Wall Street banks brace for ‘political theater’ as Democrats return to power—but few expect major change anytime soon

Detailed summary

“They can make life difficult, but they can't necessarily change the overall tenor of where the banks are projected to go,” a Citi analyst said.

The giant blue wave that swept Congress this week has left Democrats in a celebratory mood. The vibe on Wall Street, however, is less upbeat as lawmakers like Sen. Elizabeth Warren (D-MA), who have expressed pointed hostility towards the financial industry, prepare to wield oversight power. This would seem to bode ill for behemoths like JPMorgan, Goldman Sachs and Morgan Stanley.

For Wall Street, the first signs of the new political order are already appearing. Just days after the election, CNBC reported that Senate Democrats are gearing up to investigate JPMorgan for the bank’s relationship with late sex offender Jeffrey Epstein, citing a source familiar with the matter. JPMorgan declined Fortune’s request for comment on the matter.

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