The Trump administration is thinking of abolishing the FDIC and moving deposit insurance under the Treasury Department as options for consolidating, shrinking, and eliminating bank regulatory agencies are evaluated, the Wall Street Journal reported Friday. The news follows on the heels of Elon Musk's tweet last month that the CFPB should be "deleted," and word that DOGE is weighing whether to replace regulatory and supervisory jobs at the CFPB with consumer-education jobs.
The Trump administration would need congressional approval to eliminate a federal banking agency, and so far, there seems to be little support on the Hill for such a drastic move.
But clearly big changes are under consideration. What odds do you give substantive change at the FDIC or any of the other agencies? What sorts of regulatory reforms do you think would benefit community banks most?
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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Rob, it's hard to make a material reduction in government spending without some drastic moves. Unfortunately, our government and elected officials are incented to only add to and not subtract from. Consider me a pessimist that we'll see any material changes in the next four years. But I'm in favor of smaller government and I'll cheer any sensible measures to reduce the overhead and mismanagement.
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John Tyson
CFO;Chief Financial Officer - CFO
Altamaha Bank & Trust Company
Vidalia, GA
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Original Message:
Sent: 12-16-2024 16:04
From: Rob Blackwell
Subject: Tuesday Topic: Will Trump Get Rid of the FDIC?
The Trump administration is thinking of abolishing the FDIC and moving deposit insurance under the Treasury Department as options for consolidating, shrinking, and eliminating bank regulatory agencies are evaluated, the Wall Street Journal reported Friday. The news follows on the heels of Elon Musk's tweet last month that the CFPB should be "deleted," and word that DOGE is weighing whether to replace regulatory and supervisory jobs at the CFPB with consumer-education jobs.
The Trump administration would need congressional approval to eliminate a federal banking agency, and so far, there seems to be little support on the Hill for such a drastic move.
But clearly big changes are under consideration. What odds do you give substantive change at the FDIC or any of the other agencies? What sorts of regulatory reforms do you think would benefit community banks most?
------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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