Summary

Trump’s team is considering abolishing key banking regulators, including the FDIC and OCC, with plans to consolidate their functions under the Treasury Department.

Critics warn this could undermine public trust in banking, weaken deposit insurance protections, and risk another financial crisis.

The FDIC, established during the Great Depression, played a crucial role in managing the 2023 banking crisis.

Trump allies, backed by financial industry donors, are also targeting other consumer protections, reflecting sweeping deregulatory ambitions tied to Project 2025’s proposals.

Experts fear these moves could destabilize the economy.

  • peoplebeproblems@midwest.social
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    8 days ago

    Destabilize?

    No, this is far worse. Big banks will just take your money. Credit Unions? I have no fucking idea.

    I also can’t just walk into my bank and pull out $10k without raising all sorts of questions and concerns.

    Jesus fuck.

    • Alex@lemmy.world
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      8 days ago

      When gambling on the failure of stocks is allowed you get stupid people trying to tear the whole thing down over a quick buck smh.

    • jagged_circle@feddit.nl
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      8 days ago

      You should be able to pull out $10k fairly easily. When you go to spend $10k in cash, that’s where you’ll get a ton of resistance.

      So keep bank receipts for large cash withdrawals.

  • subiacOSB@lemmy.ml
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    8 days ago

    Might as well take a gamble and put all my money in bitcoin if it’s not FDIC insured

  • jagged_circle@feddit.nl
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    8 days ago

    Where do the millionaires on Trump’s cabinet store their money? Because I know those greedy assholes dont want to loose their own bucks.

  • jagged_circle@feddit.nl
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    8 days ago

    Can someone please tell me which country has US-style nonprofit banks (credit unions) where I can store hundreds of thousands of dollars without monthly fees?

  • kandoh@reddthat.com
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    8 days ago

    This is what people want. Nice high unemployment so labor costs for fast food and services are rock bottom.

  • werefreeatlast@lemmy.world
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    8 days ago

    Hey, I was driving home and I saw a mcmantion. Its going to be awesome when I buy it next week! So many loans! So little time!

    • The_v@lemmy.world
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      10 days ago

      The 2020’s are looking to end like the 1920’s.

      Not a recession, but a massive depression.

      • EleventhHour@lemmy.world
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        10 days ago

        Except, considering how globalized the world economy is today, it would cause a complete total economic collapse on a global scale. You thought the great depression in the 1920s was bad? You have no idea how bad it can really get.

        • rayyy@lemmy.world
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          8 days ago

          a complete total economic collapse on a global scale.

          Of course it will all be peaceful, right, RIGHT?

        • BlemboTheThird@lemmy.ca
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          10 days ago

          It’s not just economic globalization, but the global ecosystem’s food chains are already starting to collapse thanks to climate change, and our factory farming systems are becoming increasingly prone to virulent diseases wiping out huge crops of both plants and animals. I wonder what happens when food prices skyrocket because half our food supply has been contaminated, and at the same time inflation explodes thanks to plain ol’ financial mismanagement

    • Heikki@lemm.ee
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      10 days ago

      Trump (2 weeks after everything all the experts said would happen happens): Noun one knew how complicated banking is… my uncle, the MIT professor; huege brain was surprised this happened. An MIT professor didn’t think this could happen; speaking of things that happen, Batron… where is Batron? Where is, possibly, my “favorite” son? The crypto visionary. Let me tell you about the importance of crypto. Did you know this stuff is mined? Like from the earth? More valuable than water it is. Looking to back the usd by crypto and then by water. It’s free it just drops from the sky like “Bing, Bing Bing bing” might as well as be kaching!!

      • T00l_shed@lemmy.world
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        10 days ago

        I fucking hate that what you wrote could be credibly said by him. I mean except how eloquently you put it lol

  • dhork@lemmy.world
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    10 days ago

    They don’t care if they tank the dollar, it will make the assets in the Strategic Dogecoin Reserve that much more valuable.

        • shortwavesurfer@lemmy.zip
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          10 days ago

          As the person said below, move your currency out of the US dollar into something like gold or buy a house with a 30-year mortgage because you are basically shorting the dollar for a hard, tangible asset.

          • NaibofTabr@infosec.pub
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            10 days ago

            This assumes that you will have an income of something worth more than the US dollar to pay the mortgage with. If your income continues at the same amount of US$ then your mortgage payment will still cost you the same amount of income, regardless of how the global valuation of the US$ changes.

            • shortwavesurfer@lemmy.zip
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              10 days ago

              But the asset of the house itself would go up in value. I guess you do have to worry about the sales extortion when you go to sell it though. Which would not help very much. So I guess you’d end up at break even.

