The Trump team is considering eliminating the Federal Deposit Insurance Corporation

On December 13, according to a report in the Wall Street Journal, people familiar with the matter said that Trump's advisers and officials from his newly formed Department of Government Effectiveness have asked him whether he can abolish the Federal Deposit Insurance Corporation. Some of them said that advisers have also asked nominees who are considering positions at the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (OCC) whether they can merge the deposit insurance business into the Treasury Department. Any proposal to abolish the FDIC or any other agency would require congressional action. While past presidents have restructured and renamed departments, Washington has never shut down a major cabinet-level agency, and it has rarely shut down important non-cabinet-level agencies like the FDIC. While banking executives are optimistic that Mr. Trump will loosen a series of rules on capital buffers, consumer protections and industry consolidation reviews, the FDIC's deposit insurance business is seen as almost sacrosanct. Any move that even threatens to undermine the perception of deposit insurance could quickly set off a chain reaction in the banking industry and, in a crisis, could fuel panic among customers.