The White House has intensified its efforts to dismantle the Consumer Financial Protection Bureau (CFPB), a powerful federal watchdog agency formed after the 2008 financial crisis to protect consumers from scams and corporate abuse.
In an email obtained by The Washington Post, acting director Vought directed CFPB workers to stay home, effectively halting ongoing investigations and shutting off access to millions of dollars in federal funds. This move has sparked fear among supporters that Trump may lay off staff or shut down the agency entirely.
The CFPB has been a thorn in the side of Republicans, who have criticized its regulations and punishments as overreaching. Billionaire Elon Musk has also attacked the agency, particularly as it seeks to expand its jurisdiction to include major tech companies.
Despite these efforts, the CFPB remains an important check on the financial system. Senators and advocates are urging Congress to intervene and protect the agency from Trump’s budget plans.
In a video statement, Senator Elizabeth Warren called on lawmakers to “take the lead” in defending the CFPB, citing its track record of securing $20 billion in refunds for Americans.
The CFPB has faced criticism from Republicans and corporate interests, including Musk’s social media site X. However, supporters argue that the agency is essential for protecting consumers and holding corporations accountable for their actions.
The White House has also attacked the CFPB, characterizing its recent regulations as “woke” and arguing that it has overstepped its authority. However, critics see this move as an attempt to undermine the agency’s independence and limit its ability to regulate banks and financial institutions.
As the battle over the CFPB continues, one thing is clear: the future of this critical agency hangs in the balance, and lawmakers must act to protect it from Trump’s budget plans.
Source: https://www.washingtonpost.com/business/2025/02/10/white-house-targets-cfpb