Trump Team Eyes Major Cuts to Bank Regulation, Sparking Economic Concerns

U.S. Treasury Secretary Janet Yellen has cautioned the incoming Trump administration against making radical changes to the current bank regulatory framework, emphasizing the importance of maintaining oversight on banks' capital, liquidity, and risk-taking. Yellen acknowledged the system's imperfections but warned that reducing regulation could lead to financial instability, referencing past bank failures like Silicon Valley Bank and Signature Bank. She expressed concern over reports that Trump's team might seek to reduce or eliminate top bank regulators, stressing the need for appropriate supervision and deposit insurance to prevent financial crises.