BISA Magazine - Quarter 2, 2017 - 14

FEATURE STORY

Firms like Merrill Lynch and J.P. Morgan
were already "setting the bar higher"
and embracing the fiduciary standard
because of "pressure from the market
place" - not the DOL.

cost alternative in all cases, and the
fiduciary duty rule's lack of flexibility
was troubling.

faster growth - close to 3 percent -
though the Fed may raise interest rates
several times this year, which could put
a damper on things.

Banks should prosper

Rising interest rates should be good
for banks, though, as long as they
don't dull the bull stock market or slow
GDP growth.

Under the Trump administration,
Insana sees a stronger net position for
banks and financial services institutions
generally. Regulations may be loosened,
and banks may enjoy less stringent
capital requirements.
As for the Trump administration's impact upon the economy, Insana noted:
"Trump inherited a fairly stable and accelerating economy." Job growth looks
good, consumer confidence is at record
levels, and the United States should see

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Politically, Trump may be on shakier
ground. Had he stuck to his four initial
stimulative measures: tax reform,
deregulation (up to a point), rebuilding
infrastructure and defense spending
(up to a point), "That could have won
him a second term."
Instead he is threatening a trade war
with China and Mexico, has a battle on

his hands with the repeal of Obamacare, and has to manage a Russian
hacking/influence buying allegation
that does not look like it is going away.
Politically, there has been nothing like
it since the Nixon years, Insana said.

Absorbing the
'robo' technology
Returning to financial services, do
financial advisors have other worries -
above and beyond the DOL's fiduciary
duty rule? For example, robo-advisors?
Most big banks already have a stake
in robo-advisor platforms, Insana said.
Banks will continue to absorb the
technology. At a minimum, it will help
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Table of Contents for the Digital Edition of BISA Magazine - Quarter 2, 2017
