Official announcements from the U.S. government or legislative records

Trump Advisers Seek to Eliminate FDIC and CFPB, Reshape Bank Regulation

Dec 13, 2024, 12:39 PM

Donald Trump's transition team is exploring options to significantly reduce, merge, or eliminate top bank regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB), according to reports from the Wall Street Journal. Advisers have discussed abolishing the FDIC and moving deposit insurance responsibilities to the Treasury Department. They have also asked potential nominees whether the president-elect could eliminate the FDIC. Former FDIC Chair Sheila Bair expressed skepticism, noting the FDIC's perfect record of protecting insured deposits for over 90 years. Industry experts express concern that eliminating the FDIC and CFPB could undermine consumer confidence and stability in the banking system.