Amid the latest round of workforce reductions initiated by the Trump administration, three key financial regulatory bodies are undergoing substantial restructuring. According to Bloomberg, over 2,300 employees from the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Securities and Exchange Commission face potential layoffs. These cuts represent some of the most drastic measures in recent decades, impacting crucial oversight functions for banks, trading firms, and public markets. The affected agencies are adapting by reorganizing their teams and modifying policies to accommodate the changes.

The Office of the Comptroller of the Currency plans to merge supervision teams that were previously specialized based on bank size, while the Securities and Exchange Commission has restructured its regional offices. Meanwhile, the FDIC is reportedly reconsidering its approach to bank supervision, though no major announcements have been made yet. This shift aligns with President Trump's pre-inauguration signals indicating a desire to reduce or consolidate financial regulatory agencies.

Prior discussions suggested abolishing the FDIC and transferring deposit insurance responsibilities to the Treasury Department, eliminating or limiting the Consumer Financial Protection Bureau's role to consumer education, and potentially merging the FDIC, OCC, and Federal Reserve into one entity overseeing banks. In March, the Treasury Department announced an extensive layoff plan, although specific numbers remain undisclosed.

In April, Acting CFPB Director Russell Vought proposed reducing the agency’s workforce by 90%, leaving only 200 employees. However, this decision was temporarily halted by Judge Amy Berman Jackson, who required a detailed assessment proving the necessity of such cuts. Legal proceedings regarding these layoffs are ongoing.

These developments underscore the administration's commitment to reshaping the financial regulatory landscape. As personnel cuts continue, the effectiveness and structure of these vital institutions will be closely monitored by stakeholders and the public alike. Despite challenges, regulators aim to maintain functionality and uphold their missions amidst significant organizational changes.