Regulation in the financial markets will continue and may even accelerate in the U.S. in the next few years. Elizabeth Warren has been elected to the Senate from Massachusetts and will most probably join the Senate Banking Committee. Warren is a former Harvard professor who is a fierce pro-consumer advocate.
With the resignation of Mary Schapiro as Chairman of the Securities and Exchange Commission, President Obama has named a current member of the Commission to take her place. Elisse Walter is a Bush appointee and a Yale and Harvard educated lawyer. She appears to share Shapiro’s and the President’s view that stricter regulation of the financial industry is critical.
Walter’s first job as Chairman will be to complete the rules that form the Dodd-Frank financial industry regulation.
Prosecution of financial industry personnel and companies continues at a pace not seen in the Bush years. Look for more insider trading, financial fraud and Foreign Corrupt Practices Act prosecutions.