Webinar
How Will the U.S. Election Results Impact Your Financial Services Businesses and Clients?
Webinar
November 15, 2024
On November 15, Winston hosted a webinar titled “Post-Election Financial Services Forum” discussing the impact of the U.S. election results on the financial services sector for 2025 and beyond. This virtual roundtable discussion—featuring more than a dozen Winston partners, including moderators Amanda Groves and George Mastoris—provided insights and potential implications to various financial services areas and regions. Read our takeaways below.
Government Investigations & Enforcement
- Jack Knight, Chair, Financial Services Litigation Practice, Investigation & Enforcement Practice
Takeaways
- Changes at the Department of Justice Under President-elect Trump may include:
- complete overhaul possible;
- personnel changes; and priority changes.
Regulatory
- Caitlin Mandel, Government Investigations, Enforcement & Compliance partner
Takeaways
- CFPB Enforcement Trends and Priorities:
- Enforcement priorities likely to focus on smaller entities, concrete consumer harm.
- Less focus on discrimination or other “stretch” theories.
- SEC Enforcement Trends and Priorities:
- Enforcement actions likely to be less creative and less aggressive. Less focus on:
- Crypto;
- ESG; and
- regulatory violations versus clear investor harm/fraud.
- Enforcement actions likely to be less creative and less aggressive. Less focus on:
Investment Management
- Basil Godellas, Co-Chair, Financial Services Practice
Takeaways
- Less Rulemaking: The Trump SEC is expected to reduce major regulatory actions, favoring a pro-business approach.
- Executive Orders: New executive orders may further limit or repeal regulations, continuing Trump’s previous policies.
- Rule Impact Shift: Biden’s SEC rules had greater compliance costs; Trump’s second term may ease regulatory burdens.
- Pending Rules Uncertain: The future of proposed rules concerning cybersecurity and ESG remains unclear under new leadership.
Securities Litigation
- John Schreiber, Chair, Los Angeles Litigation Practice
- Kerry Donovan, Securities Litigation Partner
Takeaways
- Less Litigation: Reduced regulatory enforcement under Trump could lower shareholder lawsuits tied to investigations.
- Pro-Business SEC: A company-friendly SEC may reduce proxy disputes and activism-related litigation.
- Proxy Rules Changes: Proxy advisory firm regulations and universal proxy cards might face revisions.
- Shifting Litigation Focus: Plaintiffs may target accounting issues if regulatory cases decline.
Artificial Intelligence
- Bobby Malhotra, eDiscovery & Information Governance Practice partner
Takeaways
- AI Regulation Shift: Federal AI oversight may ease, favoring voluntary guidelines and innovation.
- Fragmented Laws: Deregulation could lead to complex state-specific AI rules.
- Trade Impact: Tariffs and export controls may disrupt AI technology access.
- Investment Boost: Deregulation may spur AI startup growth.
Bank Regulatory
- Carl Fornaris, Co-Chair, Financial Services Practice
Takeaways
- Legislative Priorities on the Hill and the New Administration.
- Changes to the Federal Reserve, CFPB, OCC, and FDIC.
- SEC’s “Politicized Approach” to Digital Assets.
- Discouraging the Use of ESG Standards in Financial Markets.
Private Investment Funds
- Danielle Williams, Co-Chair, Intellectual Property Practice; Managing Partner, Charlotte
Takeaways
- USPTO Leadership Change: Deputy Director Derek Brent will serve as acting director starting December, possibly until mid-2026, when a new director is expected.
- Alignment with Trump Priorities: USPTO’s current goals, like driving U.S. innovation and protecting IP, align with Trump administration priorities.
- Future Uncertainty: Leadership changes in 2026 may shift priorities, but optimism remains for continued support of the innovation economy.
International Trade
- Cari Stinebower, Chair, International Trade Practice, CFIUS, Customs, Export Controls & Sanctions Practice
Takeaways
- Tariffs, Mexico, China, and the Trump Reciprocal Trade Act.
- As an alternative to the Chips Act, the new administration has indicated it will deliver its manufacturing renaissance via lower taxes, regulations, and tariffs of 60% on imports from China and 10% to 20 % on imports from elsewhere.
- Sanctions Focus: Iran and a return to the Maximum Pressure Campaign.
European Union
- Sara Susnjar, Regulatory Partner
Takeaways
Central Banking: Tariffs and federal interference risk global financial instability.
- Climate: U.S. Paris Agreement withdrawal threatens EU’s climate goals and global cooperation.
- Defense: EU faces reduced U.S. support for defense and security.
- Tech: U.S.-EU Trade and Technology Council may dissolve.
United Kingdom
- Rebecca Jack, Transactional Associate
Takeaways
- Trade Impact: Trump’s tariffs may cost the UK £22B in exports, spurring renewed UK-U.S. trade talks, including UK requests for greater financial market access.
- Deregulation Push: Potential U.S. deregulation could drive calls to loosen UK market rules to stay globally competitive.
- Investment Concerns: Because the United States is the UK’s largest inward investor, U.S. shifts in investment priorities could significantly affect key UK sectors, including financial services.