WASHINGTON—Discussions about regulatory restructuring have suddenly “broken into the open” this week in Washington, with mentions of folding the FDIC into Treasury. And one analyst contends these talks will eventually address sweeping NCUA into whatever new regulatory structure is created.
The Wall Street Journal reported that Trump Administration officials are discussing plans to curtail and combine the power of banking regulators—without Congress's input.
“Consolidation of financial regulators has been talked about beneath the surface since the election, but this week it seems to have broken into the open,” said Washington CU advocate John McKechnie. “Senate Banking Republicans have begun discussing folding the various agencies into a larger unified structure, maybe at Treasury. To the extent that I’ve heard NCUA discussed, it’s predictably an afterthought. But since the rumors are about a single deposit insurer, I’d assume NCUSIF would be in that discussion.”
“This is certainly a development we will continue to monitor,” said Defense Credit Union Council Chief Advocacy Officer Jason Stverak. “For the past year, DCUC has repeatedly talked about the need for a strong and independent NCUA to ensure credit union interests are protected. We will continue to educate Members of Congress and the administration on this subject. Protecting a strong and independent NCUA is part of DCUC's 2025 Advocacy agenda.”
The Journal stated that Trump’s team and supporters have looked at whether it is possible to collapse the FDIC into the Treasury Department.
“They have also discussed combining the FDIC's regulatory role with the Office of the Comptroller of the Currency under Treasury,” the Journal said.
As CUToday.info has extensively reported, Elon Musk and the current Administration have already zeroed in already on the CFPB, adding acting CFPB director duties to Office of Management and Budget head Russell Vought. As CUToday.info also reported, Vought move quickly to shut down the CFPB.
The Journal, citing people familiar with the matter, also said that staff inside the FDIC and the OCC expect to hear from DOGE soon.
The Independent Community Bankers of America addressed reports that the Trump Administration may be moving to consolidate banking regulators.
“Community banks—and the banking system as a whole—provide Americans with a safe and trusted means to conduct financial transactions, with deposits insured through the FDIC and backed by the full faith and credit of the U.S. government. Any changes to its structure must involve careful study and input from all stakeholders, including community banks," said ICBA President and CEO Rebeca Romero Rainey. “As the key stakeholders that fund the FDIC Deposit Insurance Fund and Federal Reserve oversight through assessments, community banks support efforts to enhance efficiency across the federal banking regulatory agencies. Any changes in supervision must ensure that community banks have a level playing field and that one-size-fits-all regulation does not compromise ICBA’s goal to create a tiered regulatory system."