The U.S. Treasury Department is reportedly preparing a set of recommendations to streamline banking oversight, potentially reshaping the role of key regulators like the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), according to a report from Semafor. This move aligns with the Trump administration’s broader push to expand executive power and gain stronger influence over the country’s largest financial institutions.
Citing sources familiar with the matter, the report suggests that Treasury Secretary Scott Bessent is leading efforts to assert more authority over independent financial regulators. If implemented, the changes could significantly reduce the autonomy of agencies like the OCC and FDIC, which have traditionally operated with a degree of independence from the executive branch. Both agencies declined to comment, and the Treasury has not yet responded to requests for clarification.
This initiative follows a recent executive order that gives the White House increased control over independent agencies, further consolidating power within the administration. In parallel, the Consumer Financial Protection Bureau (CFPB), once a prominent consumer watchdog, has been largely inactive after being ordered to suspend operations.
Meanwhile, the OCC recently laid off 76 probationary staff members, signaling internal shifts. Last week, President Trump also dismissed two Democratic commissioners from the Federal Trade Commission, altering the agency's bipartisan structure.
These developments underscore the administration’s ongoing efforts to deregulate the financial sector, limit oversight, and assert more centralized control. The proposed recommendations, if approved, could mark a significant transformation in how U.S. banking institutions are supervised, with implications for both regulatory policy and institutional independence.