The Trump transition team is reportedly considering a series of financial sector reforms, as detailed in a Wall Street Journal report. These reforms include the potential closure of the Federal Deposit Insurance Corp. (FDIC).
Key discussions involve either combining or restructuring the main federal bank regulators, which could necessitate congressional action for implementation. The FDIC, the Office of the Comptroller of the Currency (OCC), and the Federal Reserve are the entities under consideration for such changes.
According to the report, Trump’s advisers, along with officials from the newly formed Department of Government Efficiency (DOGE), have been in dialogue with potential nominees to lead these bank regulatory agencies. They have inquired about the possibility of abolishing the FDIC and integrating deposit insurance into the Treasury Department.
Martin Gruenberg, the current FDIC Chair, has announced that he will end his term on January 19, just a day before President-elect Trump’s inauguration. Meanwhile, potential nominees for the FDIC role have been interviewed by Treasury Secretary pick Scott Bessent and DOGE. Bessent, a seasoned Wall Street executive, supports Trump’s economic agenda, which includes tariffs, lower taxes, and reduced federal regulations.
