Trump official orders consumer protection agency to stop work
Washington — The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down an agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought, the newly installed director of the Office of Management and Budget, directed the CFPB, in a Saturday night email confirmed by The Associated Press, to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama pushed to include it in the 2010 financial reform legislation that followed the 2007-2008 financial crisis. The email also ordered the bureau to “cease all supervision and examination activity.” Since the CFPB is a creation of Congress, it would require a separate act of Congress to formally eliminate it. But the head of the agency has discretion over what enforcement actions to take, if any. Yet Elon Musk commented, “CFPB RIP” on social media site X on Friday. And the CFPB homepage on the Internet was down Sunday, replaced by a message reading “page not found.” Also late Saturday, Vought said in a social media post that the CFPB would not withdraw its next round of funding from the Federal Reserve, adding that its current reserves of $711.6 million are “excessive.” Congress directed the bureau to be funded by the Fed to insulate it from political pressures. “This spigot, long contributing to CFPB’s unaccountability, is now being turned off,” Vought said on X. The CFPB says that it has obtained nearly $20 billion in financial relief for U.S. consumers since its founding in the form of canceled debts, compensation, and reduced loans. Last month, the bureau sued Capital One for allegedly misleading consumers about its offerings for high-interest savings accounts — and “cheating” customers out of more than $2 billion in lost interest payments as a result. Dennis Kelleher, president of Better Markets, an advocacy group, said, “that’s why Wall Street’s biggest banks and Trump’s billionaire allies hate the bureau: it’s an effective cop on the finance beat and has stood side-by-side with hundreds of millions of Americans — Republicans and Democrats — battling financial predators, scammers, and crooks.” The administration’s move against the CFPB also highlights the tensions between Trump’s more populist … “Trump official orders consumer protection agency to stop work” →