Wall Street banks are bracing for heightened scrutiny after Democrats won control of Congress in Tuesday's midterm elections, with executives and analysts predicting lawmakers will investigate cost-of-living issues and summon bank chiefs to testify, Reuters reported.
Democrats are already preparing to investigate business dealings by President Donald Trump and members of his administration. Attorneys and advisers said the industry is working out how to handle a Congress that will hand Democrats investigative staffs and subpoena power when they take control of both chambers in January.
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee and a longtime Wall Street critic, is seen as the frontrunner to chair the banking panel. Representative Maxine Waters, the top Democrat on the House Financial Services Committee, is the leading contender to chair that panel.
Attorneys and analysts widely expect Democrats to probe consumer finance practices that can raise costs for customers, including junk fees, predatory lending and mortgages.
Democrats will hold at least 54 Senate seats and gained at least 30 House seats, according to Reuters, giving them the majorities — and the committee gavels — to set the oversight agenda from January.
