Trump team plans to shrink or merge the Fed and OCC, while the Efficiency Department of the government seeks to abolish FDIC, and DOGE remains unchanged.

The Trump team is currently planning a major overhaul of US financial regulatory institutions, which may involve merging or abolishing some major institutions, such as the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve (FED).

Exploring the possibility of reducing or merging financial regulatory agencies, DOGE seeks to abolish the FDIC.

According to reports, the Trump team is evaluating the merger or abolition of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve (FED). This includes incorporating the deposit insurance function of the FDIC into the Treasury Department, but the plan still requires approval from the US Congress.

Trump announced that Musk and entrepreneur Ramaswamy will jointly lead the newly established Department of Government Efficiency (DOGE), which aims to comprehensively reform the US government. In operation, it will not be restricted by the existing government structure, or serve as a 'shadow government' for the United States. Musk was previously appointed by Trump to be responsible for reducing government costs and proposed the abolition of the Consumer Financial Protection Bureau (CFPB). Currently, DOGE is also seeking the possibility of abolishing the Federal Deposit Insurance Corporation (FDIC).

(Exclusive | Global Shock! The U.S. Shadow Government's DOGE Releases a Trailer Premiering on January 20, 2025, the Inauguration of Trump)

Regulatory system adjustment, the future fate of the three major institutions

The Trump team is currently considering the following options:

Merge the three major regulatory agencies (FDIC, OCC, and FED): integrate the three agencies into a single regulatory body.

Partial retention or reduction: only one institution is responsible for regulatory functions, and other institutions only retain non-regulatory departments.

Regardless of which plan is chosen, there is expected to be a large-scale layoff and possibly stricter 'back-to-office' measures for civil servants.

The new government reform plan has sparked heated discussions.

In addition to financial regulation, DOGE is also considering reform measures in other government departments, such as reactivating the previously deactivated Schedule F executive order, which would make it easier for the government to dismiss certain federal employees. In addition, the Trump administration's reform proposal for the CFPB also includes shifting focus to consumer education and reducing its regulatory and supervisory functions.

This reform may have a significant impact on the US financial market and regulatory environment, and has aroused different views. Supporters believe that reducing redundant departments can improve government efficiency and reduce costs. On the other hand, some people are concerned that large-scale regulatory restructuring may affect financial stability and even weaken consumer protection. The Trump team has not yet publicly expressed its specific details, and any major changes still require congressional approval.

(JPMorgan: Trump's efficiency department DOGE is likely to be empty talk, reform requires congressional support, overcoming bipartisan divisions)

This article reports that the Trump team plans to reduce or merge the Federal Reserve and the OCC to improve efficiency, while the DOGE of the government seeks to abolish the FDIC. It was first reported by Chain News ABMedia.