Factbox-How Trump could overhaul US financial authorities if he wins on November 5 By Reuters

By Michelle Price

WASHINGTON (Reuters) – If former Republican President Donald Trump wins the U.S. election on Nov. 5, he is expected to quickly overhaul the country’s financial regulators, which under Democratic President Joe Biden pursued a series of tough new rules for banks, private funds and other lenders. Here’s how Trump could take control of the agencies when he takes office on January 20, 2025.

US SECURITIES AND STOCK COMMISSION CHAIRMAN GARY GENSLER

Trump said he would fire SEC Chairman Gary Gensler on day one. While most jurists agree that the president does not have the power to remove the SEC chairman, the president can replace the chairman with another commissioner who can serve in an acting capacity until the Senate confirms a permanent replacement.

In Trump’s case, it would most likely be one of the two Republican commissioners, Hester Peirce or Mark Uyeda. Gensler could continue as commissioner until his term ends in 2026, though that would be highly unusual.

CHAIRMAN OF THE COMMODITY FUTURES TRANSLATION COMMISSION ROSTIN BEHNAM

Similarly, the law does not explicitly say whether the president has the power to remove the CFTC chair, according to the Government Accountability Office. But Trump would have the power to replace CFTC Chairman Rostin Behnam with another CFTC commissioner, likely to be either Republican CFTC Commissioner Summer Mersinger or Caroline Pham.

BUREAU OF CONSUMER FINANCIAL PROTECTION

In 2020, the US Supreme Court gave the president more authority over the Consumer Financial Protection Bureau, including giving it the power to fire its director at will.

Trump is expected to remove director Rohit Chopra on day one, but the question of who can serve as acting director has historically been contentious. The Trump administration in 2017 asserted that it had the power under the federal Vacancies Act of 1998 to install an interim CFPB director, while the agency’s deputy director at the time, Leandra English, argued that under of the 2010 Dodd-Frank Act that created the agency, she was its acting law director.

The extraordinary dispute has reached court, and a federal judge in Washington has sided with the Trump administration. The Court of Appeal did not hear the case.

CFPB experts believe Trump could successfully cite both the circuit court decision and the 2020 U.S. Supreme Court decision to assert his right to appoint the acting director.

INTERNAL COMPTROLLER OF THE CURRENCY MICHAEL HSU

Trump would have the power to immediately replace acting Comptroller of the Currency Michael Hsu, the national bank regulator, with another acting comptroller. That person could lead the agency, potentially for years, until the Senate confirms a comptroller.

FEDERAL DEPOSIT INSURANCE CORPORATION

The FDIC’s situation is more complex. In the wake of a sexual harassment scandal at the agency, Democratic FDIC Chairman Martin Gruenberg has said he will resign once Congress confirms his replacement. But with the Senate dragging its feet on confirming Democratic Biden nominee Christy Goldsmith Romero, it remains unclear when that will be.

The question of whether the president can remove the FDIC chairman just for cause is an open one, according to legal experts, although some Republican lawmakers have argued that Biden could have fired Gruenberg based on leadership deficiencies identified by an independent investigation into the scandal. Several FDIC employees were said to have reported that Gruenberg was prone to losing his temper and had an “aggressive” management style.

Gruenberg said he never recalled acting inappropriately and vowed to implement the report’s recommendations to improve the FDIC’s culture.

Regardless of who is president in January, by replacing Chopra and Hsu, the other two Democrats on the five-member FDIC board, Trump could hand control of the agency to Republicans. The board’s Republican majority could block regulations brought by the president and force votes on other issues the president might oppose.

Democrats made a similar move in 2021, when they bypassed then-Trump appointee Jelena McWilliams and voted through an overhaul of the bank merger policy, despite her protests.

US FEDERAL RESERVE SUPERVISORY VICE PRESIDENT MICHAEL BARR

The president can only fire Fed governors for cause, meaning Barr could remain in his role as the central bank’s chief regulator until his term expires in July 2026.

But by replacing Hsu and packing the FDIC board, Trump could gain control of much of the bank regulatory agenda and block any Fed projects the central bank must work on with the other two agencies. These could include the controversial Basel Endgame capital increases, plans to require regional banks to issue more long-term debt and new requirements to ensure banks have enough liquidity in times of stress.