U.S. officials are working on finalizing banking rules before President Barack Obama leaves office and turns over regulatory power to President-elect Donald Trump. The Federal Reserve is working on rules governing executive pay, market stability, and what investments Wall Street may hold.
The rule on finance industry bonuses is the last major unfinished piece of the Dodd-Frank Act, which was designed to strengthen regulations and prevent the next global financial crisis. The measure, which would force executives to wait longer to cash out bonuses and would take more than a year to implement, was proposed in April by six agencies including the Federal Reserve and the Securities and Exchange Commission (SEC).
Trump campaigned and vowed anew to dismantle Dodd-Frank once he takes office in January. He intends to focus on the Financial Stability Oversight Council's authority to designate large nonbanks systematically important (SIFIs), which are subject to tougher regulation from the Federal Reserve.
Mary Jo White, Chair of the Securities and Exchange Commission, announced that she will step down in January at the end of President Obama's term. White's term hadn't been scheduled to expire until June 2019. Trump has promised to roll back regulations that White has spent almost four years trying to implement. We'll keep an eye on who Trump might tap as his new Chair, who might be more in line with his deregulation inclination.
IMMIGRATION AND BUSINESS
EFFECT ON BUSINESS
According to analysts, President-elect Donald Trump's immigration policies could have severe consequences for the American economy, especially in the hospitality, construction, manufacturing, and retail industries. The new research shows the biggest risks to the retail industry would be the loss of millions of consumers and the impact on the labor force. The resulting labor shortage could push up workers' wages and the cost of goods.
Over the long term, there could be a decline in manufacturing output of $74 billion. Overall, some reportsproject the private-sector output would decline between roughly $380 billion and $620 billion. Trump is still finalizing his transition team to ensure a smooth and professional transition when he takes office on January 20, 2017. During the transition, the president-elect's transition team will recruit, vet, and hire 4,000 political appointees to help him run the federal government. We will keep watching this issue in the coming months to see how it could affect your business.
MAKING OUR WAY AROUND THE COUNTRY
Four states - Arizona, Colorado, Maine, and Washington - passed ballot measures that will raise the minimum wage in those states. Hourly workers in Arizona, Colorado, and Maine will see the minimum wage rise to $12 an hour by 2020, while Washington's minimum wage will increase to $13.50 by 2020.
The Michigan Legislature overwhelmingly approved a three-bill package that would allow companies to roll out autonomous cars on Michigan's roads without drivers. The proposed laws would allow the public to buy and use fully driverless cars whenever they are available. It would also allow ride-sharing services without drivers to be operated by auto manufacturers or ride-hailing services such as Lyft or Uber. The legislature was sent to Gov. Rick Snyder, who is expected to sign it.
KIDS' CHANCE AWARENESS WEEK
This week is Kids' Chance Awareness Week. Kids' Chance is an organization that provides scholarships to children affected by a workplace injury by helping them pursue and achieve their educational goals. Since its founding in 1988, Kids' Chance has given more than $16 million in scholarships. Great work.