For instance, many would like to see the Volcker rule, which places restrictions on proprietary trading, go away. The rule was intended to prevent federally insured banks from placing speculative bets in the markets, and would be repealed as part of Hensarling's plan.
Some banks are taking a second look at compliance initiatives until they gain further clarity on what will happen in Washington.
At a conference this month, Bank of America Corp Chief Operating Officer Tom Montag said he is being "a little more cautious" about compliance spending. It is difficult to know whether it is worth spending another $30 million on Volcker rule compliance, he said, because doing so may be a waste of money but not doing so could leave the bank at risk if the rule is implemented as planned.
"Even if Volcker doesn't go away, there are still questions about how tough the enforcement would be," said Mark Nuccio, who leads the bank regulatory practice at law firm Ropes & Gray LLP. "Banks are deciding they may take the foot off the gas pedal now and just see what happens."
This article was provided by Reuters.