The US financial system could pay a “high price” if the Trump administration slashes regulations on banks too aggressively, the outgoing chair of the Federal Deposit Insurance Corporation has warned.
Martin Gruenberg told the Financial Times that “short-term changes with the goal of realising short-term results in the the financial sector can have real costs and in some sense undermine our long-term purpose”.
Gruenberg’s warning comes as president-elect Donald Trump has vowed to cut rules and bureaucracy as part of a plan to boost the US economy. Trump allies Elon Musk and Vivek Ramaswamy, the bosses of Trump’s newly created government efficiency office, have expressed interest in streamlining US financial regulators, the FT has previously reported.