Category Archives: Consumer Financial Protection Bureau

Paper on Implications of CFPB Downsizing for Regulatory Integrity and Market Stability

David Krause of Marquette’s College of Business Administration has written Dismantling Financial Oversight: Implications of CFPB Downsizing for Regulatory Integrity and Market Stability. Here’s the abstract: This paper examines the long-term implications of the Consumer Financial Protection Bureau’s (CFPB) downsizing under the second Trump administration. Originally created in the aftermath of the 2008 financial crisis […]

David Dayen dives into the CFPB declarations about the latest layoffs

At the American Prospect, in Hatchet Job on CFPB Even Worse in the Details. the entire article is worth a read, but here’s an excerpt to whet your appetite: Even the divisions with larger staff numbers were effectively hobbled by the RIF. The Office of Consumer Response, which maintains the consumer complaint database, was knocked down […]

District Court accuses administration officials of “thumbing their nose at both this Court and the Court of Appeals” and enjoins CFPB Layoffs

Here is an excerpt from the Judge Jackson’s order: Given the scope and speed of the agency’s action, the apparent lack of consultation with the heads of the statutorily mandated agency components involved, and the troubling description of the RIF meetings set forth in plaintiffs’ declarations, the Court has significant grounds for concern that the […]

After CFPB issues memo about its priorities, it fired 1400 employees

Last Friday, the DC Circuit issued an order saying the CFPB could conduct reductions in force only “after a particularized assessment.” Last night, the CFPB issued a memo identifying supervision and enforcement priorities. Today it announced that it was laying off many employees–1400 according to Wired’s story, The CFPB Has Been Gutted. (thanks to Craig Cowie […]

DC Circuit limits District Court’s CFPB Order

The order is here. Judge Jackson’s order for the district court is here. The DC Circuit is allowing the firing of CFPB employees whom the Bureau has determined “after a particularized assessment, to be unnecessary to the performance of defendants’ statutory duties.” It remains to be seen what a particularized assessment is (at one point […]

Kate Berry: CFPB preliminary injunction likely modified by appeals panel

Here in the American Banker. Berry wrote: “The judges appeared to be leaning toward remanding the case back to the district court with some conditions that would allow the administration to fire some employees or put them on administrative leave.” According to Berry, the government’s lawyer, Eric D. McArthur, argued that “[t]he district court does […]

Law360: McKernan to be confirmed as CFPB director in May; congressional GOP leaders plan to limit CFPB

So Jon Hill reports in Trump’s CFPB Pick Could Be Confirmed By May, Scott Says. I still don’t know why the Senate’s confirmation vote on McKernan has been delayed. As for congressional Republicans’ other plans for the Bureau, Hill reports: [House Financial Services Chair French] Hill said that the general preference among his Republicans colleagues is […]

Nonprofit groups oppose CFPB’s attempt to reverse redlining settlement

The National Fair Housing Alliance, joined by fair housing, civil rights, and consumer protection organizations, filed an amicus brief last Friday in Consumer Financial Protection Bureau v. Townstone, an enforcement action that the bureau previously had successfully settled but that it now seeks to reverse in favor of the corporate defendant. In the original case, […]