According to informed sources, as Wall Street awaits reduced corporate regulation under the leadership of incoming President Trump, his transition team is exploring ways to downsize, consolidate, or even eliminate top bank regulatory agencies.

During interviews with candidates for bank regulatory leaders, Trump's advisers asked if the Federal Deposit Insurance Corporation could be abolished. This agency provides insurance for deposits at Bank of America to prevent losses in the event of a bank failure.

These advisers include officials from the newly established Department of Government Efficiency. They also inquired with two candidates whether deposit insurance could be incorporated into the Treasury once the Federal Deposit Insurance Corporation (FDIC) is dissolved.

The interviews also discussed the possibility of merging or restructuring the FDIC, the Office of the Comptroller of the Currency (OCC), and the Federal Reserve. The candidates interviewed by the advisers are considered by the FDIC and OCC.

Another proposed plan is to have only one agency—either the FDIC, OCC, or part of the Federal Reserve—regulate banks, while other agencies retain non-regulatory personnel.

Abolishing the Federal Deposit Insurance Corporation or any agency would require approval from Congress, and taking such radical steps to reduce government regulation may not easily gain support.

The 2025 plan is a conservative policy blueprint formulated for the presidential transition in 2025, calling for the streamlining of bank regulation through the merger of the OCC, FDIC, National Credit Union Administration, and non-monetary functions of the Federal Reserve. Notably, Trump has publicly opposed the 2025 plan but has nominated several individuals associated with that agenda to his administration.

Elon Musk called for the abolition of the Consumer Financial Protection Bureau last month, stating that "there are too many redundant regulatory agencies."

At a recent event, JPMorgan CEO Jamie Dimon stated that the banking industry is expected to reduce regulations under Trump's leadership. "Many bankers are dancing on the street because they have been regulated for many years, and much of this regulation hinders Crediting."

Editor/ping