The Consumer Financial Protection Bureau (CFPB), created by President Obama to protect consumers after the 2008 financial crisis, has been effectively shut down by the Trump administration. Russell Vought, the newly appointed director of the Office of Management and Budget, ordered the agency to halt all work, including proposed rules, finalized but unimplemented rules, investigations, and new investigations. Vought also stated that the CFPB would no longer withdraw funds from the Federal Reserve, deeming its current funding of $711.6 million 'excessive'. The move has drawn criticism as the CFPB has been a target of conservatives since its inception.
Obama created the bureau in the wake of the 2007-2008 housing bubble and financial crisis , which was caused in part by fraudulent mortgage lending.has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal.
Vought's email follows a similar directive from Treasury Secretary Scott Bessent Feb. 3 and is the latest move by the Trump administration to rapidly curtail the work of federal agencies that they have deemed excessive. Vought suggested that the CFPB is “unaccountable” in his social media post.
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