New reports claim President Donald Trump and Department of Government Efficiency (DOGE) head Elon Musk may target bank regulators next as the federal government reduces spending via layoffs. According to these reports, the U.S. Department of the Treasury is working on a proposal that would streamline financial sector regulators, returning more power to the agency.
Insiders connected to this process claim the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) could see some of the biggest impacts from this decision. The move would make sense as Treasury Secretary Scott Bessent has pushed for more power in the department. It also aligns with President Trump’s ongoing battle against federal government bloat.
While President Trump may move forward with plans to streamline banking regulators, there’s no guarantee the order will stick. The Trump administration is already caught up in legal battles over its previous job cuts and firings. It’s possible these plans could bring about more legal trouble for the administration.
What Does This Mean for the Stock Market?
President Trump has consistently argued that cutting federal government spending will benefit the U.S. economy. The idea here is that less enforcement of regulations will allow for economic growth and businesses won’t fear heavy-handed government oversight. That might be true and could help balance the economy as the President’s ongoing trade war heats up and stokes fears of a recession.
Which Stocks Are Worth Buying?
With this news focused on the financial sector, investors will no doubt be thinking about bank stocks. Turning to the TipRanks stock comparison tool, traders will find insight into the biggest stocks in this market.
Bank of America (BAC) and Citi (C) stand out as two bank stocks with Strong Buy ratings. They both also have strong upside potential at roughly 22%.
