Trump's Victory, a $700B-Deposits Opportunity, FDIC on AI: This Week's Top Stories
Donald Trump was elected the 47th president of the United States. Read how he turned his vulnerabilities into strengths en route to a historic comeback, where the Harris campaign went wrong, and what happens next. Here's what else you might want to read this week:
"Trump Wins Presidency, Ushering an Era of Less Regulation for Banks"
President-elect Trump's sweeping victory sets up a major shift in the direction of bank regulation over the next four years. When it comes to small banks' prospects, however, some industry execs claim the second Trump administration won't necessarily look like the first one.
The Senate flipped to the GOP as expected, and Senate Banking Committee Chair Sherrod Brown, D-OH, lost his reelection bid to Bernie Moreno, paving the way for new Democratic leadership atop the committee. The House is technically still in play, but it is expected to be Republican-controlled, with the GOP holding a slightly smaller lead than the current Congress.
"Changes Coming to the Fed in a Trump Presidency"
President-elect Donald Trump will be able to make two appointments to the Fed's Board of Governors and select a new chair. He also suggested during his campaign that he would try to exert more influence over monetary policy, but our most recent quarterly survey found bankers were opposed to this idea and other substantive changes to the central bank's independence.
Additionally, the Fed's rate-cutting plans have become more complicated, as Trump made a series of campaign promises related to tax cuts, tariffs, and spending that many economists believe will increase inflationary pressures and expand the deficit. (This week, the Fed cut rates by 25 bps as expected.)
"Trump Will Change the CFPB's Course, but How Much Is Unclear"
The CFPB is another agency that's set to change under a Trump administration, although those changes may not be as widespread as many banks hope, argues American Banker's Washington Bureau Chief John Heltman. At the very least, Director Rohit Chopra will be fired, along with other senior staff who don't share the new administration's policy goals.
"Getting Smarter About Winning Business Deposits"
Small and midsize enterprises are open to moving some $700 billion worth of deposits, one expert claims. To compete for those funds, banks need a good customer-segmentation strategy, strong cross-selling capabilities, and robust fraud-prevention tools, he says.
"What Do FDIC Examiners Think About AI? To Find Out, I Asked One"
FDIC examiners are largely approaching artificial intelligence tools through their standard lens of compliance and risk management, but there are specific issues banks need to be aware of, this article says. It offers suggestions to help banks develop AI policies, set clear expectations for employees on AI usage, and manage risks associated with the technology.
Be sure to also check out this week's episode of Banking with Interest on the threats generative AI agents pose to financial stability, and learn more about the use cases and risks of AI for community banks.
"Community Banks Can Learn from TD Bank's $3 Billion BSA/AML Penalty"
TD Bank was fined $3 billion for AML lapses-the largest penalty ever imposed under the Bank Secrecy Act-after the federal government determined it had allowed criminals and drug traffickers to launder hundreds of millions of dollars through its networks. Community banks can learn several important lessons from the incident, including the importance of periodically switching auditors and taking advantage of free AML training offered by the DHS and IRS, this article says.
"Banks' Gripes with Big Credit Unions Are Gaining Momentum"
Banks and consumer groups are calling for more regulation on credit unions, aligning on issues such as CU acquisitions of banks, tax exemptions, and consumer protections.
"Community Bank Tactics for Recruiting Tech Superstars"
The talent wars rage on. Read how community banks can attract and retain tech talent by offering work-life balance, training opportunities, and other incentives.
"8 of the Biggest Issues Facing the Banking Industry Today"
From TD's asset cap to TikTok-enabled check fraud against JPMorgan to USAA's settlement for overcharging, read about some of the biggest issues institutions have faced so far this year.
"Why Banks Should Rethink 'Every Company is a Software Company'"
Industry narratives surrounding digital-first, BaaS, and artificial intelligence have many banks thinking they need to become software companies to survive. Read why one expert believes banks' efforts to transform digitally would be better spent developing their core competencies.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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