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The consumer watchdog agency was formed in the wake of the 2008 financial crisis. Elon Musk wants to “delete” it.
The Consumer Financial Protection Bureau halted much of its work to investigate and penalize corporate wrongdoing on Monday, after Treasury Secretary Scott Bessent — tapped to lead the watchdog on an acting basis — ordered an agency-wide review to “promote consistency” with the new Trump administration.
Shortly after assuming the post, Bessent and his aides ordered bureau staff in an email to cease crafting regulations, enforcing rules, conducting probes or providing “public communications of any type,” according to a copy obtained by The Washington Post, which said he had instituted the ban “effective immediately.”
The missive appeared to herald a stark shift for the CFPB, a powerful agency formed in the wake of the 2008 banking crisis to protect consumers from unfair, deceptive or predatory financial practices. It came on the same day that President Donald Trump named Secretary of State Marco Rubio acting administrator of another agency, the U.S. Agency for International Development, which the administration moved to shutter as part of a broad and contested effort to slash government spending and regulation.
The financial watchdog is a longtime target of Republicans’ scorn: Party lawmakers have threatened for years to defund the CFPB or neuter its powers — and tech billionaire Elon Musk, who is advising Trump on his reconfiguration of American government, has called on Congress to “delete” the bureau entirely.
Under President Joe Biden, the CFPB had been active and aggressive: Its leader, Rohit Chopra, issued a wide array of rules to crack down on predatory lending, reduce the burden of medical debt and cut fees that customers pay when they fall behind on their credit card bills or overextend their checking accounts. Chopra also expanded the bureau’s watch over Apple, Google and other tech giants as their digital payment apps grew more popular with consumers.
Trump similarly moved to restrain the CFPB during his first term. His acting director then — former congressman Mick Mulvaney — at one point requested no new money for the agency and settled its pending enforcement actions, sometimes for as little as $1.
This time, Republicans have promised to pursue even more significant changes to the CFPB, targeting its leadership structure, investigative powers and funding source; the bureau gets its money from the Federal Reserve. Last week, Sen. Ted Cruz (R-Texas) unveiled the latest bill to curtail its funding, describing the CFPB as an “unelected, unaccountable bureaucratic agency.”
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla
Comments
Our word in international agreements is worth sh**.
Meanwhile China and Russia are celebrating. Why would any country try to partner with USA when they see they will be treated like this?
https://www.nytimes.com/2025/02/03/us/politics/musk-federal-government.html
try and stop me w your slow weak institutions, just try
https://www.aba.com/about-us/press-room/press-releases/new-cfpb-acting-director-2025
Always look behind the curtain.
When I was involved in Community Organizing, we learned that the first job is to define the turf, the environment. Get people to think in terms of the way you are framing the issues, and you've won. That statement from ABA is Exhibit A: how to deceive while sounding diplomatic. Dreadful smelling feces. I can catch the odor right off my screen.
IMO, Scott Bessent is about the best replacement one can hope for given the circumstances. I do not think this is a temporary arrangement. During his first Term, Trump had CFPB run by an Acting Director for more than a year. He also had an Acting Chief of Staff for more than a year.
This is just another Regulatory Capture by the new MAGA. We just have to wait for the old MAGA to wake up and realize the transfer of their wealth and rights to the new MAGA.
The best I can do is not react to every move and tweet and stay focused so I am aware of what really is going on.
just wait
https://www.wired.com/story/elon-musk-associate-bfs-federal-payment-system/
As CFPB tackled consumer finance issues, it wasn't a popular agency with banks or lenders.
Then, the way it was originally constituted, it's actions should be views differently for 2011-2020 and after 2020.
As initially constituted, CFPB had funding outside of the federal budget (i.e. from Federal Reserve operations) and the CFPB Director(s) couldn't be fired/replaced by the President without cause (although President nominated and Senate confirmed). After various court challenges, Supreme ruled in 06/2020 that CFPB funding was constitutional, but the CFPB Director served at the will of the President (so, he/she could be replaced without providing any reasons).
So, CFPB actions during 2011-20 period were different when it's Director felt truly "independent", but after 2020, its actions were a bit different due to service-at-Presidential-will. So, in the post-2020 period, it has been a semi-independent agency.