"Assessing Opinions": Bank of America and JPMorgan leaders discuss the potential return of Trump in politics
In the rapidly evolving regulatory landscape, bank executives from major institutions like Bank of America, JPMorgan Chase, and Wells Fargo are advocating for changes to the Biden-era open banking rules, currently under review by the Trump administration.
JPMorgan Chase, in particular, has been a vocal opponent of certain aspects of the open banking rule. The bank, led by CEO Jamie Dimon, has introduced fees for fintechs accessing customer data, citing the substantial costs required to maintain the security and usability of such data. Dimon is also the chairman of the Bank Policy Institute, which is suing to block or revise the open banking rule, arguing that the Consumer Financial Protection Bureau (CFPB) exceeded its authority in promulgating it.
Bank of America and Wells Fargo are part of the broader banking industry's pushback. Although specific executive quotes are not available, both banks are members of the Bank Policy Institute, which is actively challenging the rule in court. Both institutions are also engaged in innovations related to digital assets, indicating a dual approach of opposing some regulatory changes while engaging in fintech and crypto sectors.
The Bank Policy Institute, which includes Bank of America, JPMorgan Chase, and Wells Fargo among its members, has asked the U.S. courts to block or substantially revise the open banking rule. This stance reflects an executive stance favoring reduced regulatory burdens and greater flexibility. The CFPB, now overseen by the Trump administration, has moved to revise or vacate parts of the rule consistent with the banks’ legal challenge.
Bank executives seem to expect a more favorable regulatory environment under the Trump administration that recognizes the banks' interests in managing costs associated with data sharing and security. They anticipate potential relaxation or revision of the open banking rule to allow fees or other controls on data access. The executives also expect an approach that balances regulatory oversight with the banks’ pursuit of innovation in fintech and digital assets.
The regulatory arena is experiencing significant change, with key appointments such as Rodney Hood as the acting comptroller of the OCC and Jonathan Gould as the nominee to lead the OCC by the White House. JPMorgan Chase Chief Operating Officer Jennifer Piepszak stated that the new Trump administration's changes are dominating the conversation.
Bank executives welcome efforts to increase transparency in the Federal Reserve's stress testing process. However, they express concerns about the challenge of consistency in the regulatory changes. For instance, Wells Fargo CFO Mike Santomassimo expects more meaningful discussion on stress test changes this year, while Bank of America CEO Brian Moynihan believes there is a re-engineering effort taking place at the Consumer Financial Protection Bureau.
The industry would like a Basel III rule to be finalized for certainty around balance sheet management. However, some executives, like Wells CEO Charlie Scharf, have expressed frustration about the delay in finalizing the Basel III rule.
In summary, major banks are pushing for regulatory adjustments under the Trump administration to ease the compliance burden posed by the Biden-era open banking rule. The executives expect a more favorable regulatory environment that acknowledges both consumer protection and banks’ operational realities. JPMorgan Chase, notably, has signaled readiness to charge fees for open banking data access, which reflects a broader banking industry stance seeking a more measured supervisory approach.
Finance and politics intertwine as bank executives, including those from JPMorgan Chase, Bank of America, and Wells Fargo, advocate for changes to the Biden-era open banking rules, currently under review by the Trump administration. The executives are pressuring for a regulatory environment that recognizes their interests in managing costs associated with data sharing and security while balancing consumer protection and fintech innovations.
