The Trump team is currently planning a major overhaul of U.S. financial regulatory agencies, potentially merging or abolishing some key institutions, such as the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve (FED).
Exploring the possibility of reducing or merging financial regulatory agencies, DOGE seeks to abolish the FDIC.
According to reports, the Trump team is evaluating the merger or abolition of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve (FED). This includes incorporating the FDIC's deposit insurance function into the Treasury, but the plan still requires approval from the U.S. Congress.
Trump announced the establishment of a new government efficiency department (DOGE) to be co-led by Musk and entrepreneur Ramaswamy, aimed at comprehensive reform of the U.S. government, which will not be limited by existing government structures, or as a 'shadow government' for the United States. Musk has previously been appointed by Trump to cut government costs and has suggested abolishing the Consumer Financial Protection Bureau (CFPB), and DOGE is currently seeking the possibility of abolishing the Federal Deposit Insurance Corporation (FDIC).
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Adjustment of the regulatory system, the future fate of the three major agencies
The Trump team is currently considering several options:
Merge the three major regulatory agencies (FDIC, OCC, and FED): consolidate the three agencies into a single regulatory body.
Partial retention or reduction: only one agency retains regulatory functions, while the others only retain non-regulatory departments.
Regardless of which option is chosen, large-scale layoffs are expected, and there may be stricter 'return to the office' measures imposed on civil servants.
The new government reform plan has sparked heated discussion.
In addition to financial regulation, DOGE is also considering reform measures for other government departments, such as reinstating the defunct Schedule F executive order, which allows the government to more easily dismiss certain federal employees. Additionally, the Trump team's reform proposals for the CFPB also include shifting the focus to consumer education and reducing its regulatory and oversight functions.
This reform could have a significant impact on the U.S. financial markets and regulatory environment, sparking differing opinions on both sides. Supporters believe that cutting redundant departments could improve government efficiency and reduce costs; on the other hand, there are concerns that large-scale regulatory restructuring could affect financial stability and even weaken consumer protections. Currently, the Trump team has not publicly stated specific details, and any significant changes will still require congressional approval.
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This article reports that the Trump team plans to reduce or merge the Federal Reserve and OCC, and the government efficiency department DOGE seeks to abolish the FDIC, first appearing in Chain News ABMedia.