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Subject

US financial regulation outlook.

Significance

President-elect Donald Trump can make a decisive imprint on the financial regulatory institutions and practices of the United States. By selecting individuals who share the free-market principles he seeks to promote, he can reshape the personnel at key agencies. In tandem, he can work with the Republican-controlled Congress to enact new legislation delimiting regulatory agencies’ brief, authority and resources.

Impacts

Presidential appointees to head agencies will determine what issues are prioritised and how interventionist policy will be.

A Trump SEC chair appointee is likely to encourage a return to industry self-policing over federal scrutiny and enforcement.

Backsliding by US regulators could have a negative knock-on effect for international Basel IV negotiations.

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