The mass firings carried out at the Consumer Financial Protection Bureau (CFPB) were halted, at least temporarily, by a federal judge on Friday. The agency said it had dismissed between 1,400 and 1,500 workers, which amounts to nearly 90% of its workforce.
President Donald Trump and billionaire Elon Musk have called for abolishing the agency, accusing it of politicizing enforcement and waste, but administration officials have said in court that the CFPB will persist in some form.
The reduction in force followed the release of a memo outlining changes to the agency that would be made once all the layoffs were complete.
TRUMP ADMIN MOVES TO CRACK DOWN ON USE OF REGULATORY ‘GUIDANCE’ AT CFPB
The memo said the CFPB’s supervision arm will reduce the number of supervisory “events” or exams by 50%, with a focus on “conciliation, correction and remediation of harms subject to consumers’ complaints.”
CFPB will also move its focus to primarily being on depository institutions, rather than non-depository institutions, returning to a 2012 mix when 70% of CFPB supervision was on banks and depository institutions and 30% on non-banks. The memo said that currently that mix has “completely flipped” with over 60% on non-banks and under 40% on banks and depository institutions.
JUDGE TOSSES BIDEN-ERA CREDIT CARD LATE FEE RULE: WHAT TO KNOW
The judge who issued the ruling said she was concerned the administration was violating court orders following previous cases when mass firings took place.
“I am deeply concerned given the scope and speed of the agency’s action…about whether the agency is now in compliance with the preliminary injunction,” U.S. District Judge Amy Berman Jackson said during a hearing called after Thursday’s dismissals.
She ordered CFPB employees to retain access to computers on Friday evening despite the notices saying otherwise in their Thursday dismissal notices.
Reuters and FOX Business’ Eric Revell contributed to this report
Read the full article here
