The Trump administration plans to widen the Consumer Financial Protection Bureau (CFPB) in dismissing 95% of its staff while canceling the lease in its headquarters in Washington, DC, according to a federal trial aimed at stopping the movements.
In the event of success, mass layoffs would only leave the skeleton of an agency responsible for monitoring the way in which major banks and other financial service companies such as salary lenders and credit offices manage customers.
The CFPB is currently closed after the acting director Russell Vought ordered the staff to stop all the work and stay at the office of the office this week. He also started dismiss staff and Cancel contracts with sellers and expert witnesses.
Administration officials were opened on their objective of eliminating the agency: after the members of its Doge team arrived at its headquarters from its headquarters last week, billionaire Elon Musk tweeted “RIP CFPB”, While President Donald Trump Tell to journalists Tuesday, it was “very important to get rid”.
“It was also a waste,” he said. “There was a bad group of people who led him. … It was a vicious group of people. They destroyed many people. »»
The new trial, submitted Thursday in Washington by a federal union of employees as well as non -profit organizations that work with CFPB, seeks to reverse Vought stop work orders and to any additional dismissal. He argues that mass layoffs will leave the office unable to perform its basic functions required by law.
“Trump and Vought’s actions to deactivate the CFPB have already caused massive confusion and imposed significant and irreparable damage to consumers across the country,” said the trial. “In the absence of immediate relief, the defendants will continue to upset the lives of countless civil servants.”
Among the other tasks required by law, the CFPB interrupted all its supervision on banks and other lenders, notes the trial. The consumer complaints portal has also been “seriously disturbed”. The agency generally receives hundreds of thousands of complaints each month.
According to the trial, Vought also plans to bring back the operating reserves of the CFPB in the federal reserve, which finances the agency. During the weekend, he informed the Fed that the Consumer Guard Dog would not require any new financing for the coming quarter, as he planned to spend his reservations.
The trial does not cite a source on mass layoffs, but rumors have been among the current and old personnel members that mass fire can be imminent. He indicates that Trump officials would have “informed the General Services Administration that they put an end to the lease of the CFPB headquarters”.