        • rishado@lemmy.world
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          10 days ago

          Well look, I’m not advocating for this coming government nor am I an economic expert. But in a vacuum one could impose tariffs on imported goods, tank the cost of labor in your own country, and force manufacturing back here, right? And in the long run, would be beneficial for local manufacturing instead of being so dependent on China. If it weren’t for the local oligarchy here I’d say it’s even a tough but fair plan for the economy. Knowing what we know, things will only get harder with no observable benefit for the working class as whatever improvement we manage to make will be sucked away by the ruling class. But the plan isn’t horseshit in a vacuum. Someone please feel free to tell me why I’m completely wrong as I’m not really speaking with too much conviction tbh

          • partial_accumen@lemmy.world
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            10 days ago

            And in the long run, would be beneficial for local manufacturing instead of being so dependent on China…Knowing what we know, things will only get harder with no observable benefit for the working class

            …and…

            Someone please feel free to tell me why I’m completely wrong as I’m not really speaking with too much conviction tbh

            Those tariffs would destroy our $1.95 trillion in exports from the USA because many of those are finished goods with input materials imported (and now tariffed to high heaven). source

            Modern manufacturing doesn’t depend on hundreds of thousands of human bodies anymore. New manufacturing factories would be highly automated and only employ a tiny fraction of the now unemployed workforce to produce the same amount of goods as in years past.

            “From 1960 to today, American steel mills have decreased from an average of 700,000 workers to just 83,000. And within the last 40 years, the productivity of labor has increased more than five times from approximately 10 man-hours per finished ton to under 2.” source

            • Sanctus@lemmy.world
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              10 days ago

              So we’re basically forfeiting a bunch of jobs related to and effected by procuring overseas input materials to gain a small fraction of manufacturing jobs? That just sounds like it will damage the economy and not bring it back up.

              • 4am@lemm.ee
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                10 days ago

                Exactly why everyone with a brain has been shouting that this is the worst possible idea.

                • Sanctus@lemmy.world
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                  9 days ago

                  Oh hell yeah, thats like 85% of things. I didnt know a brain was required to know that tbh with the sheer amount of visible foreign made items.

          • prole@lemmy.blahaj.zone
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            9 days ago

            I believe this is what Milei is selling in Argentina. I believe your assessment is correct. They’re telling us that it will be hard in the short term, but it will be worth it in the long term. The thing is, they mean worth it for the owner class. Working class people will take the brunt of it and it will just stay awful.

        • NoneOfUrBusiness@fedia.io
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          9 days ago

          In my home country (we all know the economy is gonna keep getting worse so we bet against it by default) we buy foreign currency (including ironically USD), gold, electronics or other tangible assets that hold their value.

            • NoneOfUrBusiness@fedia.io
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              8 days ago

              At least in my country sort of (besides new models of course), because they’re all imported. It might be different in the US.

              • CharlesDarwin@lemmy.world
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                8 days ago

                What country is that? As far as I know, anything electronic here in the U.S. tends to drop like a rock in value pretty much right at purchase time (just like cars - driving it off the lot usually results in a huge depreciation). With maybe a few exceptions, like when people are snapping up a bunch of some new item that is in short supply and reselling it for more than MSRP.

                • NoneOfUrBusiness@fedia.io
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                  8 days ago

                  Egypt. Electronics here are tarriffed to high hell if that matters.

                  Edit: Okay I should probably explain a bit more. In Egypt, because we import a lot of things (you can thank government mismanagement for this), the price of the Egyptian pound against foreign currency in general and the USD specifically controls the price of a lot of goods directly and literally everything indirectly. Therefore it’s usually a good idea to solidify your money in an asset whose price will rise with the USD. Usually you wanna buy USD, but that becomes less available day by day so some people bet on goods whose price will rise with the USD, like electronics (we have no domestic electronics makers) and gold. Rising foreign currency prices (well really falling EGP prices) are the driving force of inflation here so the fact that the USD itself will fall in value because of inflation doesn’t have much effect on the final calculation.

    • AbsoluteChicagoDog@lemm.ee
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      10 days ago

      And do what? It’s literally not possible to live without a bank account any more. They’ve actively destroyed cash as a means of payment

      • Gigasser@lemmy.world
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        10 days ago

        What? Cash still works man, and probably will still work. They just made non-cash ways of spending money more convenient, which is why so many aren’t using cash anymore, but it won’t go anytime soon.

        Or are you talking about something else I’m not thinking of?

