In Davos, Switzerland, on Jan 21, JPMorgan Chase & Co bankers worked overnight in a "war room" to assess the aftermath of Trump's return to the White House. Trump swiftly revoked around 80 executive orders by former President Joe Biden, causing global markets to prepare for volatility.
Mary Callahan Erdoes, head of asset and wealth management at JPMorgan, mentioned during a panel at the World Economic Forum in Davos, "The last 24 hours are showing there's going to be a lot of changes we all have to digest." She highlighted the ongoing analysis and evaluation of the changes, stating, "At JPMorgan, we have a war room set up to analyze and evaluate each and every one of these."
Brokers noted a quick fluctuation in global asset trading tied to Trump's "America First" policies following his recent actions. Erdoes expressed optimism that the U.S. government's decisions would maintain a competitive environment for the country.
Amidst predictions of disrupted global trade flows and potential tariffs, Standard Chartered CEO Bill Winters anticipated challenges ahead. Winters also remarked on the impact of past actions on the relationship between China and the U.S., emphasizing the potential for globally-focused banks to benefit from the resulting disruptions.
Regarding banking regulations, concerns were raised about stifling regulations hindering global growth efforts. Various bank executives, including Winters and BNY CEO Robin Vince, emphasized the need for supportive regulations aligned with growth objectives.
The Bank of England's postponement of stricter bank capital rules until January 2027 and the European Union's consideration of its options underscore the complexity of regulatory environments post-Trump. Suggestions for reevaluating regulations, such as Basel 3.1, were proposed to ensure regulations effectively support growth ambitions.
Innovation and economic progress discussions included calls from Santander executive chair Ana Botin for Europe to accelerate regulatory reforms to keep pace with the United States' objectives, emphasizing the importance of proactive measures to drive economic prosperity.