Skip to content
Breaking News

Breaking News

  • Home
  • World
  • Business
  • Health
  • Entertainment
  • Life Style
  • Sports
  • Toggle search form

Federal Financial Watchdog Ordered to Cease Activity

Posted on February 9, 2025 By Admin No Comments on Federal Financial Watchdog Ordered to Cease Activity


Employees of the Consumer Financial Protection Bureau were instructed to cease “all supervision and examination activity” and “all stakeholder engagement,” effectively stopping the agency’s operations, in an email from the director of the Office of Management and Budget, Russell Vought, on Saturday evening.

Mr. Vought, who was confirmed this week to lead the Office of Management and Budget, was on Friday named acting director of the consumer protection bureau, the federal government’s financial industry watchdog. In his email to staff on Saturday, he reaffirmed earlier instructions from the previous acting director, Treasury Secretary Scott Bessent, who ordered last week that staff should not issue any new rules or guidance and cease all investigations.

“As acting director, I am committed to implementing the president’s policies, consistent with the law, and acting as a faithful steward of the bureau’s resources,” Mr. Vought wrote in the email, which was obtained by The New York Times.

The agency, created by Congress in 2011 as a financial industry watchdog, cannot be closed without congressional action, but its director can freeze most of its actions by halting enforcement, weakening or repealing regulations and softening its supervision of banks and other lenders. The agency did not immediately respond to an emailed request for comment on Saturday.

The agency has issued a number of high-profile regulations and enforcement actions over the years, seeking to strengthen safeguards on mortgages, credit cards, loans and other consumer finance. Most recently, the bureau sued Capital One in mid-January, arguing that the bank misled customers in promoting a high-yield savings account that it then kept at a near-zero interest rate.

In a Saturday evening post on X, Mr. Vought, an author of Project 2025, the conservative blueprint for radically remaking the federal government, wrote that he had notified the Federal Reserve that the finance bureau “will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties.” (The agency is directly funded by the Federal Reserve, outside the usual congressional appropriations process.)

“The Bureau’s current balance of $711.6 million is in fact excessive in the current fiscal environment,” he added in his post. “This spigot, long contributing to CFPB’s unaccountability, is now being turned off,” he said, using the agency’s initials.

On Saturday, some members of the union representing the consumer protection bureau’s employees protested outside the agency’s Washington building with signs mocking Elon Musk, whose government efficiency effort has wreaked havoc across various federal agencies. Several members of Mr. Musk’s team arrived at the agency on Friday morning and gained access to its headquarters and computer systems.

Later that day, Mr. Musk posted “CFPB RIP,” with an emoji of a gravestone, on X. Hours after Mr. Musk’s post, the home page of the bureau’s website was updated with a “404: Page not found” message.



Source link

Business

Post navigation

Previous Post: Actor Tony Roberts dies due to lung cancer complications at 85
Next Post: Israeli troops start withdrawal from Gaza’s Netzarim Corridor – SUCH TV

More Related Articles

Vande Bharat Express Gets New ‘Saffron’ Paint, Indian Railways To Replace White Colour: Here’s Why? Business
Real interest rate turns positive | The Express Tribune Business
Govt Launches BHASKAR One Stop Digital Platform To Connect Startup Ecosystem Business
China’s Economy Faces Yet Another Threat: Falling Prices Business
Rupee extends losses against US dollar – SUCH TV Business
Growth surprise: Could it save the day? Business

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Pandemia: Latinos in Crisis
  • Messi ruled out of Miami’s Leagues Cup clash with Pumas
  • The new talking therapy that can help reduce back pain for up to three years
  • Airtel Q1FY26 Results: Telecom’s Net Profit Up 43% To Rs 5,948 Cr
  • German’s Karachi consulate resumes services for non-EU nationals

Categories

  • Business
  • Entertainment
  • Health
  • Life Style
  • Sports
  • World

Copyright © 2025 Breaking News.

Powered by PressBook Blog WordPress theme