By Michelle Price

WASHINGTON (Reuters) – If Republican former President Donald Trump wins the U.S. election on Nov. 5, he is expected to swiftly overhaul the country's financial regulators, which under Democratic President Joe Biden have pursued a slew of stringent new rules for banks, private funds, and other lenders. Here's how Trump could take control of the agencies upon taking office on Jan. 20, 2025.

US SECURITIES AND EXCHANGE COMMISSION CHAIR GARY GENSLER

Trump has said he'll fire SEC chair Gary Gensler on day one. While most legal scholars agree the president does not have the power to fire the SEC chair outright, he can replace the chair with another commissioner who can serve in an acting capacity until the Senate confirms a permanent replacement.

In Trump's case, that would most likely be one of the two Republican commissioners, Hester Peirce or Mark Uyeda. Gensler could continue on as a commissioner until his term ends in 2026, although that would be highly unusual.

COMMODITY FUTURES TRADING COMMISSION CHAIR ROSTIN BEHNAM

Similarly, the law does not explicitly state whether the president can remove the CFTC chair, according to the Government Accountability Office. However, Trump would have the power to replace CFTC chair Rostin Behnam with another commissioner, likely Republican CFTC commissioner Summer Mersinger or Caroline Pham.

CONSUMER FINANCIAL PROTECTION BUREAU

In 2020, the U.S. Supreme Court granted the president more authority over the Consumer Financial Protection Bureau, allowing for the termination of its director at will.

Trump is expected to remove Director Rohit Chopra on day one, but who can serve as acting director has been historically contentious. The Trump administration in 2017 claimed it could install an acting CFPB director under the 1998 Federal Vacancies Act, while the agency's deputy director, Leandra English, argued she was the rightful interim director under the 2010 Dodd-Frank law.

This dispute went to court, and a federal judge sided with the Trump administration. The appeals court did not adjudicate the case.

CFPB experts believe Trump could successfully cite both the circuit court ruling and the 2020 U.S. Supreme Court decision in asserting his right to appoint an interim director.

ACTING COMPTROLLER OF THE CURRENCY MICHAEL HSU

Trump would have the power to immediately replace Acting Comptroller of the Currency Michael Hsu with another acting comptroller, who could run the agency potentially for years until a permanent comptroller is confirmed by the Senate.

FEDERAL DEPOSIT INSURANCE CORPORATION

The FDIC situation is more complex. Following a sexual harassment scandal, Democratic FDIC chair Martin Gruenberg has declared he will step down once Congress confirms his replacement. However, with the Senate delaying the confirmation of Democratic nominee Christy Goldsmith Romero, the timeline remains unclear.

Whether the president can remove the FDIC chair only for cause is debated among legal experts, although some Republican lawmakers have asserted that Biden could have fired Gruenberg due to identified leadership failings in an independent probe. Gruenberg has stated that he never recalled acting inappropriately and has vowed to implement the report's recommendations for improving the FDIC's culture.

Regardless of who is chair in January, by replacing Chopra and Hsu, Trump could give control of the agency to Republicans. The board's Republican majority could block rulings brought by the chair and force votes on other issues that the chair may oppose. Democrats enacted a similar strategy in 2021 to push through a bank merger policy review.

U.S. FEDERAL RESERVE VICE CHAIR FOR SUPERVISION MICHAEL BARR

The president can only fire Fed governors for cause, meaning Barr could maintain his role as the central bank's regulatory chief until his term ends in July 2026.

However, by replacing Hsu and packing the FDIC board, Trump could gain control of a significant portion of the bank regulatory agenda and potentially block any Fed projects that involve cooperation with the other two agencies. This could include contentious initiatives like Basel Endgame capital hikes, regional banks' requirements for long-term debt issuance, and new liquidity benchmarks for stress periods.