PANews, December 13 news, according to the financial sector citing the Wall Street Journal report, informed sources revealed that Trump's advisers and officials of the newly formed government efficiency department inquired whether they could abolish the Federal Deposit Insurance Corporation (FDIC) of the United States. Some of them said that the advisers also inquired whether the nominees being considered for positions at the FDIC and the Office of the Comptroller of the Currency (OCC) could incorporate the deposit insurance business into the Treasury Department. Any proposal to abolish the FDIC or any other institution would require action by Congress.
While past presidents have reorganized and renamed various departments, Washington has never shut down a major Cabinet-level agency, and rarely closed important non-Cabinet-level institutions like the FDIC. Although bank executives are optimistic that Trump will relax a series of regulations related to capital buffers, consumer protection, and industry consolidation review, the FDIC's deposit insurance business is seen as almost sacrosanct. Any action, even just potentially undermining people's perception of deposit insurance, could quickly trigger a chain reaction in the banking industry and, during a crisis, could exacerbate customer panic.
