Editor’s note: An earlier version of this post ran in May. It has been updated with the news about Warren’s exploratory committee.
No matter how far Sen. Elizabeth Warren, D-Mass., goes in the 2020 presidential elections, one thing is for certain: She’s going to be a key influence in the race and will help shine a bright spotlight on financial services issues.
Warren, who
But earlier polls had shown her
Given her strong showing with the party’s base, Warren is likely to have considerable sway on the party when it comes to financial services, just as she did in 2016. The Democratic platform that year, for example, adopted
Although it is likely to frustrate many in the banking industry, this means that the Democratic Party is almost certain to remain to the left on issues surrounding banking. Analysts have noted that Warren has been central to keeping financial services policy top of mind for politicians and voters alike more than a decade after the 2008 crisis.
“Her committee membership and her deep understanding from researching the industry is probably the thing that keeps it as more of a top issue than any other force out there,” said Edward Mills, a policy analyst at Raymond James.
Her influence was already on display in the spring with the Senate’s passage of a bill to overhaul parts of the Dodd-Frank Act. While a number of moderate Democrats backed the legislation, Warren remained solidly against it — and so did virtually every one of the party’s 2020 hopefuls, including Sens. Kamala Harris of California, Cory Booker of New Jersey and Kirsten Gillibrand of New York. That was far from a coincidence. Warren’s opposition made it politically untenable for a Democratic presidential hopeful to defect on the bill. That effect is likely to increase as the race for 2020 heats up. What’s more, her populist tone is shared by other potential 2020 candidates, such as
As a vigorous critic of some of the largest banks and an opponent of the Trump administration’s plans to deregulate the industry, Warren has remained an outspoken voice on the progressive left during the first two years of President Trump’s term. Polling suggests that
The bad news for banks is that even if Warren’s candidacy fizzles out and she gives way to a more moderate Democrat or another progressive, the financial regulatory issues that she trumpets will be front and center in the next fight for the White House.
Bankshot is American Banker’s column for real-time analysis of today's news.