Elon Musk defended DOGE's cost-cutting measures during a press conference inside the Oval Office, Amazon's drive to bring workers back to the office has been bumpy, and after a long phone conversation with Russian President Vladimir Putin, President Trump said peace talks with Ukraine will begin soon. Here's what else you might want to read this week:
"Trump Advisers Eye Bank Regulator Consolidation After Targeting CFPB"
This is the second article from The Wall Street Journal to suggest that the Trump administration intends to consolidate bank regulators, whether Congress wants to or not. Since the end of last year, the president's advisers and allies have been discussing whether to move the FDIC's supervisory functions under the OCC and leave the FDIC in charge of deposit insurance. They've also been discussing combining or restructuring the Fed's supervisory function. To be sure, it's not clear how much of these plans they can actually follow through on-and it seems almost certain to end up in a court of law-but the administration's commitment to this idea is notable.
"Bankers Want Agency Independence, but Split on Consolidation"
Speaking of consolidation, bankers are mostly split on the issue, according to a survey released this week by IntraFi. Fifty-two percent said they support some kind of consolidation, though reading the comments, it seems clear many of them favor the dissolution of the CFPB rather than combining the OCC and FDIC. Still, 93% of respondents support maintaining the independence of federal banking agencies. Eighty-one percent of respondents who supported consolidation cited excessive regulatory burdens stemming from multiple agencies as their reason.
"CFPB's Future Hangs in the Balance After a Wild Weekend"
Last Friday, Elon Musk tweeted "CFPB RIP," along with a tombstone emoji. This week, the agency's website was unplugged, its X profile was deleted, headquarters staff were instructed to not come into the office, and acting head Russ Vought told the Fed the agency wouldn't accept any new unappropriated funding starting next quarter. President Trump has confirmed he intends to shutter the CFPB, claiming it "was set up to destroy some very good people."
Elon Musk has received considerable criticism for conflicts of interest posed by his new role in the federal government and his proximity to President Trump. One example: Musk's new payment system, X money, which would typically fall under the purview of the CFPB.
"Trump Steps Up Overhaul of Bank Oversight with Key Picks"
President Trump selected Jonathan Gould, a partner at Jones Day, to be the OCC's permanent comptroller of the currency; former FDIC board member Jonathan McKernan to be permanent director of the CFPB (which would put him back on the FDIC board); and Brian Quintenz, head of policy at Andreessen Horowitz, to run the CFTC. Gould joined Banking with Interest in 2023 to discuss why he thought banking regulators were exceeding their authority. Revisit that episode here.
"Powell Backs Leverage Ratio Update, Treasury Market Reform"
Fed Chair Jerome Powell trekked to Capitol Hill for his semiannual testimony on monetary policy, where he discussed the need for a lower supplemental leverage ratio to improve the functioning of the U.S. Treasurys market. He also said the Fed expects a new Basel III endgame proposal following the confirmation of OCC and FDIC officials, that he would be okay with not having a Fed vice chair for supervision, and that shutting down the CFPB would create gaps in consumer oversight.
"Warren, Waters Warn Bank Regulators Against Aiding 'Unlawful' DOGE Actions"
Senate Banking Committee ranking member Elizabeth Warren, D-MA, and House Financial Services Committee ranking member Maxine Waters, D-CA, wrote a letter to federal banking regulators urging them not to "aid and abet" any "unconstitutional or unlawful conduct" and to protect sensitive data in their possession.
"Stablecoin Legislation Starts to Take Shape"
Waters also published a draft of stablecoin legislation, following on the heels of legislation introduced last week by Sen. Bill Hagerty, R-TN, and a separate draft produced by HFSC chair French Hill, R-AK, and Rep. Bryan Steil, R-WI. While the efforts differ around governance (Waters' bill outlines a role for the Fed), the broad support for legislation indicates a new regulatory infrastructure could be finalized soon.
"FDIC Likely Subject to EO on Federal Workforce Reduction"
The FDIC will likely have to identify positions and programs not specifically mandated by law as part of a new executive order from President Trump to downsize the federal workforce, American Banker reported. On Monday, Warren and other Senate Dems wrote to the FDIC's Office of Inspector General requesting that it investigate the withdrawal of some 200 bank-examiner job offers, given staffing shortages.
"Banks Anticipate Smoother Sailing for Consolidation"
The banking industry is anticipating a friendlier regulatory environment for dealmaking over the next four years. Under the Biden administration, it took a median of 265 days for regulators to approve bank mergers, compared to a median of 187 days during President Trump's first term.
"Senators Reintroduce Bill to Bar CBDC"
Senator Mike Lee, R-UT, and other GOP lawmakers re-introduced a bill to prevent the Fed from issuing a central bank digital currency, claiming CBDC would enable the Fed to unfairly compete with private institutions and hold undue sway over the economy. Powell said in testimony this week that the Fed will not pursue a CBDC while he is chair.
"Where Will Growth Come from in 2025?"
Three bank chiefs discuss their institutions' pursuits of new growth initiatives and plans to measure success.
"As Banks Embrace AI, Soft Skills Matter More Than Ever"
What really matters in an industry marked by the proliferation of chatbots and other AI tools? Quality human interaction.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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