsintheshed

https://www.youtube.com/watch?v=nFgFvQ28qKE

 

[Wilsongt]

Yeah but Clinton gave private, paid speeches to these people. Totally worst than this.

 

[tuxfool]

Magically gain access to lots of capital to invest

Oh, the Jill Stein method.

 

[wenis]

Yeah but Clinton gave private, paid speeches to these people. Totally worst than this.

but what were those speeches saying mannnnn.

 

[Balphon]

On the plus side, can't wait for The Big Short 2 in 2024.

 

[DragonSworne]

Greater Depression here we GO

Best Depression

 

[Pagusas]

Best Depression

Make depressions great again. None of this recession crap.

 

[Man-is-Obsolete]

Hey the sun also rose today, and it looks like it is starting to.... yes I can confirm it is beginning to set as well.

 

[RPGCrazied]

No shit. Rich get richer, poor get poorer. That is what is going to happen. And sad that so many people were conned. Oh well, lesson will have to be learned I guess.

 

[Vicetrailia]

And the middle class and below ain't getting shit. I should have went into finances.

I'm graduating in Industrial Engineering, do I have a way in?

 

[Ferrio]

I have shares in US Banks so likewise I going to benefit from this ( already did ) but the liberal is me feels sorry for everyone else.

It's akin to modern globalisation, the stakeholders get the lion share of the pie.

Empathy, we don't have any

...

You're a piece of work.

I don't get the issue with what he said? Reality is reality, we have Trump as president unless something crazy happens. Do you want only assholes and the right to benefit?

 

[jelly]

When do us plebs get the bill for this?