2010 Election Results & Impact on Banking
The anticipated GOP surge played out even larger than most pundits’ expectations on the national level. Banking benefited from voters’ actions both Federally and in the Statehouse, as both split control of the legislative chambers. In the U.S. Senate and Colorado Senate, the Democrats’ have retained control, but with narrowed margins. In the U.S. House and Colorado House the GOP has gained control.
A split government usually means political gridlock and protection from fringe proposals. It also means we’ll most likely see protection from major burdens being imposed on business (e.g. new regulations, taxes).
The reality is that unaffiliated voters repudiated Democrats’ governance just as they shunned Republicans two years ago. What they’re really rejecting is governance by either party when measures are adopted that aren’t bipartisan. Voters seem to want a centrist, moderate government and that normally requires a government split between the parties.
The election results aren’t conducive to rolling back the Dodd/Frank Act, but no more bad policies can get through a split government. CBA does expect a technical cleanup bill to move forward in early 2011, and hopefully Congress will address some of the unintended consequences that a 2300 plus page bill produces.
For specific questions or inquiries don’t hesitate to contact CBA.