The White House attempts to strengthen control over financial regulatory agencies! According to a report by Bloomberg, starting next Monday, independent agencies including the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Deposit Insurance Corporation will be brought under the control of the White House. Any rules proposed by these agencies must obtain approval from the Trump administration. The report also stated that the Federal Reserve would be affected. According to Trump's orders and draft guidance, the monetary function of the Federal Reserve will remain independent, but any rules as a banking regulator must be submitted for review by the White House. Recently, there have been reports that the Trump administration plans to cut nearly 90% of the staff at the Consumer Financial Protection Bureau (CFPB), laying off 1,500 employees and retaining only about 200. The White House attempts to bring financial regulatory agencies under its control. According to a Bloomberg report on April 18, the White House is stepping up efforts to place independent agencies such as the SEC and CFTC under its control. The report stated that the Office of Information and Regulatory Affairs (OIRA) in the White House issued a memorandum aimed at ending their independence to various regulatory agencies on Thursday. In this 25-page document, the White House requires these agencies to involve the White House Regulatory Office in all stages of rulemaking. At the same time, each independent agency must appoint a regulatory policy official - this is usually someone recognized by the Trump administration - by next Monday. This memorandum aims to implement Executive Order 14215 signed by Trump in February. According to Trump's personal interpretation of the U.S. Constitution, he believes he has the power to supervise and control all agencies within the administrative branch. The impact of this executive order is far-reaching, as at least 20 committees and councils established by Congress, which were largely designed to operate independently of presidential jurisdiction, will return to White House oversight, covering a wide range of economic activities such as finance, energy, labor, and media. In addition to the SEC and CFTC, affected agencies also include the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau, among others. The report pointed out that according to Trump's orders and draft guidance, the Federal Reserve's monetary function, namely the work of the Federal Open Market Committee, remains independent, but any rules as a banking regulator must be submitted to the White House for review. Despite this, the Federal Reserve still poses a special legal challenge to the Trump administration. Peter Shane, an honorary law professor at Ohio State University, interpreted that the U.S. Supreme Court may not yet accept Trump's administrative theory because it would undermine the independence of the Federal Reserve and destabilize global markets. Shane recently wrote in the Washington Monthly: "It would be an extreme move for the United States to have no independent institution controlling the money supply. However, applying Trump's command solely to bank regulation does not fully resolve this issue, as Federal Reserve officials cannot be granted 'half the authority' or 'have half their duties revoked.'" The Consumer Financial Protection Bureau plans to lay off nearly 90% of its staff. Earlier, there were reports that the Trump administration planned to cut nearly 90% of the employees at the Consumer Financial Protection Bureau (CFPB), significantly reducing the scale of this regulatory agency aimed at protecting American consumers from financial fraud and abuse. Several media outlets reported on Thursday that approximately 1,500 employees at the CFPB will be laid off, leaving the agency with only about 200 people. At the end of last year, the CFPB had around 1,700 employees. Employees began receiving layoff notices on Thursday. "The CFPB determines that your position will be eliminated, and your employment relationship will be terminated under the Reduction in Force (RIF) procedure," read an email sent to CFPB staff. CFPB Acting Director Russ Vought stated in a notice that this layoff is "necessary to restructure the CFPB's operations to better reflect the agency's priorities and mission." Vought said that employees affected by the layoffs can still access the work system until Friday night Eastern Time, and they will officially "sever" their employment relationship with the agency in mid-June. Reportedly, a CFPB official who was laid off and granted anonymity for discussing the layoffs said that as of late Thursday afternoon, layoff notices seemed to still be coming out in batches. "Employees are being laid off in groups." The Consumer Financial Protection Bureau was established after the 2008 financial crisis and has long been a target of Republican lawmakers and billionaires like Musk and heavyweight figures on Wall Street, who believe that its investigations are overly hostile to lending institutions and banks. Some media outlets commented that this shift may also signal favorable signals for the development of financial technology. Musk is planning to introduce peer-to-peer payment services on his social platform X and announced cooperation with Visa earlier this year. Such businesses that should have been subject to CFPB regulation will no longer be a priority for the agency. Elizabeth Warren, a Democratic senator from Massachusetts and one of the driving forces behind the creation of the CFPB, angrily pointed out in a statement: "Trump is preventing the agency from fulfilling its responsibilities and unable to help Americans deceived by large banks and corporations." Warren described this layoff plan as "another attack by this lawless administration on consumers and our democratic system," and vowed to "fully resist." Source: China Securities Journal Editor: Ye Shuyao Proofreader: Ran Yanqing Copyright Notice All original content on the Securities Times platforms, unless otherwise authorized in writing, may not be reproduced or used by any entity or individual. 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