29 Nov 2016
Having spent billions of dollars on post-crisis U.S. financial industry reforms they once scorned, bankers are concerned the Trump administration, joined by a like-minded Congress, will scrap or significantly change the rules.
To comply with a rule known as Dodd-Frank, which was enacted in 2010 following the financial crisis, big U.S banks hired tens of thousands of staffers, built new technology systems, hived off businesses, simplified corporate structures and doubled the amount of capital they hold.
JPMorgan Chase & Co has said that in its mortgage business alone, employees spent 800,000 hours in compliance training in a single year.
The industry went into these changes kicking and screaming. Banks lobbied hard against Dodd-Frank as it was being drafted, then cajoled regulators to go easy in defining and implementing precise rules. But now that the heavy lifting has been done and Dodd-Frank is largely in effect, the industry see a total elimination as more of a threat than a blessing.
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