US corporates could face criminal liability risks

Significance

Yellen is widely regarded as a ‘safe pair of hands’; Biden’s other choices for financial regulatory roles are unlikely to infringe the priorities of Democratic donors, including its prominent Wall Street constituency.

Impacts

• Lax financial regulation could cause popular discontent.
• The SEC and Justice Department may return to the Bush-era position of pursuing C-suite executives and corporations.
• The CFPB will focus on student debt and payday lender issues but needs itself to be revitalised.