The Trump transition team has started to explore pathways to dramatically shrink, consolidate or even eliminate the top bank watchdogs in Washington.
In recent interviews with potential nominees to lead bank regulatory agencies, Trump advisers and officials from his newfound Department of Government Efficiency have, for example, asked whether the president-elect could abolish the Federal Deposit Insurance Corp., people familiar with the matter said.
Advisers have asked the nominees under consideration for the FDIC, as well as the Office of the Comptroller of the Currency, if deposit insurance could then be absorbed into the Treasury Department, some of the people said.
Any proposal to eliminate the FDIC or any agency would require congressional action. While past presidents have reorganized and rebranded departments, Washington has never shut down a major cabinet-level agency and rarely closed other agencies like the FDIC that are not.
Bank executives are optimistic President-elect Donald Trump will ease a host of regulations on capital cushions and consumer protections, as well as scrutiny of consolidation in the industry. But FDIC deposit insurance is considered near sacred. Any move that threatened to undermine even the perception of deposit insurance could quickly ripple through banks and in a crisis might compound customer fears.
This is so crazy I can’t imagine even these freaks would actually do it. But consider that this is the kind of thing that’s never necessary until we have a financial crisis so people may not realize how important it is until it’s too late. Luckily we haven’t had one in … checks notes … 16 years. So, not a problem.
I wish I had more faith that the Democrats would find a way to stop this and exploit it but instead I’m seeing nonsense like this from progressives:
I’m sure they’ll be thrilled to only cut the parts of government thast progressives want them to cut. No need to worry about all the rest of it.
Politico reports that the sucking up has just begun.
As President-elect Donald Trump prepares to install Musk as the federal government’s cutter-in-chief, some ambitious Democrats are taking a warmer approach to the billionaire businessman than their party leaders have in the past as he has become one the most influential people on the planet.
“He’s had an undeniable impact on the Pennsylvania election, and I think the election overall,” Fetterman, the Democratic Pennsylvania senator, told POLITICO. “I’ve warned Democrats, if you’re just going to make fun of it or to dismiss it, you do it at our peril. And I think that’s very clear what happened.”
Musk is the world’s richest man, and his companies are helping determine the future of space exploration, electric vehicles, AI and social media. Democrats who are making friendly overtures to him said that they want to shape the thinking of someone who will have an outsize microphone regardless of what they do. They are also eager to encourage him to develop his businesses in their backyards.
Some of them are also eyeing presidential runs in 2028, and may want to avoid getting on his bad side for political reasons. Musk spent $280 million this year supporting Trump and other Republicans.
[…]
But increasingly, some Democrats are arguing that was the wrong approach and think Musk played an outsize role in helping elect Trump — the latest sign that the left is confronting the president-elect differently this time around. It’s an open question whether other Democrats will follow suit, and either benefit or suffer consequences.
Some Democrats remain deeply skeptical of Musk, who is one of several billionaires and tech leaders Trump has tapped to staff his administration. They see Musk as an oligarch, and are concerned about his plans to slash the federal government with entrepreneur Vivek Ramaswamy as incoming co-leaders of Trump’s Department of Government Efficiency.
“I reserve the right to be surprised, but this looks to me like a coming kleptocracy, in which all these billionaires are running the government in order to rig the rules,” said Sen. Chris Murphy (D-Conn.). “So I’m pretty fucking skeptical that this is a legitimate effort.”
Yeah, I’m pretty fucking skeptical too. But progressives seem to be very open to working with him to cut the things they want cut. Please:
Sen. Elizabeth Warren (D-Mass.) told POLITICO that “If Elon Musk wants to change government contracting to cut billions of dollars of waste out of the Pentagon budget, count me in.” Sen. Raphael Warnock (D-Ga.) said that “I’m all in for cutting waste, making our government efficient and delivering for the people of Georgia” and “I’ll work with whomever I have to work with, if I can, to get that done.”
Sen. Bernie Sanders (I-Vt.) likewise posted on X, “Elon Musk is right. The Pentagon, with a budget of $886 billion, just failed its 7th audit in a row. It’s lost track of billions.”
Do these people really think Elon’s their guy? He’s totally red pilled, and he’s not going back. And he’s an oligarch fergawdsakes!
Populist Democrats lining up to work with the richest man in the world to cut government. My God.