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Trump’s recruitment of watchdog chiefs impeded by talk of regulatory cuts

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Trump’s recruitment of watchdog chiefs impeded by talk of regulatory cuts

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Republican enthusiasm for culling and combining the many US banking regulators is complicating efforts by the incoming administration of Donald Trump to find heads for those watchdogs.

The problem is particularly acute for the Consumer Financial Protection Bureau, which focuses on the way lenders treat customers. The CFPB has been a target of hostility from Republicans since its creation after the 2008 financial crisis. A number of experienced candidates have demurred when contacted about the position, people familiar with the search said.

“Republicans think the CFPB is unconstitutional, and even if you do make progress in protecting middle-class and low income Americans, the Democrats will never give you credit because you’re wearing the wrong colour jersey,” said a former senior financial regulator who is not interested in the job.

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Recruiting issues are becoming more serious because of growing ferment around consolidating banking regulatory and supervisory responsibilities that are currently spread among the US Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

Some potential candidates have been interviewed by Elon Musk and Vivek Ramaswamy, the bosses of Trump’s newly created advisory committee, the Department of Government Efficiency (Doge), and have been asked about streamlining regulation, people close to the process said.

Musk has called for eliminating the CFPB and Ramaswamy asserted last week on social media that it was “one of the easiest agencies to shut down”. The Wall Street Journal reported that some regulatory candidates have been asked whether it would be possible to eliminate the FDIC, which has protected bank depositors since the Great Depression.

The Trump transition team’s questions, combined with enthusiasm from the Republicans due to run key committees on Capitol Hill for lightening the regulatory load, could herald the first serious effort to reshape the guardrails for the banking industry since the 2010 Dodd-Frank law.

“I think the Trump team might be serious about this,” said Bill Isaac, a former FDIC chair, adding that he has talked to leading Capitol Hill players about his proposal to merge the OCC and the supervisory functions of the Fed and FDIC into a new regulator. “The system is broken.”

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Tim Scott, the Republican in line to chair the Senate Banking Committee, has concerns with the current structure of the US’s bank regulatory system, his spokesman said, but did not specify whether he supported consolidating banking regulators. Scott “looks forward to working with the incoming Trump administration to find solutions to streamline regulation, reduce red tape, and increase efficiency while ensuring the continued stability of our financial system.”

But experienced Washington hands point out that multiple prior attempts to consolidate the patchwork of banking regulators into a single super-watchdog have failed. In 2010, Republicans provided crucial votes to help kill the idea.

“Most regulatory scholars support some form of consolidation among bank regulators in the US, but every attempt at doing this has failed. After every financial crisis, there is more regulation and more regulators than there were before,” said Aaron Klein, a senior fellow at Brookings and former Treasury official under Barack Obama.

During Trump’s first term, the acting head of the CFPB Mick Mulvaney at one point refused to request any funding for the watchdog, but it eventually resumed normal operations.

“Congress is needed for any consequential structural changes and it is incredibly difficult to envision a scenario where this issue makes it on the agenda, let alone gets the Democratic support necessary for enactment,” said Isaac Boltansky, managing director at BTIG.

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Investor groups and former regulators have expressed alarm at the prospect of weakening the FDIC, noting that it is well known and popular with consumers, in part because most banks tout its deposit insurance as part of their advertising.

“FDIC has a perfect record of protecting insured deposits for over 90 years. Strong consumer confidence in the brand, providing stability during crises,” tweeted Sheila Bair, a former FDIC chair.

Patrick Woodall, managing director for policy at Americans for Financial Reform, said: “The FDIC stamp of approval has safeguarded depositors — and confidence in the banking industry — for nearly a century, while the CFPB has a strong track record of standing up for the little guy. Billionaire ideas about consumer protection and financial stability will do nothing for everyday people.”

Even Isaac said he opposes eliminating the FDIC as an independent agency, because of its emergency bank takeover responsibilities.

“I don’t think that makes any sense,” he said. The idea is to have the FDIC be an independent, bipartisan agency and the Treasury is anything but.”

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The Trump transition team did not reply to a request for comment.

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Waymo called the cops on teen riders, raising privacy concerns

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Waymo called the cops on teen riders, raising privacy concerns

A Waymo robotaxi drives in San Francisco’s North Beach neighborhood this week.

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Police in San Mateo, Calif., posted Monday on social media that they had apprehended a pair of teenagers from a Waymo driverless robotaxi after the company alerted authorities to suspected criminal activity. It’s the latest incident involving video surveillance of passengers and others by autonomous vehicles — raising questions about the limits of privacy in such vehicles.

The Facebook post by the San Mateo County Police said: “Parents do you know where your teens are? @waymo does!”

