Democratic control “hurts the direction of travel in the bank space,” TD Securities analysts said in a note Wednesday.

With Democrats winning control of Congress on Tuesday, “the run of favorable legislation for the banks has likely come to a close,” TD Securities analysts said.

Democratic control “hurts the direction of travel in the bank space,” TD Securities analysts led by Scott Siefers said in a note Wednesday, as their “policy aspirations largely run contrary to the business- and bank-friendly policies” advanced by the Trump administration.

However, practical implications could be limited in the near term as President Donald Trump maintains veto power, Siefers said.

Abrupt shifts in supervisory priorities are unlikely, Citi analysts led by Benjamin Gerlinger said in a note Wednesday, as “key financial regulatory bodies are expected to maintain stable leadership.”

However, Democratic committee heads “will likely lead to more visible hearings and inquiries into areas such as consumer protection, lending standards, and climate-related financial disclosures,” Gerlinger said.

Joann Needleman, head of the financial services regulatory and compliance practice at law firm Clark Hill, also projects an uptick in hearings, but warned against them as “political theater.”

“The electorate has said we need you to get things done, and political theater doesn't necessarily get stuff done,” she said. More hearings are “great and fine,” she said in an interview Wednesday, “but you better do something about gas prices and the economy because that's what they clearly voted you in there to do.”

The House Financial Services Committee is primed for changes in January as multiple sitting members lost to opponents – and others were elected to new positions.

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