Employees of the Consumer Financial Protection Bureau (CFPB) are claiming the Trump administration is planning to fire nearly all of the agency’s 1,700 employees in a three-phased strategy.
According to a CNBC report sourced from testimony given by the agency’s employees, news of the coming layoffs was revealed during meetings earlier this month involving senior CFPB leaders and members of Elon Musk’s Department of Government Efficiency. One employee identified by CNBC as “Alex Doe” – he claimed the pseudonym was used out of fear of retaliation – said the first firing phase would cut probationary and term employees, which would be followed by a wave of about 1,200 layoffs before the agency “would ‘reduce altogether’ within 60-90 days by terminating most of its remaining staff.” Doe said.
The worker’s testimony comes at a crucial time for the CFPB, the agency created to protect consumers after the 2008 financial crisis caused by irresponsible lending. Since DOGE operatives first arrived at the CFPB this month, the bureau has shuttered its Washington headquarters, initiated the first round of layoffs, and told those who remain to stop nearly all work.
Another employee, using the pseudonym “Drew Doe,” claimed the Trump plan would only retain five CFPB employees who would either work in a standalone office or have their duties folded into another regulatory body.
“Staff were told by senior executives that the CFPB would be eliminated except for the five statutorily mandated positions,” said Drew Doe, adding the CFPB would be reduced to a “room at Treasury, White House, or Federal Reserve with five men and a phone in it.”
Photo by Adam Fagen / Flickr Creative Commons
Can you say ‘gullible’?
Lest we not forget that this was an add on agency that was formed in 2011following the financial crisis. The Dodd-Fark Act, which also formed this agency, put new regulations into effect, and also strengthened the enforcement ability of other existing agencies. The cfpb was formed to simply augment and and work with other, already existing agencies that are tasked with the same consumer protection mandate, but in specific areas:
FINRA, FTC, FCC,SEC, FDIC, OCC, State Attorneys General ,and other State Regulators
the consumer is not left w/o protection by downsizing this agency.
If theCFPB is full of waste, fraud and abuse and can operate with only 5 people, lay them off now.
Hmm, Tina I guess you must work for a financial company! I happen to be a Real Estate Broker for the past 40+ years and have seen a lot of weird ways to get a loan that is set up for the consumer, business etc.. to get backwards. Some kind of check and balances is a good thing. Sure CFPB as with all agency’s have some kind of waste, using a hatchet vs a scalpel is not the way forward!
Exactly Allan! I am a real estate broker who wants to see my clients protected not ripped off as they were before the crash in 08. Only make $30,000 per year? Oh you can afford a $250,000 house per the lender. Then lender calls the appraiser to tell them how much they need. Houses without furniture because the people couldn’t afford their mortgages and taxes. Then came the foreclosures because of these practices. The only reason President Musk and his sidekick Trump want to get rid of this agency is so they and their their other swamp buddies can start ripping off the American citizen’s again especially low income ones. Waste needs to be cut but not by a sledge hammer and ask questions later.
I agree Deb! Sure it’s tough to get a loan, get an appraisal but thats good. I want my clients in 5 or 10 years coming back wanting to sell their house for a profit and look for a new one. We need reasonable checks and balances in place. I think we have those now. I take CE classes in ethics, financing with lots of case studies on what can go wrong with loans that should not be!! Life is short we should as Real estate professional’s demand that CFPB stays. This will look bad for us later on, we have enough things to worry about!
Just gotta point this fact out..
In Boston on local TV stations they have programs like :
“Hank investigates”
Where we the people cannot get an answer to being scammed..
The team investigates # reporters
And funny many times they find a solution for the consumer issue! lol
So these Reporters do get paid thru “ commercials” go figure
Something simple as your local tv station investigates for free!
Cause they make millions off commercials!
Why does we need paid gov employees again to be the “watch dog”
Oh don’t forget we have state AGs to call and email as well.. for free because they work for “We The People”
Healthy food for thought peeps