Executives from Bank of America and JPMorgan Chase discuss the prospect of a potential second term for Donald Trump
In the evolving world of bank regulation, recent developments have brought significant changes to the Consumer Financial Protection Bureau (CFPB), Federal Reserve stress testing, the Basel III framework, and the Office of the Comptroller of the Currency (OCC).
Consumer Financial Protection Bureau (CFPB):
Under the current leadership, the CFPB is adopting a more focused enforcement approach, prioritizing protection of servicemembers and addressing concrete consumer fraud and damages, particularly in mortgages and traditional consumer protection statutes. However, the agency is deprioritizing oversight of student loans, medical debt, peer-to-peer platforms, and digital payments. Enforcement intensity appears lower than in prior years, but significant monetary penalties and consumer redress requirements continue, as demonstrated by a recent $4 million civil penalty and $5 million for consumer redress in its first settlement under Acting Director Vought.
The CFPB is also rescinding or revising previous expansive rules, reflecting a pullback consistent with the Trump administration's regulatory curtailment strategies aimed at reducing the CFPB's scope and authority. Legislative debates continue, with proposals ranging from restructuring to defunding or even eliminating the CFPBP.
Federal Reserve Stress Testing:
While no recent changes in the Fed's stress testing process have been explicitly detailed, the general regulatory environment and leadership changes suggest that stress testing, a key tool used by the Federal Reserve to assess bank resilience, might be subject to recalibration reflecting a broader deregulatory trend.
Basel III Rule:
No explicit mention has been made about recent status or revisions to the Basel III Basel Framework regulations during this timeframe. The rule, which sets international banking capital and liquidity standards, remains a fundamental pillar in bank regulation globally.
Office of the Comptroller of the Currency (OCC):
The search results do not explicitly detail new appointments at the OCC in 2025, but it is likely that regulatory philosophy at the OCC is also evolving, possibly towards easing regulatory burdens on banks. The White House has nominated Jonathan Gould, an agency veteran, to lead the OCC.
Industry Perspectives:
Bank of America CEO Brian Moynihan expressed a desire for regulatory stability, stating that constant changes are difficult for companies to manage. JPMorgan Chase Chief Operating Officer Jennifer Piepszak stated that the new Trump administration is taking all the attention. The industry would like a Basel III rule to be finalized for certainty around balance sheet management. KeyBank CEO Chris Gorman noted that changes at federal agencies may take time due to the career nature of the staff working there.
Wells Fargo CFO Mike Santomassimo noted a change in the regulatory tone, while JPMorgan CFO Jeremy Barnum described the current situation as a "shock and awe moment." Bank of America CEO Brian Moynihan referred to stop-work orders issued by the CFPB, and Otting, who served as head of the OCC during the first Trump administration, expects the new White House to want banks active in the market.
Notable Cases:
In December, the Consumer Financial Protection Bureau (CFPB) sued Bank of America over the Zelle payments platform.
In summary, bank regulation in mid-2025 is characterized by a strategic scaling back at the CFPB with a narrowed enforcement focus, ongoing congressional debates about its structure and funding, and an uncertain but potentially cautious approach to key regulatory tools like the Federal Reserve’s stress tests. The Basel III framework remains a stable but uneventful element with no reported fundamental changes. Leadership changes at the OCC may further influence regulatory approaches but need further detail to assess fully.
- The Consumer Financial Protection Bureau (CFPB), under Acting Director Vought, is shifting its focus in enforcement, prioritizing protection of servicemembers and addressing concrete consumer fraud in mortgages, while deprioritizing oversight of student loans, medical debt, peer-to-peer platforms, and digital payments.
- The Federal Reserve, with no explicit changes to its stress testing process detailed, might be considering a recalibration of stress testing, reflecting a broader deregulatory trend and possibly driving a shift in the assessment of bank resilience.
