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
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
