WASHINGTON—Count Michael Fryzel as among those who believe the results of Tuesday’s elections could lead to the resignation of CFPB Director Richard Cordray and a reduction in the regulatory burden facing financial institutions.
With the election of Donald Trump as U.S. president and Republicans taking control of both the House and the Senate, many in credit unions and other industries have been offering forecasts on what the change in Washington could mean.
“The election of Donald Trump should have the financial services industry and the entire business community understanding there will be a new and different view of the role of government,” said Fryzel, a Republican. “Not to say that there will be a disregard for safety and soundness or fair play and common sense, but the burden of excessive government and unnecessary regulation will end.”
Fryzel said the business world can expect a careful review of existing and proposed regulations from the new political regime.
“They will see the elimination of regulations which adversely impact growth and the ability to serve the needs of the people. This will be accomplished while still maintaining a system that is safe and protective of the American citizen,” said Fryzel.
Fryzel predicts that the CFPB will change dramatically in leadership, structure and mission.
“Legislation has been proposed to change the structure of the CFPB. I anticipate that will move forward,” said Fryzel. “In addition, I would hope that the current director, accepting the fact that the new president is entitled to put in his own team in place to run the government, would resign his position on January 20, 2017. Once that takes place, I am confident President Trump will then appoint an individual to oversee a complete review of what the agency has done since its inception, what changes need be made to make it more efficient and responsive and conduct a comprehensive review on what regulations that are in effect or proposed that need to be changed or eliminated.”
NCUA will see a change in how it regulates and examines, as it will have a new Chairman and at least two new board members next year, according to Fryzel.
“Although an independent agency, its appointed board will follow the agenda of the president-elect,” he said. “The fact that Republicans will control both houses of Congress is an added bonus for those looking for a return to the Reagan era of government by and for the people.”