The banking industry has welcomed looser regulations put in place since President Donald Trump returned to office last year. But some unwelcome changes for businesses could be in store depending on the outcome of next week’s election. A top lobbyist for Charlotte-based Bank of America recently outlined what could happen if Democrats win control of at least one chamber of Congress. For more, Ashley Fahey of The Charlotte Ledger joined WFAE’s Marshall Terry for our BizWorthy segment.
Marshall Terry: First, what are some of the regulatory changes since Trump's return that the banking industry likes?
Ashley Fahey: Regulators have proposed reducing capital requirements for the larger banks, which, of course, many of those are here in Charlotte. They've streamlined the process for approving bank mergers, and they've also dialed back some consumer protection enforcement. Trump also signed legislation that overturned a rule that would have capped overdraft fees at large banks.
Terry: So BofA lobbyist Jim Carlisle recently spoke to the Charlotte Economics Club about changes that could be coming if Democrats win at least one chamber of Congress. What did he say?
Fahey: He basically indicated that there might just be more scrutiny on the banking industry. Congressional committees may investigate the Trump administration. Things like credit card interest rate caps have been talked about. There may be other proposals that come up that we don't know about that could maybe restrict some things on corporations and maybe put on additional regulatory measures that big business doesn't tend to like.
Terry: We saw the Brazilian stock market crash hard after the left-leaning presidential candidate won there last week. I'm guessing this wouldn't be as dramatic as that though.
Fahey: No, Marshall. Obviously, I don't have a crystal ball, but I don't foresee that happening, especially if Democrats just win one chamber. I think it would be a much more sort of modest reaction if that does happen.
Terry: Let’s get a quick update on the ongoing saga involving Discovery Place and the millions of dollars it owes Mecklenburg County related to the nature museum. Quickly remind us why Discovery Place owes the county this money and then tell us what the latest is?
Fahey: Basically, the Mecklenburg County Board of Commissioners in late 2023 agreed to give Discovery Place an additional $10 million amid what the museum said was escalating construction costs. It's a county-owned facility. That left essentially $14.7 million that the county basically said, ‘OK, we'll hold on to this and you have to pay it 180 days after construction is substantially complete.’ Well, Discovery Place has said, ‘We cannot pay the lump sum on that’ and have proposed paying it off over a significant number of years. They have paid about $100,000 in reimbursements, so the total is now $14.6 million. We learned last week that the county has hired an auditor to help assess Discovery Place's financials. I think county commissioners just want a little bit more understanding of their financial picture.
Terry: The county said it was hoping to make a decision about what to do by the end of October, which is here. But I guess that’s not quite happening?
Fahey: Yeah, it sounds like this auditor might take until mid-November at least for them to complete their work. I would say we're going to wait to see what the audit results are, and I think the commissioners might use that to help them decide what to do.
Terry: Finally, 200 jobs are coming to Charlotte after The Clearing House Payments Company announced it’s opening an office in the city. And we beat out Atlanta, right?
Fahey: That's right. Reasons were quality of life, the connectivity to New York, and workforce — which, of course, are some of the reasons that we frequently hear assigned to why companies tend to pick Charlotte. The Clearing House Payments Company — they're not a bank per se. They are a banking association and private sector's payment company, so they operate electronic payment networks that are used by banks to transfer money. I think it's just another example of how not only are we seeing traditional banks putting in operations here, but certainly organizations that facilitate and help transactions with banks are interested in putting a foothold in Charlotte.
Support for BizWorthy comes from the law office of Robertson & Associates and the YMCA of Greater Charlotte.
