The return of Democrats to Congress sets the stage for increased scrutiny of Wall Street banks, including JPMorgan, Goldman Sachs, and Morgan Stanley. Elizabeth Warren, expected to become chair of the Senate Banking Committee, and Ron Wyden, who is likely to lead the Senate Finance Committee, foreshadow investigations, subpoenas, and hearings. Analysts and legal experts nevertheless expect these measures to amount for now to little more than “political theater” and public shaming, without rapidly changing how banks operate. President Donald Trump’s veto power, the continued leadership of financial regulators by his appointees, and the deregulation already implemented limit the immediate impact on bank earnings and business models.
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