Technology talent and quantitative expertise shifting on regulatory landscape
Almost immediately after taking office, the Trump administration began making significant regulatory reform part of its agenda, and it is widely expected to do more in the coming months. Amongst these reforms, changes to Dodd-Frank are certainly on the list. As the rules change, so will employer’s talent needs.
Few in the industry believe there will be a wholesale repeal of Dodd-Frank or complete lack of enforcement, but the banks are anticipating some of the burdens will be lifted. Certain aspects of the law may be foremost on the chopping block, for example, the “living wills” the banks are required to submit as they are more frequently viewed as having less real value in protecting the interests of the consumers.
That said, stress testing and the core elements of CCAR are likely to remain, as it would be too politically risky for Republican’s to gut the thing altogether. The optics of that could be devastating in the 2018 mid-terms, and the word from most of our banking clients is that they see the value in CCAR anyway. For this reason, hiring for CCAR professionals will likely remain strong, especially in terms of consultants.
It is interesting to note that Trump has recently expressed an interest in resurrecting Glass–Steagall Act, or at least a modified version of it. This type of “break up the banks” legislation might drastically change the recruiting need of the banks, requiring each separate entity to hire heavily in areas like technology, as businesses will no longer have the luxury of shared services. However, there are mixed messages regarding this.
In both instances, Oakwood is prepared to continue to support our clients in finding the risk, technology and quantitative expertise they need within a shifting regulatory landscape.