Summary
Trump’s team is considering abolishing key banking regulators, including the FDIC and OCC, with plans to consolidate their functions under the Treasury Department.
Critics warn this could undermine public trust in banking, weaken deposit insurance protections, and risk another financial crisis.
The FDIC, established during the Great Depression, played a crucial role in managing the 2023 banking crisis.
Trump allies, backed by financial industry donors, are also targeting other consumer protections, reflecting sweeping deregulatory ambitions tied to Project 2025’s proposals.
Experts fear these moves could destabilize the economy.
Maybe move your savings to a good local credit union if that’s an option for you.
Is that safer than a national bank if we do away with FDIC? Seems like a local credit union would fail before a large corporate bank. But maybe I’m wrong…
NCUA insures credit unions. The FDIC does banks and is much more well known.
The idea is that they might not get rid of NCUA.
I never heard of this. It’s not a bad thought at all.