Less Enforcement
Scaramucci, founder of SkyBridge Capital and impresario of an annual industry conference in Las Vegas, says over-regulation was the “root cause” of the 2008 financial crisis -- a notion Wall Street critics like Elizabeth Warren call preposterous. But for hedge funds and the wider financial industry, a kinder approach may not require ditching the rules. Enforcement -- or less of it -- would bring relief too.
“I would expect that the easing-up on Wall Street will occur more around the edges,” said David Tawil, co-founder of Maglan Capital. As Tawil put it, regulators may adopt an approach of “looking the other way, rather than enforcing regulations strictly.”
Whatever the industry’s success in Washington, the Trump administration may not be able to burnish the reputation of American finance among many ordinary people.
“Trump built his base by playing on the fears of working-class Americans that they were being taken advantage of by the ‘elites,”’ said Sol Waksman, the president of BarclayHedge, an alternative investment database. “I do not see how repealing Dodd-Frank and lowering income taxes for the wealthy, which he says he is going to do, ​will improve Wall Street’s image for working-class people."
This article was provided by Bloomberg News.