By Douglas Gillison Reuters
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The U.S. Consumer Financial Protection Bureau was rapidly defanged over the weekend with all activities suspended, its upcoming funding facing a cut and its headquarters temporarily shuttered, removing a layer of oversight over consumer-facing financial companies.

The agency, a lightning rod for conservatives and the industry since its 2010 creation by Congress, has been hobbled after the appointment of Russell Vought, President Donald Trump’s newly installed acting CFPB chief on Friday.

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Vought ordered staff to “cease all supervision and examination activity” and said he would zero out CFPB funding for the coming fiscal quarter.

Criticized by Republicans as unaccountable and exceeding its legal authority, the CFPB regulates the sector which originated the toxic mortgage-related products underlying the financial crisis. Its oversight extends to banks, title lenders, mortgage originators and cash transfer services, among others.

Vought’s order leaves much of that business activity without federal government oversight, which was sharply criticized by some factions.

“This latest attempt to kill the consumer bureau is another slap in the face for all Americans who depend on basic financial products and services,” said Dennis Kelleher, head of Better Markets, which advocates for stricter government oversight of the financial sector.

Kelleher accused Trump of throwing his own voters “to the financial wolves.”

The agency’s hobbling has also been hotly criticized by workers who denounce what they call a glaring conflict of interest with billionaire Elon Musk. The Department of Government Efficiency run by Musk has gained access to computer systems at an agency that would likely regulate one of his pending business ventures and its competitors.

Vought, who on Thursday became head of the White House Office of Management and Budget, has granted DOGE members administrative-level access to all agency information technology systems, according to a person with knowledge of the matter.

Musk, whose platform X is seeking to enter the consumer financial marketplace, has vowed to destroy the CFPB. Union officials said on Friday that Musk was effectively seeking to seize control of his own regulator. Musk did not respond to a request for comment.

The weekend moves continued a rapid advance by Trump and Musk to remake the federal government, drawing protests from agency workers on Saturday morning and condemnation from top Democratic lawmakers on Capitol Hill.

Vought said he would zero out CFPB funding for the coming fiscal quarter, according to an announcement on Saturday. In addition, the agency’s Washington headquarters will be closed for the coming week, according to a Sunday internal email seen by Reuters.

In a Saturday missive, Vought ordered staff to “cease all supervision and examination activity,” going a step further than a directive issued last week by Treasury Secretary Scott Bessent, whom Trump had briefly put in charge after firing CFPB Director Rohit Chopra.

The Office of Management and Budget did not immediately respond to a request for comment about the office closure. OMB said earlier on Sunday that Vought was now reviewing the CFPB’s supervisory activities that it said had been “weaponized” and exceeded the agency’s legal mandate.

Vought has directed that the CFPB cease public communications. It did not respond to a request for comment.

The moves to demobilize the agency are a “concerted effort to dismantle protections for American consumers,” said Skye Perryman, president and CEO of the liberal-leaning Democracy Forward group.

“We will swiftly pursue all legal options to defend the CFPB and protect the American people from financial harm,” Perryman said.