DOGE, Overdraft Suit, Little Banks’ Big Problems: This Week’s Top Stories
The House Ethics Committee voted to release its report on former congressman Matt Gaetz, R-FL, “Bidenomics” had a better year than the president himself, and ever wonder about the origins of the ugly Christmas sweater? Here’s what else you might want to read this week:
“Politics, History, Hubris: Why Agency Consolidation Isn’t Easy”
The Trump administration’s DOGE is thinking about abolishing the FDIC and moving deposit insurance under the Treasury Department amid a broader push to consolidate and streamline federal agencies. If history is any guide, such an effort will encounter stiff political and industry resistance. Earlier this week, Bloomberg Law reporter Evan Weinberger joined Banking with Interest to discuss the potential fallout of eliminating the FDIC; listen to the episode here.
“Musk Draws First Blood With Spending Bill Bombshell”
Speaking of DOGE, lawmakers who may harbor skepticism about its ability to overhaul the government were forced to take notice after its co-leader, Elon Musk, pushed his 200-million-plus X followers to call their representatives and urge them to vote against a bipartisan funding bill. They listened and GOP support for the bill evaporated. “Our constituents, the people who elected us, are listening to Elon Musk,” said Rep. Andy Barr, R-KY. “My phone was ringing off the hook today.” The government is set to close down on Friday if Congress can’t agree on a new plan.
“Trade Groups Sue CFPB Over Overdraft Rule”
The American Bankers Association sued the CFPB yet again, this time over its overdraft rule. The rule “ignores thoughtful industry and stakeholder feedback, and will harm the very consumers the CFPB claims to protect,” ABA President and CEO Rob Nicols wrote in a press release Friday.