trending Market Intelligence /marketintelligence/en/news-insights/trending/P2K2reYCzTFoSZPHACfwkA2 content esgSubNav
In This List

Trump begins 'big number' on Dodd-Frank today


Japan M&A By the Numbers: Q4 2023


Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations

Case Study

An Investment Bank Taps S&P's Real Estate Modeling Expertise

Trump begins 'big number' on Dodd-Frank today

President Donald Trump's agenda today includes the signing of another executive order — this time telling the Treasury secretary to figure out how to revise Dodd-Frank. Trump had promised do "a big number" on the Act; yesterday, National Economic Council Director Gary Cohn told The Wall Street Journal the U.S. has "the best, most highly capitalized banks in the world, and [should use it to its] competitive advantage."

Cohn said Trump, using a memorandum, will also ask the Labor secretary to look into revising or rescinding the conflict of interest rule. Known as the fiduciary rule, it is scheduled to take effect in April.

Cohn added, in his interview with the WSJ, that more actions are coming — possibly ones reviewing the Orderly Liquidation Authority and instructing the Financial Stability Oversight Council not to designate nonbanks as systemically important.

Trump will also be meeting with business executives today, including JPMorgan Chase & Co. CEO Jamie Dimon and BlackRock Inc. CEO Larry Fink. At least one person is skipping the gathering however — Uber CEO Travis Kalanick, who has quit the advisory council following backlash from employees and app users. A source for Bloomberg News said at least 200,000 deleted their Uber accounts just this week, but that it was more than offset by the number of new users.

But while Kalanick may have distanced himself from the new administration, another business leader is open to getting closer. Cerberus Capital Management LP CEO Steve Feinberg is considering taking a senior role in Trump's government, according to the WSJ. Feinberg is already a part of the president's economic advisory council.

In Consumer Financial Protection Bureau news, motions filed by state attorneys general, Sen. Sherrod Brown, Rep. Maxine Waters and groups seeking to intervene in the bureau's appeal have been denied. The CFPB is fighting a ruling that its structure is unconstitutional; the recent decision prevents those other parties from stepping in and defending the agency. And American Banker points out, the CFPB is unlikely to find a champion in a Justice Department under Jeff Sessions.

The CFPB is also facing a joint resolution by Sens. David Perdue, Tom Cotton, John Isakson, Ron Johnson, James Lankford, Michael Lee and Michael Rounds. They are using the Congressional Review Act to undo prepaid-card rules expected to take effect in October. The rules place a cap on consumer losses on stolen or lost cards and require financial institutions to make it easier for consumers to access their account information.

Snap Inc. has finally filed for its $3 billion IPO. Morgan Stanley & Co. LLC and Goldman Sachs & Co. Inc. are acting as representatives for the underwriters, which include JP Morgan Securities LLC, Deutsche Bank Securities Inc., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Allen & Co. LLC. Sources for Reuters had earlier said some banks, such as Citigroup Inc. and Royal Bank of Canada, were refused previews of the IPO documents but signed on as co-managers anyway. Snap recorded a net loss per share attributable to shareholders of 64 cents in 2016. It was a net loss of 51 cents in 2015.

In banking news, Frank Pearn is JPMorgan's new chief compliance officer — and the WSJ notes he's the fourth to take on the role in about as many years. Pearn's predecessor is Lou Rauchenberger, who assumed the post in early 2014 when Cindy Armine left. Armine, in turn, succeeded Martha Gallo in January 2013.

Illinois-based MidAmerica National Bank plans to acquire Henry State Bank. At the end of last year, MidAmerica had $337.5 million in assets; Henry had $99.4 million.

And Michigan's West End Financial Corp., which just purchased State Bank of Wisconsin, has applied to buy Ewen Bancshares Inc. West End is the parent company of Gogebic Range Bank in Michigan, which had $74.4 million in assets as of Dec. 31, 2016. Ewen Bancshares' State Bank of Ewen had $62.9 million.

In other parts of the world

Asia-Pacific: Bank of England holds rates; ASEAN governments ramp up spending

Europe: BoE holds rate; Intesa denies Generali bid; Turkish banks downgraded

Middle East & Africa: Loan cap weighs on Kenya growth; Emirates NBD sees retail lending surge

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng slipped 0.24% to 23,129.21, while the Nikkei 225 increased 0.02% to 18,918.20.

In Europe, around midday, the FTSE 100 was up 0.56% to 7,181.04, and the Euronext 100 was up 0.76% to 933.38.

On the macro front

The employment situation report, the factory orders report, the PMI services index and the ISM non-manufacturing index are due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription.