- In the wake of last-night’s election, KBRA has been asked by a number of clients to handicap the next year in terms of the policy agenda of President-elect
Donald Trump. In the short-term we do not expect any major changes in the monetary or regulatory environment, but that said the magnitude of the Trump victory may change that calculus.
- While the economy and taxes is probably the most politically attractive to the new President, these areas are also the most difficult in terms of the amount of heavy lifting needed to make actual legislation a reality. Likewise, dealing with the repeal of the Affordable Care Act is the very attractive alternative politically, but like tax reform it also requires a great deal of time and effort.
- KBRA believes that one strong possibility is passing a modified version of The Financial Choice Act, which is the project of
House Financial Services CommitteeChairman Jeb Hensarling, R- Tx.The CHOICE Act allows well-capitalized regional and community banks to opt out of much of the enhanced Dodd-Frank regulatory requirements, modifies the resolution authority in Dodd-Frank, repeals the Volcker Rule and the Durbin Amendment, repeals the Financial Stability Oversight Council’s SIFI Designation Authority, and eliminates the Office of Financial Research, among other provisions.
- KBRA believes that The CHOICE Act could be tweaked to make it palatable to the
Senateand, despite Democratic opposition, could become law far more easily than either a tax reform bill or ACA reform.
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