The transition team of the president-elect of the United States, Donald Trump, has begun to explore how to significantly reduce or even eliminate the main banking regulators, the economic newspaper The Wall Street Journal (WSJ) reported exclusively.
In Recent interviews with potential candidates to direct banking regulatory agencies, said advisors and members of his newly created Department of Government Efficiency, which will be co-led by magnate Elon Musk, asked for example Whether the Federal Deposit Insurance Corporation could be abolished (FDIC, in English).
This agency, created in 1933 in response to thousands of bank failures occurred in the 1920s and early 1930s, secures trillions of dollars in deposits covering practically all banks and savings associations in the country.
Also on the table is the possibility of the FDIC and the Office of the Comptroller of the Currency (OCC), which regulates and supervises all national banks and federal savings unions, being “absorbed” by the Treasury Department.
The WSJ recalled that any proposal to eliminate the FDIC or other agencies would require going through Congress. Although other leaders have reorganized departments during their tenure, none have closed important agencies. Musk has recently highlighted that there are too many “duplicate” regulatory agencies.
In November he advocated, for example, the elimination of the Consumer Financial Protection Bureau (CFPB)a government agency that makes sure that banks, lenders and other financial companies treat users fairly.
He ‘Project 2025’a government program prepared by ultra-conservative groups from which Trump has disassociated himself, although he has later included some of its authors for his future Administration, requested the merger of the FDIC, the OCC and the non-monetary policy divisions of the Reserve Federal (Fed).
According to the economic newspaper, banking executives trust that Trump will ease regulations on consumer protections, among other points.
Their sources point out that, whatever happens, there are expected to be job cuts. Trump is expected to reinstate the executive order that facilitated the layoff of some federal workers and are also discussing stricter policies that force in-person work and that could prompt some employees to leave.
#Trump #advisers #eliminating #banking #regulators #WSJ
