US banks have set up “war rooms” to assess the impact of President Donald Trump’s executive orders on trade and regulation. The moves come as global markets brace for volatility following Trump’s return to the White House.
Trump has revoked nearly 80 executive actions by former Democratic President Joe Biden, including orders for an immediate freeze on new federal regulations and government hiring. Global markets have reacted quickly, with the Canadian dollar falling against its US counterpart after Trump threatened a 25% tariff on Canadian goods.
StanChart CEO Bill Winters says global trade flows will suffer from “interesting ructions” as the new administration settles in. The bank’s role connecting between markets could benefit from disruption, while locally-focused banks may struggle.
BNY CEO Robin Vince criticizes regulation, saying it has been “stifling” and needs to be supportive of growth. He calls for the right regulation that enables growth, rather than impeding it.
The US banking system faces a new set of regulations and uncertainty under Trump’s administration, with some calling for Europe to press pause on new reforms and supervision. The European Union has already weighed its options after the Bank of England delayed tougher bank capital rules by a year.
Source: https://www.reuters.com/markets/trumps-return-white-house-will-bring-trade-ructions-stanchart-ceo-says-2025-01-21