Lawmakers’ push for more regulation for the financial system has successfully tamed the industry, says Ben White of Politico.
The public and political climate created by the financial crisis, Occupy Wall Street and scandals like LIBOR and the London Whale made it difficult for industry lobbyists to push back against further regulation.
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With the passage of the Dodd-Frank Act and the Volcker rule, investment banks are already changing the way they do business.
“Goldman Sachs, the biggest money machine in Wall Street history, is a shell of its former self,” writes White, while other banks are sticking to money management and, merger advice while getting rid of their riskier business units.
He also says the tens of billions of dollars in regulatory settlements major players such as JP Morgan Chase have had to contend with this year have muted the industry.
Read more here.
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