A top supervision examiner in the Consumer Financial Protection Bureau (CFPB) threatened the agency’s staff that “most unpleasant” consequences would occur if they were too aggressive in their financial oversight duties.
According to a Reuters report sourced from a May 13 internal email and two unnamed “people familiar with the matter,” Chief Examiner Fatima Batie offered her warning to the agency’s mid-level supervision staff as they were coming off a long hiatus and getting ready to continue inspections of financial firms.
Since President Trump’s second term began, the administration has sought to defang the CFPB through workforce reductions and a lighter approach to supervision – examinations have been reduced by about 50% during the second Trump term.
Last month, former Interim Director Russ Vought informing a congressional hearing that the agency is now approaching its work with the goal of creating “as little damage as possible.” He added, “That doesn’t mean we’re taking an approach to do…as little as possible. We’re sticking to the law.”
Batie’s email informed the agency’s staff to conduct their duties in “friendly reminder…to be careful.”
“I promise you if you say something inflammatory or newsworthy it will get back to you in the most unpleasant manner and I’m not referring to my or Calvin’s reaction,” she wrote, referencing her boss, Calvin Hagins, head of the agency’s examinations office. “Simply accomplish the tasks assigned as efficiently as possible.”
Batie did not offer specific examples of what would occur if CFPB workers ran afoul of her warnings.
Separately, Vought’s term as CFPB interim director expired on Saturday and he has been replaced by Mark Paoletta, formerly the agency’s chief legal officer and acting deputy director. Brian Johnson, Trump’s pick to become the next CFPB director, is awaiting Senate confirmation.
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