Another essential part of the Trump energy agenda is to reduce regulation, which will allow energy companies to reduce their costs, improving margins. In fact, shares of energy companies have already been on the rise, with shares of Peabody Energy (BTUUQ) increasing by more than 70 percent, and shares of Westmoreland Coal (WLB) increasing by about 17 percent following the election.
With many big banks facing tighter regulations at the hands of the Democrats, a Republican government may allow them to breathe easier. The proposed regulations, the most recent of which would limit the ability of large banks to invest in commodities and private equity, had the potential to cut into bank profits. Trump and his fellow Republicans are not expected to give the banking industry the same wringing they would have faced under Hillary and other progressive lawmakers.
The sector can now step off of its defensive position, and begin to look for assistance from Trump in other areas, such as dismantling the Dodd-Frank Wall Street Reform Act, a move that Trump promised during his campaign. The Act, passed in 2010, has cost banks and financial institutions millions, if not billions, of dollars. The subsequent Durbin Amendment, a law that reduced the fees retailers paid for debit card transactions, alone was estimated to have cost Bank of America $1.29 billion, JPMorgan Chase & Co $959.2 million, Wells Fargo $769.2 million and Citigroup $573.2 million. These banks have sought to recoup these costs in other ways, costing consumers an estimated $4 billion each year in increased banking fees, and reductions in reward programs and card perks.