Rollback Poised to Reshape Financial Services Regulation in 2017

ARLINGTON, Va., Dec. 19, 2016 /PRNewswire-USNewswire/ -- Bloomberg BNA today released its 2017 outlook on financial services, which looks ahead to a year in which a Republican administration and Republican-controlled Congress seek to roll back a number of financial services regulations that were an Obama administration hallmark. The outlook is available on Bloomberg Law and a complimentary copy is online at https://www.bna.com/2017-outlook-financial-services/. 

"The Trump administration is promising sweeping changes for the Dodd-Frank Act and the financial regulatory system," said Susan Jenkins, News Director, Corporate & Transactions, Bloomberg BNA. "There's a great deal of alignment between Congressional Republicans and the incoming Trump administration on the need to loosen financial regulations that were put in place during the Obama administration. What bears watching is the degree to which they will achieve these goals despite a closely divided Senate."

Highlights of the 2017 Outlook include:

Dodd-Frank Act: While President-elect Donald Trump has pledged to take apart Dodd-Frank, the outstanding question is how far Republicans might go in dismantling the post-financial crisis regulatory framework. House Republicans have proposed a wholesale rollback, but their Senate counterparts seem disinclined to go that far, and analysts expect any overhaul to take some time. 

The Consumer Financial Protection Board (CFPB): The agency is facing a multi-front battle in 2017, as challenges from Congress and in the courts may dramatically impact its leadership and autonomy. It faces formidable opposition from Republicans on Capitol Hill who want a different leadership model and an end to a funding arrangement designed to encourage independent action by the CFPB. It is also appealing a U.S. Court of Appeals ruling that effectively converts the CFPB from the independent agency created by Dodd-Frank into just another executive branch agency. 

The Securities and Exchange Commission (SEC): The rules outlined by departing Chairman Mary Jo White could drop off the commission's agenda with a new SEC chairman able to strip finished rules back or simply ignore measures that yet to be adopted. The agency is also drawing scrutiny from Republicans over its choice of forum for suing alleged wrongdoers, who want to move proceedings from the agency's in-house tribunal to federal court.

Banking Regulation: Shifting political dynamics could open the door for even broader discussions about the structure of the regulatory system, including consolidation of the banking agencies. In regulation and oversight, a pullback in fair lending enforcement is in the cards, with less focus in particular on disparate impact discrimination. The Office of the Comptroller of the Currency has shared its intent to play a lead rulemaking role in the emerging financial technology space.

Bloomberg BNA publishes a number of 2017 outlooks across business areas that address the policies likely to shape the year ahead. To view them all, visit https://www.bna.com/2017-outlook.

About Bloomberg BNA
Bloomberg BNA provides legal, tax and compliance professionals with critical information, practical guidance and workflow solutions. We leverage leading technology and a global network of experts to deliver a unique combination of news and authoritative analysis, comprehensive research solutions, innovative practice tools, and proprietary business data and analytics. Bloomberg BNA is wholly-owned by Bloomberg L.P., the global business, financial information and news leader. For more information, visit www.bna.com. 

SOURCE Bloomberg BNA

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