‘Animal spirits alive’ as Wall Street bankers anticipate Trump boom
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President expected to slash financial controls and prompt wave of dealmaking. Wall Street bankers say they are at the beginning of “go mode” as they expect Donald Trump’s return to the White House to lead to a boom in the industry. Trump’s second term is expected to result in a bonfire of regulations, including across financial services, with the president having promised during his election campaign to slash 10 existing regulations for every new one in an attempt to spur economic growth.
It has buoyed spirits across the banking sector, where bosses have long bemoaned tougher rules introduced after the 2007-8 banking crisis which brought the global financial system to the brink. “Time will tell, but a lot of this is exactly what you would do to have a very pro-business environment,” JP Morgan’s head of asset and wealth management, Mary Callahan Erdoes, told a panel discussion at the World Economic Forum in Davos, Switzerland.
She said US banks were “in the beginning of go-mode” and that “animal spirits are alive” across Wall Street, given that looser regulation is expected to prompt a wave of dealmaking that could benefit investment banks. “Look, regulation has been stifling,” the chief executive of the US bank BNY, Robin Vince, told the panel. “It’s really against the whole purpose that governments around the world have in trying to enable growth for their countries.”.
