FDIC is rescinding a policy that strengthened bank merger. While the current policy was not perfect, it had implemented necessary regulatory procedures to assess whether mergers were in the best interest of consumers, competition, and financial stability.

Read Better Markets’ comment letter: The FDIC’s Merger Policy Protects Main Street Americans and the Financial System and It Should Not Be Withdrawn

The SEC announced that it was expanding the opportunities for companies planning public offerings to submit draft registration statements for nonpublic review. The announcement means that more companies will be able to delay providing business information relevant to their planned public offering to the public.

The SEC restructured its regional offices into three regions, each reporting to a deputy director of enforcement. The dismantling of the crypto unit endangers investors because crypto is rife with frauds, scams, and abuses.

FDIC delayed the implementation of a key depositor protection rule that requires banks to provide clear signs of deposit insurance to bank customers. Abuse of the FDIC sign and false claims of deposit insurance by nonbanks and crypto firms have been rampant and have harmed countless consumers who thought their deposits were protected by FDIC insurance when they were, in fact, not protected. This delay in compliance until 2026 for a rule that was finalized in 2023 will only allow more consumers to be misled and tricked by deceptive claims of deposit insurance, particularly on digital platforms.

Read Better Markets’ statement here. 

Staffing cuts come at a time when the FDIC already faces a shortage of bank examiners and is facing culture problems in the agency which have hurt morale. Moreover, the agency already was facing a large wave of retirements of some of its most senior, most experienced staff. A 2023 inspector general report warned that 38% of FDIC employees would be eligible for retirement by 2027, which will further weaken regulatory oversight.

The CFPB signals that it will continue certain enforcement actions—so far, especially those involving servicemembers and claims under the Military Lending Act.