What Happens to Bank Culture in the Trump Era?
By John Heltman
With the inauguration of the new administration near, uncertainty lingers about whether bank regulators’ various efforts to improve culture at the biggest banks will clash with the pro-growth, deregulatory agenda that Republicans envision. … So while the incoming administration’s approach may change, few believe that the issue will go away entirely. Karen Shaw Petrou, managing partner with Federal Financial Analytics, said scandals involving the banking industry have a way of making the question of bank culture difficult for regulators to ignore. … “Something always comes up that turns out to be damn handy if you want to make a point about bank culture,” Petrou said. “Secondly, this is a regulatory call. Things will change slowly through 2017 unless or until we have a new Fed vice chairman for supervision … and even then you’re going to have pretty much the same Fed through the first half of the year, you’re going to have the same comptroller through about the first half of the year, you’re going to have the same Federal Reserve Bank of New York for a while, and the same FDIC for a while.”