“Private funds that count on getting unrestricted access to people’s retirement accounts should rethink their strategy,” said Ms. Roper.
The Biden campaign doesn’t allow members of the agency review team to speak to the media, so it’s difficult to know what they’re thinking and planning. It is clear, however, that their ability to effect an immediate change in financial regulation could be limited by short-term pressure from Republicans to add two remaining Trump candidates to the Federal Reserve Board.
Senate Republicans made it clear on Thursday that they will attempt to ratify the Judy Shelton and Christopher Waller couple before Mr Trump leaves office. If both are approved, which seems likely, Mr Trump will have six of the seven seats on the powerful Fed executive board, securing a conservative majority that could last for years and potentially pave the way for easier financial supervision to continue.
While the Fed is best known for setting interest rates – a largely impartial exercise – it is also one of the most powerful financial regulators. While monetary policy votes are shared with the Fed’s regional banks, only board members have votes on the rules that govern the largest banks.
There will be restrictions on what a Republican Fed can do on its own. Many of the more important banking restrictions – such as changes to the Volcker Rule to prevent banks from wagering with their own money – have historically been imposed on a multi-agency basis.
Jelena McWilliams, who Mr. Trump has named chairwoman of the Federal Deposit Insurance Corporation, has signaled that she plans to extend her full term, which will not end until 2023. But Mr Biden will be able, and is likely to, to replace the incumbent currency converter quickly, and other key roles such as Treasury Secretary and Bureau Chief Financial Officer are likely to go quickly to the Democrats.
Because of this, the industry is geared towards who is on the agency’s review teams, who might set the tone for what’s to come.
“There will be a significant change in the direction of financial regulation when these people write the guidelines,” said Christopher E. Campbell, Treasury Deputy Secretary for Financial Institutions from 2017-18. “In my view, the landing teams were people who were more activist than appeared to be centrist. “