Wall Street banks brace for ‘political theater’ as Democrats return to power—but few expect major change anytime soon

The giant blue wave that swept Congress this week has left Democrats in a celebratory mood. The vibe on Wall Street, however, is less upbeat as lawmakers like Sen. Elizabeth Warren (D-MA), who have expressed pointed hostility towards the financial industry, prepare to wield oversight power. This would seem to bode ill for behemoths like JPMorgan, Goldman Sachs and Morgan Stanley. But the banks can take comfort in the view of analysts and legal experts, who say that the fallout from the mid-term election is likely to amount to little more than “political theater” and public shaming—at least for now.

For Wall Street, the first signs of the new political order are already appearing. Just days after the election, CNBC reported that Senate Democrats are gearing up to investigate JPMorgan for the bank’s relationship with late sex offender Jeffrey Epstein, citing a source familiar with the matter. JPMorgan declined Fortune’s request for comment on the matter.

Before that, on the same evening that polls closed, Sen. Ron Wyden, an Oregon Democrat who is expected to chair the Senate Finance Committee, posted a simple message on X: “Subpoenas.”

It was a one-word preview of the scrutiny Wall Street could face when Democrats take control early next........

© Fortune