The Consumer Financial Protection Bureau (CFPB) faced a significant workforce reduction as over 1,400 employees were terminated under the Trump administration's directive, leaving only around 200 staff members. This move follows a federal judge's temporary order against terminating probationary workers, later reversed by an appeals court. The CFPB, established in 2010 post-financial crisis to protect consumers, is shifting its focus away from previous supervisory roles and deprioritizing key consumer protection topics like medical debt and student loans. This restructuring raises concerns about the agency's future effectiveness.
The CFPB was established by the 2010 Dodd-Frank Act, an expansive piece of legislation that imposed consequential regulatory reform in the wake of the 2008 financial crisis.
As far as I can tell it affects literally every office to at least some extent with at least some of them fully wiped out, says one terminated CFPB worker.
In an email sent to CFPB staff on Wednesday, CFPB chief legal officer Mark Paoletta announced that the agency would be shifting its focus away from its supervisory roles and towards 'tangible harm to consumers.'
Around 200 employees will be left at the CFPB, effectively gutting the agency Elon Musk has previously said should be 'deleted.'
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