Senator Elizabeth Warren expressed alarm over the shutdown of the Consumer Financial Protection Bureau (CFPB), which she helped create in 2010. The bureau was established to protect consumers from financial abuse, and its closure has sparked controversy.
Warren accused President Donald Trump’s administration of trying to sideline the CFPB’s enforcement actions, particularly against Tesla CEO Elon Musk. She claimed that Musk is using his influence to eliminate regulations on businesses, including his own auto loan business.
The CFPB terminated contracts with multiple expert witnesses in recent days, suggesting it no longer plans to pursue enforcement cases against financial institutions accused of harming consumers. The watchdog did not respond to a request for comment.
Warren argued that the CFPB’s termination is an attempt to “do by fiat what opponents were unable to do in Congress or the courts.” She claimed that Republicans are trying to eliminate the agency because it is “damn popular” with Democrats, independents, and many Republicans who oppose unfair financial practices.
Conflict of interest concerns have been raised over Musk’s role in shutting down the CFPB. His business empire stands to gain from reduced regulations, and he has argued that the CFPB is duplicative. However, Warren accused Trump’s administration of ignoring ethics laws to allow Musk to operate with conflicts of interest.
Critics warned that this move could lead to a “slippery slope” where the government disregards ethics norms set by previous presidents. A lawsuit was filed against the CFPB and its acting director, Russell Vought, in Baltimore, asking a federal court to halt the funding and operations freeze.
Source: https://edition.cnn.com/2025/02/13/economy/elon-musk-cfpb-elizabeth-warren-trump/index.html