Trump Now Scraps Biden Order That Prevents A Monopoly • FrankNez Media

On August 15, 2025, President Donald Trump signed an executive order rescinding a Biden-era directive that had imposed stricter scrutiny on bank mergers and acquisitions (M&A), a move hailed by industry leaders but criticized by consumer advocates as a step toward unchecked consolidation.

The decision, reported by Banking Dive, reverses a July 2021 executive order that directed federal regulators to rigorously evaluate M&A deals for their impact on competition, consumers, and communities.

Tougher restrictions aimed to curb the potential of a monopoly to form.

Trump’s Federal Trade Commission (FTC) Chair, Andrew Ferguson, described the Biden order’s approach as having a “flawed philosophical underpinning” that fostered “undue hostility” toward mergers, according to Banking Dive.

The revocation signals a more permissive environment for bank M&As, potentially accelerating deals but raising concerns about reduced competition and consumer protections.

Details of the Executive Order Reversal

The Biden administration’s 2021 order, signed on July 9, 2021, aimed to promote competition by encouraging regulators like the Federal Reserve, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) to closely scrutinize M&A transactions.

It emphasized factors like market concentration, job impacts, and consumer access to banking services, leading to delays in approving high-profile deals, such as Capital One’s $35.3 billion acquisition of Discover, which faced regulatory hurdles until December 2024, per Banking Dive.

Trump’s executive order, signed on August 13, 2025, eliminates these heightened standards, arguing they stifled growth and innovation, particularly for smaller banks seeking economies of scale.

Rep. French Hill (R-AR), chair of the House Financial Services Committee, praised the move, stating, “Small banks depend on mergers to grow, innovate and better serve their communities.”

The American Bankers Association echoed this sentiment in an August 13, 2025, X post, calling the Biden-era rule “flawed” and urging regulators to establish a framework that promotes competition.

The order follows Trump’s earlier reversal of a 2024 OCC rule in June 2025, which had introduced burdensome merger review standards, further signaling a deregulatory push.

Industry and Consumer Reactions

The banking industry has largely welcomed the change, with executives anticipating faster deal approvals.

Banking Dive noted in a January 31, 2025, report that regulators approved several high-profile M&As in December 2024 and January 2025, including deals involving Columbia, Eastern, and Cadence Bank, suggesting a loosening of restrictions even before the latest order.

Rep. Andy Barr (R-KY) argued in April 2025 that the Biden-era standards discouraged “responsible growth” and prevented banks from passing cost savings to consumers through better rates and expanded credit access, as reported by Banking Dive.

However, consumer advocates and some Democrats expressed alarm.

Graham Steele, a former Biden Treasury official, told Politico that the deregulatory push could favor industries like fossil fuels and crypto while neglecting marginalized communities.

Critics argue that weaker M&A oversight could lead to greater market concentration, potentially raising fees and reducing access to banking services in underserved areas, as seen in past consolidations like Wells Fargo’s acquisitions, per Reuters.

Broader Context of Trump’s Banking Policies

The M&A order revocation is part of Trump’s broader deregulatory agenda, which includes an August 8, 2025, executive order targeting “debanking” practices, where banks allegedly denied services to conservatives, gun manufacturers, and crypto firms, per Banking Dive.

Trump claimed personal experience with debanking, alleging in a CNBC interview that JPMorgan and Bank of America rejected his deposits post-January 6, 2021, though both banks denied closing accounts for political reasons.

The debanking order, which removes “reputational risk” from bank evaluations, has been praised by industry groups but criticized for potentially shielding controversial clients, per WIRED.

The banking sector is also navigating other Trump policies, such as his January 24, 2025, executive order embracing stablecoins while banning central bank digital currencies (CBDCs), citing risks to financial stability and privacy.

Bank of America CEO Brian Moynihan, speaking in February 2025, noted that Trump’s debanking stance reflects broader concerns about over-regulation, per Banking Dive.

These moves contrast with the Biden administration’s focus on consumer protections, exemplified by the Consumer Financial Protection Bureau’s (CFPB) now-reversed $5 overdraft fee cap.

How This Affects the Banking Industry

The revocation of Biden’s M&A order is expected to streamline bank mergers, potentially boosting activity among smaller institutions seeking to compete with giants like JPMorgan and Wells Fargo.

However, analysts warn of risks, including reduced competition and branch closures in rural areas, as seen in past M&As, per Banking Dive.

The CBO estimated in 2024 that stricter merger reviews saved consumers $1.2 billion annually through preserved competition, a benefit now at risk, per Reuters.

With Trump’s approval rating at 39% per an ABC News/Washington Post/Ipsos poll, the deregulatory push could face political pushback, especially if consumer costs rise.

Democrats, wary of the Federal Reserve’s independence after Trump’s threats to oust Chair Jerome Powell, may seek oversight.

As the banking sector braces for increased M&A activity, the balance between growth and consumer protection will remain a contentious issue heading into the 2026 midterms.

But I’m curious to know what you think, leave your thoughts below.

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