Trump’s acting chief of federal financial watchdog orders staff to pause activity Russell Vought is now acting head of CFPB, created in wake of 2008 financial crash to supervise financial companies.
Russell Vought, Donald Trump’s newly installed acting head of the US Consumer Financial Protection Bureau, announced on Saturday he had cut off the agency’s budget and reportedly instructed staff to suspend all activities including the supervision of companies overseen by the agency.
Reuters and NBC News reported that Vought wrote a memo to employees saying he had taken on the role of acting head of the agency, an independent watchdog that was founded in 2011 as an arm of the Federal Reserve to promote fairness in the financial sector.
The CFPB, which Congress created in the wake of the 2008 financial crash, supervises consumer-facing financial companies like banks, title lenders, mortgage originators and cash transfer services to prevent unfair, deceptive and abusive practices and other predatory conduct.
Vought, who was confirmed on a party line vote last week to lead the office of management and budget, also announced on Saturday evening on Elon Musk’s social media platform X that he was zeroing out the CFPB’s funding for the next fiscal quarter, saying the more than $700m in cash on hand was sufficient.
