How Trump could overhaul US financial regulators if he wins on Nov. 5
By Michelle Price
WASHINGTON, Oct 10 (Reuters) -If Republican former President Donald Trump wins the U.S. election on Nov. 5 he is expected to swiftly overhaul the country's financial regulators, which under Democratic President Joe Bidenhave pursued a slew of stringent new rules for banks, private funds and other lenders. Here's how Trump could take control of the agencies upon taking office on Jan. 20, 2025.
US SECURITIES AND EXCHANGE COMMISSION CHAIR GARY GENSLER
Trump has said he'll fire SEC chair Gary Gensler on day one. While most legal scholars agree the president does not have the power to fire the SEC chair outright, the president can replace the chair with another commissioner who can serve in an acting capacity until the Senate confirms a permanent replacement.
In Trump's case, that would most likely be one of the two Republican commissioners, Hester Peirce or Mark Uyeda. Gensler could continue on as a commissioner until his term ends in 2026, although that would be highly unusual.
COMMODITY FUTURES TRADING COMMISSION CHAIR ROSTIN BEHNAM
Similarly, the law does not say explicitly whether the president has the power to remove the CFTC chair, according to the Government Accountability Office. But Trump would have the power to replace CFTC chair Rostin Behnam with another CFTC commissioner, which would likely be either Republican CFTC commissioner Summer Mersinger or Caroline Pham.
CONSUMER FINANCIAL PROTECTION BUREAU
In 2020, the U.S. Supreme Court handed the president more authority over the Consumer Financial Protection Bureau, including by empowering him or her to fire its director at will.
Trump is expected to remove Director Rohit Chopra on day one, but the question of who can serve as acting director has historically been contentious. The Trump administration in 2017 asserted that it had the power under the 1998 Federal Vacancies Act to install an acting CFPB director, while the agency's deputy director at the time, Leandra English, argued that under the 2010 Dodd-Frank law which created the agency she was its rightful interim director.
The extraordinary dispute went to court and the a federal judge in Washington sided with the Trump administration. The appeals court did not adjudicate the case.
CFPB experts believe Trump could successfully cite both the circuit court ruling and the 2020 U.S. Supreme Court decision in asserting his right to appoint the interim director.
ACTING COMPTROLLER OF THE CURRENCY MICHAEL HSU
Trump would have the power to immediately replace Acting Comptroller of the Currency Michael Hsu, the national bank regulator, with another acting comptroller. That person could run the agency, potentially for years, until the Senate confirms a comptroller.
FEDERAL DEPOSIT INSURANCE CORPORATION
The FDIC situation is more complex. Following a sexual harassment scandal at the agency, Democratic FDIC chair Martin Gruenberg has said he'll step down once Congress confirms his replacement. But with the Senate dragging its feet on the confirmation of Democratic Biden nominee Christy Goldsmith Romero, it remains unclear when that would be.
The question of whether the president can only remove the FDIC chair for cause is an open one, according to legal experts, although some Republican lawmakers have argued that Biden could have fired Gruenberg based on leadership failings identified by an independent probe into the scandal. It said multiple FDIC employees reported Gruenberg was prone to losing his temper and had an "aggressive" managerial style.
Gruenberg has said he never recalled acting inappropriately and has vowed to implement that report's recommendations to improve the FDIC's culture.
Regardless of who is chair in January, by replacing Chopra and Hsu, the other two Democrats on the five-member FDIC board, Trump could hand control of the agency to Republicans. The board's Republican majority could block rulemakings brought by the chair and force votes on other issues the chair may oppose.
Democrats pulled a similar move in 2021, when they went around then Trump-appointed chair Jelena McWilliams and voted through a bank merger policy review despite her protests.
U.S. FEDERAL RESERVE VICE CHAIR FOR SUPERVISION MICHAEL BARR
The president can only fire Fed governors for cause, meaning Barr could stay in his role as the central bank's regulatory chief until his term expires in July 2026.
But by replacing Hsu and packing the FDIC board, Trump could gain control of a large proportion of the bank regulatory agenda, and block any Fed projects that the central bank has to work on with the other two agencies. That could include the contentious Basel Endgame capital hikes, plans to require regional banks to issue more long-term debt, and new requirements ensuring banks have enoughliquidity during times of stress.
Reporting by Michelle Price; additional reporting by Pete Schroeder and Douglas Gillison; editing by Jonathan Oatis
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
