Trump vs. Harris: What it Means for Banks and Credit Unions
President Biden’s decision not to seek reelection , and to endorse Vice President Kamala Harris in his stead, sent ripple effects throughout the banking industry on Sunday.
“While it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term,” Biden said in a letter announcing the decision. The move, while not unprecedented, took many by surprise. It has been more than 50 years since a sitting president decided not to run for a second elected term, when Lyndon B. Johnson made the same choice in March 1968 due to pushback from his oversight of the U.S. involvement in the Vietnam War and deteriorating health.
Biden has played a major role in shaping areas of the financial services industry during his time in office, including the Consumer Financial Protection Bureau’s rule on credit card late fees, crypto custody banking, Community Reinvestment Act and more.
American Banker’s Claire Williams writes that despite Harris’ stances on past legislative efforts, it remains uncertain how she would tackle future economic matters if elected as the country’s first female president. Nevertheless, the next president will possess substantial sway over the course of economic and banking policy in the near future.
Some executives say that it’s likely Harris would continue in line with the current administration’s direction on banking regulations.
“In contrast to Trump’s approach, which favored deregulation and a more hands-off approach, Harris’ administration would aim to implement stricter controls and oversight to protect consumers and ensure financial stability,” said Rick Kuci, chief operating officer for the New York-based small business funding fintech FundKite.
Trump was also able to enact significant changes throughout the banking industry during his tenure in the White House. While in office, Trump unwound the Department of Housing and Urban Development’s Affirmatively Furthering Fair Housing rule, instituted temporary stoppages of evictions and foreclosures on HUD-backed properties and passed a regulatory relief bill that included numerous pro-banking reforms.
Jim Nussle, president and chief executive of America’s Credit Unions, said in a statement that his organization remains committed “to [its] advocacy efforts on behalf of credit unions and the members they serve.”
“As the general election cycle unfolds and changes emerge, our engagement with elected officials and candidates will continue to ensure focus on empowering credit unions to better meet the needs of Main Street America,” Nussle said.