Trump deregulation: the payoff is yet to show
SPY•The benefits of President Donald Trump’s deregulation drive have yet to show clearly in corporate costs or bank capital ratios, though 265 deals received accelerated antitrust clearance in 2025. A Jefferies strategist said faster merger clearance is marginally positive for equities, particularly investment banking names.
1. Costs remain largely unchanged
The administration has cut roughly $1.6 trillion in regulatory costs, according to Jefferies strategist Aniket Shah, reversing Biden-era rules that added $1.9 trillion. Yet selling, general and administrative expenses as a share of sales—a proxy Jefferies uses for regulatory burden—were largely unchanged or higher across most sectors through the third quarter.
2. Deal clearance accelerates
Five of the eight US global systemically important banks have increased their capital ratios despite reforms to the enhanced supplementary leverage ratio. Jefferies said the test will come when regulators finalize pending Basel III endgame and G-SIB surcharge rules. Antitrust agencies reinstated early termination of merger reviews in February 2025, and 265 deals received accelerated clearance that year. Shah said financials and utilities stand to benefit most from SEC and EPA proposals, if they are finalized largely as written.
