Official announcements or policy documents from the Department of Government Efficiency

Trump Team Explores Abolishing FDIC, Overhauling Banking Regulators

Dec 13, 2024, 11:49 AM

The transition team of President-elect Donald Trump is reportedly exploring significant changes to the U.S. banking regulatory framework, according to the Wall Street Journal. The team is considering options to dramatically shrink, consolidate, or even eliminate key bank watchdogs, including the Federal Deposit Insurance Corporation (FDIC). Advisors have inquired about the possibility of abolishing the FDIC and moving deposit insurance responsibilities to the Treasury Department. This move is part of a broader initiative by the newly established Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswami, aiming to overhaul government agencies. The discussions also include integrating the FDIC with other regulatory bodies like the Office of the Comptroller of the Currency (OCC) and the Federal Reserve (FRB), or potentially reducing the regulatory scope of these institutions. The Trump administration's plans could lead to significant personnel cuts and the revival of an executive order known as 'Schedule F' to facilitate the dismissal of federal employees. These changes, if implemented, could reshape the landscape of financial regulation in the U.S. Additionally, the Consumer Financial Protection Bureau (CFPB) might see its regulatory role replaced with consumer education, and there is a plan to encourage staff retirements by making office work more stringent.