        • TheLowestStone@lemmy.world
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          9 days ago

          To pay my rent I would have to take my paycheck physically to a bank, cash my check, use that cash to buy multiple money orders, and then mail those money orders. Keep in mind this has to be done early enough to be delivered before the 1st and that the bank is mostly open when I’m at work.

          • bufalo1973@lemmy.ml
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            8 days ago

            Have an “empty” account where you put only the money you need to transfer and do the transfer right after that.

          • 4lan@lemmy.world
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            9 days ago

            NYC Philly Denver San Francisco NJ DC

            All these require businesses to accept cash. The only states where it was proposed and shut down was in red states; ND MS

            “85% of sellers who accept cash and use the online payment processing service Square said they never plan to stop taking cash, according to Shelle Santana, an assistant professor at Harvard Business School who has been analyzing Square transaction data.”

            Republicans don’t care about discriminating against unbanked people. Sounds like you probably live in a Republican hell hole

            • TheLowestStone@lemmy.world
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              9 days ago

              What point are you trying to make? Nothing you said addresses any of the barriers to using cash exclusively that I brought up. My landlord doesn’t live nearby so I can’t exactly just go hand him a massive wad of cash nor will my employer pay me in cash so I don’t have to get to a bank during business hours.

              I live in California by the way.

            • Saurok@lemm.ee
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              9 days ago

              You’re probably telling them something they’re already viscerally aware of.

  • Feathercrown@lemmy.world
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    9 days ago

    Didn’t a whole silicon valley bank just wipe out its customers savings by not being fdic insured

  • CharlesDarwin@lemmy.world
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    9 days ago

    Just where the fuck will people do their banking without FDIC?

    I saw that asshat Andreesen lying his fucking ass off on Rogan about how the poor little tweedums on the right were being “debanked” because of “free speech”, but not anyone else.

    Meanwhile, what the hell would you call something like this?

    The right has people within it that are just so insane that I really do think some would withdrawal their money from the bank, and set all their own cash on fire if they thought it would pwn teh libz.

    • MisterD@lemmy.ca
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      9 days ago

      I would just avoid ALL US banks. Canada has CDIC and our future Trumpian PM hasn’t been paid yet to kill it.

      US stores don’t care where the money comes from so that could be an option.

      • jagged_circle@feddit.nl
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        8 days ago

        Do y’all have any banks that hold USD? Or are you recommending that I convert my life savings to CAD and transfer to a Canadian bank with CDIC?

        • MisterD@lemmy.ca
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          6 days ago

          Most banks do have USD accounts. How they work or if they are CDIC protected or not, I have no clue

          • jagged_circle@feddit.nl
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            6 days ago

            Got a recommendation? Are your banks as bad as your telecom companies?

            Any banks without monthly fees for inactive accounts? Credit unions? Non profits?

            • MisterD@lemmy.ca
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              3 days ago

              You’d have to do all that legwork yourself.

              I never needed to do this and you seem to a better handle on this than me.

              • jagged_circle@feddit.nl
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                3 days ago

                I googled it and seems like I basically need a Canadian tax number unless I get a 0% interest account. Doesn’t seem like an easy option for US Americans.

                Maybe I can get a temp 1 month job one day in Vancouver or something…

    • Alexstarfire@lemmy.world
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      9 days ago

      We should start this rumor. It’ll totally own me. I’ll be so subservient if they burn all their money. 😉

    • greyfox@lemmy.world
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      9 days ago

      Credit unions use the NCUA instead of FDIC. So if they don’t go after that as well there are still some options.

      • CharlesDarwin@lemmy.world
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        9 days ago

        Exactly. Maybe that’s the cui bono here - some asshole in donvict’s circle stands to gain a lot of money. I hate the overuse of those apps, by the way. People always telling me to venmo them. I often try to just hand them cash. I hate having some middle man take 3% just to move some bits; absurd.

        • Alexstarfire@lemmy.world
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          9 days ago

          Uhh, you can use Venmo without losing money. It only costs extra if you use the instant withdrawal functionality. Just wait the 2-3 days to get your money.

          That said, I’d rather get cash as well. I don’t like Venmo but sometimes it’s the much easier way. Such as when people live in other states.

          • CharlesDarwin@lemmy.world
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            8 days ago

            How do you move money in and out of Venmo without any fees? I get a 3% fee if I transfer from credit card. I see you can deposit a check and pay 1%.

            • Alexstarfire@lemmy.world
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              8 days ago

              I just transfer from/to a bank account. That’s free.

              The way you’re doing it is basically having them spot you the money until your payment clears. There is a risk, and they charge for that.