The 15-year-olds were allegedly drinking alcohol and shooting toy guns from the car, according to the police. They said Waymo’s systems detected behavior that then triggered a safety response, after which the company disabled the vehicle and contacted police.

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Waymo’s cars, equipped with an array of cameras, microphones and other sensors to monitor passengers and other nearby vehicles, are becoming more common in cities across the United States. Experts say the detention of the two teens in San Mateo highlights a potential — but not inevitable — trade-off between privacy and convenience. It also questions the extent to which companies similar to Waymo are required to hand over private data, including audio and video of passengers, in situations where a crime is suspected.

NPR reached out to Waymo, which is owned by Alphabet, the parent company of Google, for comment on the details of the San Mateo incident and how the company responded, but did not hear back. But on its website, the company says that as many as 29 cameras in its autonomous cars provide an all-around view and “are designed with high dynamic range and thermal stability, to see in both daylight and low-light conditions, and tackle more complex environments.”

“There already exist laws that govern duty to report or even duty to protect” for carriers such as Waymo, according to Alessandro Acquisti, a professor of information technology at the MIT Sloan School of Management. “The privacy problems arise when and if driverless carrier companies used such laws or ethical obligations as a pretext for blanket, indiscriminate accumulation of identifiable data for unspecified future purposes.”

That includes not just monitoring people inside the cars, but outside too. Take, for example, a hit-and-run investigation last year in Los Angeles. Media reported that the police inquiry was aided by video captured by a Waymo taxi that had a clear view of the crime. Critics suggested at the time that authorities were using the company’s vehicles as a mobile surveillance platform. And during 2025 protests in Los Angeles against Immigration and Customs Enforcement crackdowns, demonstrators vandalized Waymos, apparently angry that video recorded by the vehicles could be used by police, although there is no evidence that happened.

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Trump fires last members of election commission, inciting fears of midterm ‘chaos’

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Trump fires last members of election commission, inciting fears of midterm ‘chaos’

Donald Trump has terminated the remaining members of the independent, federal commission that assists election administration officials nationwide just a few months before the midterm elections, multiple outlets reported Thursday.

The remaining three commissioners of the four-member bipartisan commission ⁠were forced out on Thursday in different ways. The one Republican appointee resigned and the other ⁠two, Democratic appointees were notified of their terminations via email from ​the White House presidential personnel office.

“On ‌behalf of President ‌Donald J Trump, I am writing to inform you that your position ‌as Commissioner of the Election Assistance Commission is terminated, effective immediately. Thank you for your service,” the email, seen by Reuters, said.

The White House did not immediately respond to a request for comment.

The Election Assistance Commission serves as a “national clearinghouse of information on election ‌administration”, accredits testing laboratories and certifies voting systems, and maintains the national mail-voter registration form developed by the National ​Voter Registration Act of 1993, according to the commission’s website. The terminations follow Trump and top administration officials’ advocacy to change vote-by-mail requirements and investigations into the 2020 election outcome, which Trump lost to Democrat Joe Biden.

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“It is ⁠irresponsible and dangerous that this Administration remains dead set on ​causing chaos for ​our election officials across this ​country,” Arizona secretary of state Adrian Fontes said in a ​Thursday statement. “This ‌move undermines the integrity ​of nonpartisan ​election administration.”

The 2002 law that established the commission, the Help America Vote Act, states the president can appoint replacements to the commission.

It is unclear how Trump will move ahead with the commission.

Reuters contributed reporting

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Former Olympian pleads not guilty in reflecting pool vandalism charges

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Former Olympian pleads not guilty in reflecting pool vandalism charges

Former U.S. Olympian David Hearn (left) walks with his attorney Norman Eisen to speak to reporters and protesters gathered after his arraignment at the Superior Court of the District of Columbia in Washington, D.C. on Thursday.

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Former U.S. Olympic canoeist David Hearn pleaded not guilty to damaging the Lincoln Memorial Reflecting Pool in D.C. Superior Court Thursday morning.

Federal prosecutors charged Hearn with a single count of destruction of property causing more than $1,000 in damage to the pool.

Hearn has previously claimed, which his attorneys repeated during a short press conference outside the court, that he simply touched the water in the pool out of curiosity.

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The Trump administration had just completed a $14 million renovation of the pool.

But shortly after the work finished, peeling paint and algae gathered in the water. The remodel has been largely criticized as a massive failure and waste of taxpayer dollars.

Superior Court Judge Carmen McLean released Hearn on his own recognizance. His next hearing is scheduled for Aug. 5.

Norm Eisen, one of Hearn’s attorneys, spoke to reporters outside of court following the hearing. He said the administration is using Hearn as a “scapegoat … for their own failures.”

“It is not a crime to touch the reflecting pool, to touch water in the United States of America,” he said.

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Prosecutors say there is a host of evidence against Hearn.

This is a developing story.

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