Davis Polk partner and Financial Institutions practice head Margaret Tahyar was quoted in IFLR discussing potential consolidation of the bank regulators under the Trump administration.

Margaret noted that President Trump’s strategy is grounded in recent Supreme Court precedent. “The goal is to overturn Humphrey’s Executor [a Supreme Court ruling from 1935], which has been the foundation of agencies’ independence,” she said.

She added that since 1913, over 100 proposals to consolidate banking regulators have failed. “The last serious attempt was in 1998 under President Clinton – the so-called Treasury Blueprint – but it wasn’t fully implemented,” Margaret explained. “Although the idea of consolidation has been around for a long time, it’s being pushed further than before by the current administration.”

Margaret highlighted that at a federal level, the U.S. has five agencies overseeing the banking sectors, plus the SEC, the Commodity Futures Trading Commission and state-chartered banks. “There’s a lot of redundancy in the system,” she said.

Discussing what it means for new regulations, Meg noted, “The re-proposal of Basel III endgame is unlikely this year – it’s in deep hibernation.”

She concluded that consolidating agencies could lead to more efficient and smarter regulations – “not less, but smarter.”

“US banking sector: ‘Now is the time to gain access’,” IFLR (March 4, 2025) (subscription required)

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