NY Dept of Financial Services Aims to Increase Financial Regulatory Activities as Many Expect Rollbacks Once Trump Returns to Office
The New York Department of Financial Services (NYDFS) plans to place more scrutiny on banks, insurers, and cryptocurrency companies as NYDFS head Adrienne Harris said that the Trump Administration’s expected scaling back of federal regulations would raise the amount of consumer protection cases that they may bring on the enforcement side.
“We’re going to keep focusing on getting money back for consumers,” Harris told the Financial Times. The NYDFS has added hundreds of new employees in recent years. “If there are new gaps that emerge because we don’t have a partner then we’ll work to fill those gaps as appropriate,” she added.
The NYDFS already licenses the big banks headquartered in New York City, and Harris said she would ask the state governor for additional power to push back on the relaxation of federal regulations, which would mark a radical shift after a year of steady rules and regulations on everything from credit card late fees to data sharing.
Trump campaigned on the concept of bringing in the “most aggressive regulatory reduction” in American history. Trump supporters have argued for eliminating entire federal agencies, such as the Consumer Financial Protection Bureau (CFPB), which has been a longstanding target for Republicans.
The Trump team has also discussed the idea of scaling back or eliminating the Federal Deposit Insurance Corp. (FDIC), which was created to protect consumers from banking failures. In November, Trump named crypto supporter Paul Atkins as chair of the Securities and Exchange Commission (SEC) to pursue “common sense” regulation.
“In the meantime, however, the underlying issues are still there, and key among them will be examinations of the risks and rewards inherent in bank-FinTech partnerships, cybersecurity, capital requirements and innovation,” a PYMNTS report read.
