Russell Vought, the acting head of the Consumer Financial Protection Bureau (CFPB), has issued a series of directives that effectively halt most of the bureau's operations. The directives, sent to CFPB employees on Saturday night, instruct them to cease all supervision and examination activities, stakeholder engagement, pending investigations, public communications, and enforcement actions. Vought also ordered the suspension of the effective dates of all final rules that have not yet come into force and prohibited the approval or issuance of new rules or guidance. This move has been met with criticism from Sen. Elizabeth Warren, who helped create the CFPB after the 2008 financial crisis. She argues that Republicans have consistently tried to weaken the CFPB and this action is just another attempt to undermine its effectiveness.
The Senate confirmed Vought as director of the Office of Management and Budget on Thursday. Office of Management and Budget Director Russell Vought issued a series of directives to Consumer Financial Protection Bureau employees Saturday night in his new capacity as the bureau's acting head, effectively slowing a large portion of the bureau's activity to a standstill.
In the email to CFPB employees, which was obtained by NBC News, Vought confirmed that he has taken on the role of acting head of the bureau and announced a dozen directives that would go into effect immediately. Employees were instructed to “cease all supervision and examination activity,” “cease all stakeholder engagement,” pause all pending investigations, not issue any public communications and pause “enforcement actions.” Vought also told employees not to'approve or issue any proposed or final rules or formal or informal guidance' and to'suspend the effective dates of all final rules that have been issued or published but that have not yet become effective,' among other directives listed in the email. He said in the email that the directives are effective immediately, unless he approves an exception or a certain activity is required by law. Saturday night that he notified the Federal Reserve, which handles U.S. monetary policy, that 'CFPB will not be taking its next draw of unappropriated funding because it is not 'reasonably necessary' to carry out its duties.' 'The Bureau’s current balance of $711.6 million is in fact excessive in the current fiscal environment,' the post continued.'This spigot, long contributing to CFPB’s unaccountability, is now being turned off.'Sen. Elizabeth Warren, who helped create the CFPB in the aftermath of the 2008 financial crisis, slammed Vought's directives in 'Republicans have failed to gut it in Congress and in the courts,' she added.'They will fail again.' A current CFPB employee described the situation as President Donald Trump and Elon Musk, who is spearheading the Department of Government Efficiency,'leaving American families exposed to financial abuse.' 'They’re pulling hundreds of examiners out of the field — the people who make sure your grandmother isn’t getting ripped off by scammers and your kid isn’t being deceived by predatory student lenders,' the employee added. NBC News had previously reported that Vought had taken on the role of acting head of the CFPB, according to an OMB spokesperson and a source familiar with the situation. Mick Mulvaney, Trump’s OMB director during his first term, took over the CFPB at the president’s behest in 2017. Mulvaney at the time Trump’s DOGE, an advisory body led by Musk, has zeroed in on some agencies as part of its efforts to slash the size of government. The CFPB was the latest to As part of the ongoing efforts to curtail USAID, Trump said he “could see” Secretary of State Marco Rubio taking charge of the agency. Rubio, who said earlier this week he Trump and Republicans have long taken aim at the CFPB, seeking to rein in its regulatory powers. The bureau was established in 2011 as a result of the Dodd-Frank Act in the aftermath of the Great Recession. The agency has said its purpose is to increase protections for consumers and accountability for corporations. Massachusett
CONSUMER FINANCIAL PROTECTION BUREAU RUSSELL VOUGHT ELIZABETH WARREN DEPARTMENT OF GOVERNMENT EFFICIENCY ELON MUSK FINANCIAL REGULATION DUDD-FRANK ACT
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