Market News: Trump administration is preparing to relax supervision of FDIC to some extent
Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation (FDIC) resigned in May this year amidst an investigation into the toxic workplace culture at the institution. However, Gruenberg stated that he will continue to serve until his successor is appointed and confirmed. The Trump administration is preparing to relax regulations on the FDIC to some extent, as the institution strengthened its scrutiny of banks after the regional banking crisis in 2023. For example, the institution has stated that it will adopt stricter scrutiny of certain-sized bank transactions.
The top priority of the Trump administration is to dismiss Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who has said that he will fire him on his first day in office. One of the candidates considered by Trump's allies to replace Gensler is Dan Gallagher, the chief legal officer of Robinhood and a former SEC commissioner. Other candidates include J. Christopher Giancarlo, a senior adviser at Willkie Farr & Gallagher law firm and former chairman of the Commodity Futures Trading Commission (CFTC), and Dalia Blass, a partner at Sullivan & Cromwell law firm.
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