what will dodd-frank repeal mean for investment bank recruitment?

posted about 2 years ago


Author: Mike La Rosa | Director, Americas 

Following a contentious start to his presidency, and a range of executive orders being signed into effect within the first 100 days of his tenure, President Trump is now focusing on repealing Obama’s 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. 

In a move which is likely to see many benefits for high-level bankers, and which has been seen by many as a travesty for the consumers the Act was created to protect, how will investment banking recruitment fare?

What Did Dodd-Frank Do?

The 2010 Dodd-Frank Act was introduced with the aim of regulating the financial services. It was an attempt to combat the effects of the 2007/2008 financial crisis, and it was hoped it would prevent any repeat of the events that led there. 

The reform created the Financial Stability Oversight Council and the Consumer Financial Protection Bureau, who oversee the analysis of risks taken by large investment banks, and protect the interests of consumers respectively. This helped to stabilize the economy, though it was met with disapproval and is still contested by investment banking influencers. They feel that the regulations restrict economic growth, and that they have had an effect on the economy as whole by restricting the banks' ability to approve loan requests.

How Has Investment Banking Recruitment Been Affected Since 2010?

As the economy has stabilized and begun to recover from the crisis of 2007/2008, opportunities in a variety of roles have opened within investment banking. Technology has also influenced the way investment banks recruit new employees; a range of positions have opened up as innovation brings various changes within the investment banking sector.

What Does the Future of Investment Banking Recruitment Look Like?

With many investment banks stating that they will react cautiously to any legislative changes, we nevertheless anticipate hiring appetite to ramp up in the short to mid-term across a number of front office and support functions as bank’s seek to unwind a number of their recently implemented programs’.

Companies are becoming less reactionary, and giving new or changed legislation a chance to settle, rather than making instant changes which could create negative effects if improperly executed.

This means that the future of investment banking recruitment looks likely to remain solid, with well thought-out changes that help to keep the market stable, rather than instantaneous changes which can put jobs and the economy at risk. 

Maintaining a Positive Outlook

With many investment banks stating that they will react cautiously to any legislative changes, it seems that the investment banking sector will remain calm and balanced throughout any adjustment periods. This should encourage anyone who believes that looking into investment banking recruitment opportunities is a fruitless endeavor at the moment. In fact, candidates who make the leap, and show faith during the uncertainty of this period, are more likely to be a key part of the adjustments that employers will make to adapt to any legislative changes.

Now is a great time to register your interest in investment banking opportunities, and submit a profile on our site. For investment banks, it's a great time to seek out candidates who are willing to take the journey with your company through changes to the Dodd-Frank legislation. Find your new, dedicated employees, with the help of our experienced recruitment advisors.