Trump Advisers Consider Eliminating FDIC in Push for Deregulation

The proposal to restructure or abolish the Great Depression-era agency would require congressional approval and could reshape U.S. banking oversight.

President-elect Donald Trump's advisers are exploring plans to shrink, merge, or eliminate federal banking regulators, including the Federal Deposit Insurance Corporation (FDIC).
The FDIC's deposit insurance, which protects deposits up to $250,000, could be absorbed into the Treasury Department under the proposal, according to reports.
The FDIC, created in 1933 to stabilize the banking system, has been central to maintaining public confidence in banks, particularly during recent regional bank failures.
Experts and former officials warn that eliminating the FDIC could undermine financial stability and face significant resistance from Congress and the banking industry.
Elon Musk and Vivek Ramaswamy, leaders of Trump's Department of Government Efficiency, are reportedly driving discussions on consolidating regulatory agencies as part of broader deregulation efforts.