Impact of the Midterm Elections on the Consumer Financial Services Industry

The 2026 midterm elections have shifted the balance of power in Washington, with Democrats winning control of the House by a substantial margin and the Senate by a narrow margin. Democrats also made significant gains in governorships, state legislatures, and state attorneys general offices.

What will the new political landscape mean for banks, nonbank financial services companies, and their counsel? What can the industry expect during the lame-duck session, the final two years of the Trump Administration, and beyond?

Please join us for a discussion featuring leading industry, political, and legal perspectives on the issues most likely to affect the consumer financial services industry.

Topics will include:

• The lame-duck session: Will the Senate confirm Brian Johnson as CFPB Director? What other legislative or regulatory developments should the industry watch before the new Congress takes office?

• Congress and the CFPB: How will a Democratic-controlled Congress affect the CFPB’s regulatory, supervisory, and enforcement agendas during the final two years of the Trump Administration? What are the prospects for the CFPB Reform Act?

• Federal legislation: What are the prospects for legislation amending the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) to clarify the treatment of out-of-state banks under state usury laws? Will more states exercise their right to opt out of DIDMCA? Could Congress and the President agree on legislation addressing interchange fees, usury or other fee limits, or artificial intelligence?

• Federal agencies and executive action: Will the election results lead to increased federal oversight and investigations of financial services companies? What should the industry expect from the FTC and the prudential banking regulators? What might government action by executive order mean for the industry?

• States and state attorneys general: What will Democratic gains in state governments mean for state and local consumer protection legislation and enforcement—including in states that have traditionally been Republican? Will state attorneys general accelerate their efforts to fill the enforcement void left by a diminished CFPB?

• Litigation and the courts: Will the changing political environment increase private litigation, including class actions and private attorney general actions? Will it improve the prospects for enactment of the FAIR Act, which would ban mandatory arbitration? What impact can the industry expect on the federal and state judiciaries, including the U.S. Supreme Court?

• What should the industry do now? What should banks, nonbank financial services companies, and their counsel anticipate—and how should they prepare for the changing political, regulatory, and litigation environment?

Moderator
Alan Kaplinsky, Senior Counsel and Founding Chair Consumer Financial Services, Ballard Spahr

Guest Speakers
Ian Katz, Managing Director, Capital Alpha Partners
David Pommerehn Executive Vice President, General Counsel, Head of Regulatory Affairs, Consumer Bankers Association

Ballard Spahr Speakers
Joseph J. Schuster, Partner, Consumer Financial Services
John L. Culhane, Jr., Senior Counsel, Consumer Financial Services  

This program is approved for 1.5 CLE credits in CA, NV, NY & PA; and 1.8 NJ.  Uniform Certificates of Attendance will also be provided for the purpose of seeking credit in other jurisdictions.

12:45 PM - 1:00 PM ET | Log in

1:00 - 2:30 PM ET | Program 

Please reach out to marrac@ballardspahr.com with any questions.