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Banking industry seeks rollback of proposed Basel III

Endgame

rules

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Financial industry aims to preserve lower corporate tax

rates

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Trump's team more organized in outreach to industry groups

than

in first term

By Pete Schroeder and Chris Prentice

WASHINGTON/NEW YORK, Nov 8 (Reuters) - The banking and

finance industries are rapidly drawing up wish lists for lighter

regulation under President Donald Trump's incoming

administration as Wall Street sees a window of opportunity to

influence policy.

Numerous financial trade groups are working on detailed lists to

hand to Trump's transition team, according to four industry

sources who asked not to be identified.

That follows weeks of outreach from Trump's team to industry

groups, lawyers and lobbyists in preparing for a potential White

House return in 2025, according to three sources familiar with

the effort. Some of the trade groups want to deliver the wish

lists urgently, two of the sources said.

The speed at which the transition team and industry are

moving to identify potential regulatory relief underscores how

aggressively the new administration could move.

Following Trump's resounding victory on Tuesday, that effort has

gained momentum, with Trump allies asking industry players to

detail what governmental issues they have and how they should be

fixed.

The Trump transition team did not respond to a request for

comment.

BANK INDUSTRY REQUESTS

The banking industry is keen to see the next administration step

back on numerous contentious rule-writing projects, most notably

proposed Basel III Endgame rules, that would require big banks

to hold far more capital to reduce risk. Bank groups have

pressed regulators for months to drastically curtail those plans

and expect the next administration to start fresh or revamp the

current product, according to three of the industry sources.

Banks are also likely to seek relief from fair-lending rules

that they are battling in court, easier-to-navigate annual

big-bank stress tests and a lighter evaluation of bank mergers,

said three of the sources.

Banks and the broader financial industry will closely monitor an

effort to write tax legislation in Congress, as many provisions

of a 2017 tax law ushered through by Trump in his first term are

set to expire. Among top industry priorities will be preserving

lower corporate tax rates.

The private fund industry is focused on easing an aggressive

agenda from the Securities and Exchange Commission, as well as

preserving the tax treatment of carried interest so it continues

to be taxed as capital gains and not ordinary income, according

to one person familiar with the matter.

"The reforms adopted over the last three-and-a-half years

enhance efficiency, competition, and investor protection in the

U.S. capital markets," a spokesperson said. "The agency's

enforcement actions have held wrongdoers accountable and

returned billions to harmed investors."

The four industry sources said outreach from Trump's team has

already been more robust and detailed than in 2016, and suggests

a more organized and efficient effort to build out the new

administration. In addition to seeking policy recommendations,

industry representatives say they also have been asked for input

on potential high-level appointees to lead bank and financial

regulators.

However, industry sources noted it could still take several

weeks or months after Trump is sworn in on Jan. 20 to get some

new regulatory chiefs installed, as the Senate is likely to

consider higher-level cabinet picks first, two of the people

said.