Trump advisors seek to shrink or eliminate bank regulators
Source: Wall Street Journal
The Trump transition team has started to explore pathways to dramatically shrink, consolidate or even eliminate the top bank watchdogs in Washington.
In recent interviews with potential nominees to lead bank regulatory agencies, Trump advisers and officials from his newfound Department of Government Efficiency have, for example, asked whether the president-elect could abolish the Federal Deposit Insurance Corp., people familiar with the matter said.
Advisers have asked the nominees under consideration for the FDIC, as well as the Office of the Comptroller of the Currency, if deposit insurance could then be absorbed into the Treasury Department, some of the people said.
Any proposal to eliminate the FDIC or any agency would require congressional action. While past presidents have reorganized and rebranded departments, Washington has never shut down a major cabinet-level agency and rarely closed other agencies like the FDIC that are not.
Read more: https://www.wsj.com/finance/regulation/trump-advisers-bank-regulations-fdic-efa761dc?st=nN2iCh
They're pushing to dismantle the FDIC -- the Federal Deposit Insurance Corporation -- which protects our deposits in bank accounts. The FDIC is why Americans have trusted FDIC-insured banks for almost a century.
Here's more info about the FDIC:
"One of the biggest things is to remember that deposit insurance is paid for by the banks and protects depositors in the unlikely event that their bank fails," says Julianne Breitbeil, a senior media relations officer at the FDIC. "It's not personal insurance for miscellaneous losses."
While the FDIC operates independently, when you deposit money in an FDIC-insured account, it's the U.S. government that guarantees your money will always be accessible.
Brief history
Congress established the FDIC in 1933 in response to the staggering number of bank failures during the Great Depression. Today, the FDIC insures more than 4,500 financial institutions and helps keep money safe in banks during recessions.
Buddyzbuddy
(153 posts)They should change DOGE to Duh. Let me see, first we use U.S. currency to buy all of the bitcoin we can and tell the American people it's to reduce our debt. We'll get rid of the FDIC, the Consumer Protection Agency and any regulations that ensure the safety and security of our banking industry. We increase tariffs while reducing income taxes for the top 1% and corporations. What could possibly go wrong. Oh yeah, his Wharton education is so much better than my H.S. diploma.
pnwmom
(109,650 posts)Buddyzbuddy
(153 posts)montanacowboy
(6,369 posts)to look at their bank account and see the balance as $0.00, yep what the hell can go wrong. And who will you complain to about that? No more FDIC, so fuck you all, hahaha we got away with bank robbery.
I feel like I am living in a cheap horror movie.
Avalon Sparks
(2,645 posts)Something like this would obviously result in bank runs.
do I feel someone with their hand in my pocket?
I said in 2016, he'll take mine, yours and the Treasury. And anything else he can get his hands on.
Maybe it's time to: Community organizing, decentralization, and independent cooperative banks.
Emile
(31,324 posts)Welcome to du.
muriel_volestrangler
(102,744 posts)When they voted for him, claiming they wanted him in charge of the economy, they all knew they were voting to allow banks to do what the fuck they wanted.
Midnight Writer
(23,226 posts)Alice B.
(248 posts)I see the part about how doing these things would require congressional action -- does it further discuss how easy to accomplish or how viable these schemes are?
That's the thing I always wonder. I see these articles, about what the TFG team is "exploring," and my anxiety level skyrockets. My overarching questions, since election night, have been: how easy is it to break these things? What can they realistically do and how fast can they do it?
Remember Silicon Valley Bank? My former employer, a sketchy tech company, was a depositor and I spent a few brief days sweating whether or not my paycheck was going to come in on time, if at all. You better believe I've learned to pay closer attention to banking regulations and protections, even (especially) for those of us with, like, $20 in savings and checking funds that go out as fast as they come in (I just paid bills this AM, after my direct deposit came in overnight -- this post resonates).
TBF
(34,843 posts)be sure to keep some cash at home. I don't trust these assholes further than I could throw them.