Impact of Trump's Election on Wall Street

The election of Donald Trump has elicited an optimistic response from Wall Street, with significant jumps in bank stocks and a renewed sense of excitement regarding dealmaking. The expectation is that stringent regulations imposed during the Biden administration will be relaxed, particularly concerning capital requirements and the oversight from the SEC. Banks are hopeful that Trump's administration will shift away from proposals like the Basel III endgame, which necessitated higher capital reserves, thereby facilitating easier operations and encouraging more mergers and acquisitions. Additionally, anticipated tax cuts and potential tariff adjustments could stimulate investment, although concerns about inflation from tariffs remain a significant consideration.