Sun Feb 09 18:16:46 UTC 2025: ## Trump Administration Shuts Down Consumer Financial Protection Bureau

**WASHINGTON, Feb. 9, 2025** – The Trump administration has effectively shut down the Consumer Financial Protection Bureau (CFPB), a key agency tasked with protecting consumers from financial exploitation. Acting Director Russell Vought, appointed by President Trump after the dismissal of Rohit Chopra, issued an order Saturday night halting nearly all CFPB operations.

Vought’s directive mandates a cessation of proposed rulemaking, the suspension of recently finalized rules, and a complete stop to all investigative work, including new investigations. He also announced that the CFPB will no longer receive funding from the Federal Reserve, citing the current $711.6 million allocation as “excessive.” This funding mechanism was specifically designed to shield the agency from political influence.

The CFPB, established in the wake of the 2008 financial crisis, has secured nearly $20 billion in financial relief for consumers since its inception. Critics argue this move undermines consumer protection and fulfills long-held conservative desires to dismantle the agency. Dennis Kelleher of Better Markets, an advocacy group, stated that the bureau’s effectiveness in combating financial fraud is precisely why it has been targeted by Wall Street and the Trump administration.

The administration’s action underscores the tension between Trump’s populist promises of reduced costs for working families and his commitment to deregulation. The CFPB was in the process of implementing Trump’s campaign pledge to cap credit card interest rates, a measure now stalled by the shutdown.

This action follows a similar directive from Treasury Secretary Scott Bessent and is part of a broader Trump administration effort to curtail the activities of federal agencies deemed overly expansive. Vought labeled the CFPB as “unaccountable” in a social media post. The agency, created under President Obama and championed by Senator Elizabeth Warren, has faced consistent criticism and legal challenges from the financial industry. Under Chopra’s leadership, the CFPB had initiated measures to limit bank overdraft fees, curb junk fees, and restrict the sale of personal data. It also investigated complaints related to the “debanking” of crypto firms and conservative organizations.

Read More