Wall Street's Washington War Chest: Big Banks Ramp Up Lobbying as Policy Battles Intensify

WASHINGTON, Feb 5 (Reuters) – America's largest banks are pouring unprecedented sums into shaping policy in the nation's capital, a Reuters analysis reveals, as a perfect storm of regulatory overhauls, digital asset legislation, and populist political pressures forces the industry into a defensive crouch.

Lobbying spending by banks holding at least $50 billion in assets and their leading trade groups soared by 12% in 2025 to $86.8 million, according to an analysis of OpenSecrets data. This represents the most significant year-on-year increase since 2011, when the industry was grappling with the post-financial crisis rulemaking wave.

The driving forces behind the spending spree are multifaceted. Bank regulators appointed by President Donald Trump are undertaking a sweeping review of capital rules, while Congress is debating landmark legislation that could define the future of digital assets. Simultaneously, the administration has floated populist measures, such as a cap on credit card interest rates, catching some institutions off guard.

"The policy environment is hyper-active, and the stakes couldn't be higher," said Ed Mills, Washington policy analyst at Raymond James. "There's a palpable sense that if you're not at the table, you're on the menu. The agenda is moving with or without you."

A major source of anxiety for traditional banks is the meteoric rise of the cryptocurrency lobby. Digital asset firms boosted their own Washington spending by 66% to $40.6 million last year, securing key policy wins like stablecoin legislation. This has galvanized banking executives, with some advocating for a more confrontational approach to what they see as an existential competitive threat.

"The crypto lobby's success has been a wake-up call," said a veteran financial services lobbyist, speaking on condition of anonymity. "It's no longer just about shaping rules for your own industry; it's about defending your turf from a well-funded, disruptive new player."

In response, banks have aggressively recruited lobbyists with direct lines to the White House. Bank of America hired Bryan Lanza, a former Trump transition official, Morgan Stanley brought on Trump fundraiser Jeffrey Miller, and JPMorgan retained the firm of Susie Wiles, the current White House Chief of Staff.

"A change in administration necessitates a realignment of advocacy teams," said Justin Sayfie, a partner at Ballard Partners. "Sophisticated stakeholders ensure they have voices that can be heard by the new set of decision-makers."

The lobbying surge was particularly pronounced in the final quarter of 2025, driven largely by Wall Street's giants rather than regional banks. State Street's spending skyrocketed 427% year-on-year, followed by Goldman Sachs (134%), BNY Mellon (56%), and Morgan Stanley (41%).

James Ballentine, a former top lobbyist for the American Bankers Association, framed the spending as a necessary insurance policy. "It's about risk mitigation," he said. "When the political winds can shift overnight, you invest to ensure you're not blindsided."

The White House, for its part, pushed back on the notion of industry influence. "The only special interest guiding President Trump's decision-making is the best interest of the American people," said spokesman Kush Desai, adding that the administration would not create "undue handouts or carveouts."

Voices from the Financial District

We asked industry observers for their take on the lobbying surge:

Michael Thorne, Financial Regulatory Consultant (New York): "This is a rational, calculated response to regulatory uncertainty. The banks are simply protecting shareholder value in a climate where the rulebook is being rewritten. The crypto threat is real, and they'd be negligent not to counter it."

David Chen, Portfolio Manager (Boston): "As an investor, I see this expenditure as a cost of doing business. The potential ROI from favorable capital rules or stifling a competitor far outweighs the millions spent on K Street. The fourth-quarter spike tells me they see concrete legislation on the horizon."

Sarah Jennings, Consumer Advocacy Director (Chicago): "It's utterly obscene. While families struggle with high interest rates and fees, these banks are spending nearly $90 million to lobby for weaker rules and kill protections. This isn't 'engagement'; it's a legalized bribe to maintain a status quo that profits them at everyone else's expense. The fact that crypto is now forcing them to spend even more is the only silver lining."

Robert Flynn, Former Congressional Aide (Washington, D.C.): "The data shows a classic Washington arms race. One sector's gains trigger a spending increase from its rivals. It underscores how policy is increasingly forged in a battle of checkbooks, not just ideas. The real question is whether the public interest gets lost in the crossfire."

Reporting by Douglas Gillison in Washington; Editing by Michelle Price and Nick Zieminski