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Elizabeth Warren's Win Changes Little: Street Whispers

Given Warren's strong positions on regulation and her commitment to voters to enforce post-crisis banking fixes, she may represent to the public that the industry has been reined in, after reckless trading and lending during the housing boom put the U.S. economy on the brink four years ago.

Instead of focusing on whether Wall Street will return to pre-bust ways, industry watchers may now divert their attention to improving trends for sector's largest players.

There are already signs that in the wake of Dodd Frank, the public has lost interest in the countless stories of CEO mismanagement, fraud and deceit that gripped the financial sector of yesteryear.

Roughly a year after Occupy Wall Street hit New York City streets, the movement petered-out without making headway in reigniting widespread anger at the financial sector.

Meanwhile, tell-all expose's of Wall Street greed like former Goldman Sachs trader Greg Smith's recently released memoir Why I left Goldman Sachs hit bookstores with a poor critical reception. The tell-all was seen as breaking little ground on uncovering Wall Street misdeeds or those at Goldman Sachs - hardcover copies are already discounted 41% on Amazon (Amzn)

Amid signs of a stronger capitalized financial sector with earnings prospects on the mend, it's possible the election of Republican Massachusetts Senator Scott Brown could have reignited anger against the industry. A Republican campaign to repeal Dodd Frank or the perception that Wall Street was on the path back to reckless risk taking could have mired the industry once more in with public outcry.

Still, Warren's election coincides with a still murky outlook for the nation's largest banks. She may very well push for a return to Glass Steagall or the finalization of trading bans like the so-called Volcker Rule.

There's reason to believe the headwinds for banking sector giants have little to do with Warren's Senate election.

Recent legal settlements and disclosures signal worst may still be to come as the world's largest lenders try to settle crisis-era regulatory inquiries. The industry's largest players will also continue to need to raise capital or dispose assets to meet bolstered Federal Reserve capital requirements.

As Election Day results signal a strengthening mandate for Democratic banking sector reforms in the White House and Congress, financial industry insiders might try to view Elizabeth Warren's Senate election as a step forward for large banks, instead of a step backwards. It's likely, C-Suites at the nation's largest lenders are already coming to grips with such a perspective.

See Why Banks and Regulators are Stepping-Up Mortgage Relief in Sandy's Wake

-- Written by Antoine Gara in New York
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