Do Financial Regulators Need More Presidential Oversight?
- May 23, 2025
- CBR - Clark Center Panels
Among the more than 100 executive orders that US President Donald Trump issued in the first three months of his current term in office, several sought to reform the way US regulatory agencies operate. One, entitled “Ensuring Accountability for All Agencies,” announced greater presidential oversight of regulators that have traditionally operated with a degree of independence, including financial authorities such as the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The order mandates that all agencies submit new regulations to be reviewed by the White House’s Office of Information and Regulatory Affairs “in order to improve the administration of the executive branch and to increase regulatory officials’ accountability to the American people.” Whether or not it achieves those goals, how will it affect financial stability? Chicago Booth’s Kent A. Clark Center for Global Markets polled its panel of finance experts to find out.
John Campbell, Harvard
“In principle, central coordination of the federal regulatory agencies could be helpful—but in practice, White House influence on regulators will subordinate financial stability to other, political objectives.”
Response: Strongly disagree
Janice Eberly, Northwestern
“Some form of independence is meant to strike a balance, maintaining regulatory accountability but limiting potential politicization. Putting an agency under direct executive branch control removes that buffer and raises the risk of instability.”
Response: Strongly disagree
Ralph S. J. Koijen, Chicago Booth
“It depends on the nature of the intervention. For insurance, where the regulatory environment is fragmented due to state-level regulation, federal oversight can help. Such initiatives can also help to harmonize and coordinate regulation of banks and insurers.”
Response: Uncertain
Amit Seru, Stanford
“Regulatory overlap creates confusion, with multiple agencies interpreting and enforcing the same rules differently. Reducing duplication could improve enforcement and reduce policy uncertainty. However, centralizing oversight under the White House is not the solution.”
Response: Strongly disagree
More from Chicago Booth Review
More from Chicago Booth
Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.