Eliminate the FDIC? Trump evaluates getting rid of banking regulators

As part of the work of the Department of Government Efficiency (DOGE), Donald Trump is considering getting rid of some regulations in the banking sector. As The Wall Street Journal reported, abolition or absorption by another agency of the Federal Deposit Insurance Corporation (FDIC) is not out of the question.

"In recent interviews with potential nominees to lead bank regulatory agencies, Trump advisers and officials from his newfound DOGE have, for example, asked whether the president-elect could abolish the Federal Deposit Insurance Corp., people familiar with the matter said," the WSJ reported. 

They also added that Trump's advisers asked the nominees whether the FDIC could eventually be absorbed by the Treasury Department, which Scott Bessent will lead.

Should they wish to proceed with elimination, this would require congressional action. Bessent and people involved in the DOGE interviewed the various candidates for bank regulators.

Although Trump repeatedly remarked that his agenda is not related to Project 2025 of the Heritage Foundation, this document proposes merging different-style agencies, such as the FDIC, the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA).

In the past, Elon Musk has called for eliminating the Consumer Financial Protection Bureau (CFPB), which oversees banks, lenders and large nonbanks. "There are too many duplicative regulatory agencies," the tycoon said at the time.

Congressman Andy Barr (R-KY), a frequent Trump ally on the House Financial Services Committee, also discussed merging or eliminating the CFPB. Indeed, he said its role is problematic because it creates a single "one-size-fits-all" regulation for all banks.