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Trump Advisers Consider Changes to Bank Regulators
According to The Wall Street Journal, advisers to former President Trump are exploring the possibility of reducing or even eliminating certain bank regulators like the FDIC and the Office of the Comptroller of the Currency. They have questioned whether deposit insurance could be managed by the Treasury Department instead. However, any such change would need Congress’s approval. Historically, while departments have been reorganized, major agencies like the FDIC have not been shut down. Elon Musk recently suggested getting rid of the Consumer Financial Protection Bureau, which has been unpopular with Republicans.
Bank Groups Challenge CFPB’s Proposed Overdraft Fee Cap
As reported by the Associated Press, banks are suing the Consumer Financial Protection Bureau over a proposed limit on overdraft fees. They argue that without these fees, consumers might turn to riskier, unregulated services. Banks have three options: charge a flat $5 fee, a fee that covers their costs, or any fee as long as they disclose it like a regular loan, usually as an annual percentage rate (APR).
SEC Charges Firm Linked to Trump’s Commerce Pick
Newsweek reports that the SEC has charged Cantor Fitzgerald, a firm associated with Trump’s Commerce nominee, for making misleading statements to investors via two special purpose acquisition companies. Cantor Fitzgerald has agreed to pay a $6.75 million penalty.
Elon Musk Faces SEC Settlement Demand
According to CNBC, the SEC has sent a settlement demand to Elon Musk following a probe into his acquisition of Twitter shares. The agency pressed Musk to settle within 48 hours or face multiple charges. However, sources indicate he was given more than 48 hours to respond.
House Republicans Name French Hill to Financial Services Role
Politico reports that French Hill will chair the Financial Services Committee, tasked with guiding President-elect Donald Trump’s financial policies through Congress. Hill aims to promote crypto-friendly legislation, a priority that aligns with the outgoing Chair Patrick McHenry’s agenda.
Current State of Venture Capital
The New York Times highlights concerns over the changing landscape of venture capital, particularly in Silicon Valley. There is growing anxiety that venture funds have become too large and that there aren’t enough promising startups to invest in, affecting returns. Smaller firms find it challenging to compete against larger funds that can invest more, offer higher prices, and better handle losses.
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