After a banner year that included the passage of a significant regulatory relief package easing portions of the Dodd-Frank Act, the banking industry is now likely facing a period of legislative gridlock in 2019.
Although Republicans maintained control of the Senate in the November midterm elections, Democrats won the House, setting the stage for political clashes ahead.
Rep. Maxine Waters, D-Calif., the current ranking member of the House Financial Services Committee who will now chair the panel, strongly opposed the reg relief legislation, and she has sparred with Republicans over bills that help Wall Street and limit consumer protection. On the Senate side, Banking Committee Chairman Mike Crapo, R-Idaho, is expected to continue to hold the gavel.
What will likely result is heated rhetoric from Democrats in the House and negative headlines for the firms in their crosshairs.
Read more in American Banker.