Watchdog warns DOGE cuts threaten financial system

[BumRushDaShow]

Source: Axios

7 hours ago


A government watchdog has a new warning about DOGE personnel cuts at a key regulatory agency: Fewer workers could jeopardize bank oversight.

Why it matters: It's an example of how DOGE cost-cutting could have consequences beyond the targeted agency. In this case, the effects could ripple across the financial system.

What they're saying: The inspector general for the Federal Deposit Insurance Corporation — one of the nation's main bank regulators and the body that insures depositors' funds — said a smaller agency will have to contend with the same duties of a larger one: examining the health of 4,500 banks under its purview.

"With fewer examiners but the same responsibility to conduct statutorily required exams in 2025, it may be difficult for the FDIC to complete these examinations by the end of the year," the inspector general said in a new report.

"Safety and soundness examinations are especially important given potential risks in the banking sector," the report notes — calling out banks sitting on huge unrealized losses, which sparked the 2023 banking crisis (that, and a concentration of uninsured deposits).

The report cites an FDIC manual that says its examinations are key to "ensure public confidence in the banking system."

In December, the inspector general warned about insufficient staffing for the FDIC to adequately carry out another of its key duties: taking over a failed bank's operations and assets.

By the numbers: The FDIC reduced staffing by 9% to less than 5,950 workers since January.

Additionally, about 450 employees — or 7% of all FDIC employees — accepted the administration's "deferred resignation" offer.

About 160 probationary workers were dismissed, while roughly 103 employees left for reasons unrelated to DOGE.

Read more: https://www.axios.com/2025/03/24/fdic-doge-banks-regulator

[LiberalArkie]

1. None of the pesky people warning about Lehman's or Silverados in the woodworks.

[SergeStorms]

2. Threatening the financial system is the goal.

It'll make their crypto-currencies increase in value, and It'll make oversight of their thievery less stringent.

It's a win win for TruMusCo.