President Donald Trump appointed Treasury Secretary Scott Bessent as the acting director of the Consumer Financial Protection Bureau (CFPB), following the dismissal of Rohit Chopra. The change in leadership comes as no surprise to many within the banking industry, who anticipated Chopra's firing since Trump's inauguration. Chopra, who was appointed by former President Joe Biden in 2021, clashed frequently with financial institutions over regulations intended to curb practices around credit card late fees and overdraft fees.
Chopra's tenure at the CFPB was marked by tension with the U.S. banking industry. He sought to implement regulations that aimed to save consumers billions of dollars, challenging practices he deemed unfair. However, these efforts met with resistance from trade groups representing banks, who criticized the regulations as poorly considered or unjustified. Despite such opposition, Chopra continued to engage actively in regulatory discussions, including deliberations on whether banks were closing accounts unfairly.
The banking industry had been bracing for Chopra's removal since President Trump began his second term, but he managed to stay in his position for nearly two weeks beyond that point. During his time as director, he maintained a steady output of press releases and commentaries on contentious banking issues, underscoring his commitment to consumer protection.
Scott Bessent, a former hedge fund manager who was confirmed as Treasury Secretary last week, now steps into the role of acting director of the CFPB. In a statement issued by the bureau, Bessent expressed his intentions to collaborate with the CFPB in support of President Trump's goals.
"I look forward to working with the CFPB to advance President Trump's agenda to lower costs for the American people and accelerate economic growth," – Scott Bessent
Bessent is expected to lead the CFPB until a permanent director is appointed. His experience in financial management may influence how the bureau navigates the ongoing regulatory landscape, especially considering the legal battles that have surrounded previous regulations.