Deputy Secretary Michael Faulkender recently addressed banking leaders at the U.S. Bancorp Fly-In Meeting, highlighting key priorities for the Treasury Department and the Administration under President Trump. Faulkender emphasized his commitment to modernizing financial regulations to support economic growth and innovation.
Reflecting on his past experiences, Faulkender noted his role in implementing the Paycheck Protection Program during the COVID-19 pandemic and now serving as the Chief Operating Officer of the Treasury Department. He reiterated Secretary Bessent's statement that "when the world is in trouble, they look to 1500 Pennsylvania Ave."
Faulkender outlined several core components of the Administration's economic agenda, including reciprocal trade, a pro-growth tax code, and reducing excessive regulation. He highlighted that in just over 100 days since taking office, 464,000 new jobs were added to the economy.
A significant focus of his remarks was on deregulation within the financial sector. He argued that banks have been burdened by regulatory requirements and called for a modernization effort to align bank regulation with current economic needs.
"Our guiding principles are rooted in President Trump’s focus on restoring common sense to government," Faulkender stated. He also mentioned an executive order by President Trump requiring federal financial agencies to submit regulatory actions for review.
Faulkender advocated for a more unified approach among regulators through mechanisms like the Financial Stability Oversight Council and committed Treasury's attention to financial regulatory reform.
He stressed that regulations should derive from clear statutory mandates while being efficient and fair. In terms of supervision, he urged a shift away from reputational risks toward focusing on material financial risks.
The Deputy Secretary concluded by encouraging input from banking professionals on any regulatory practices hindering lending activities or access to financial services.
"Together, we can bring about the Golden Age that the President strives to realize for our great nation," Faulkender said in closing remarks.
