This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Elizabeth Warren's Win Changes Little: Street Whispers

Stocks in this article: JPM BAC C GS WFC BRK.A

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

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,908.82 +104.02 0.58%
S&P 500 2,070.90 +0.25 0.01%
NASDAQ 4,770.5190 +5.1390 0.11%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs