Trump advisors seek to shrink or eliminate bank regulators [View all]
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.
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