In a controversial move, the Trump administration has initiated steps to significantly reduce the Consumer Financial Protection Bureau (CFPB), an agency created to protect consumers following the 2008 financial crisis. The CFPB union successfully suspended acting CFPB Director Russell Vought's initial efforts to close the bureau. However, the administration's intent remains clear: to cut down the bureau to the minimum staffing required by law.
The plan, discussed in meetings from February 18 to 25, involves a drastic workforce reduction strategy that would leave only five employees. These remaining staff members would either be housed in a standalone office or integrated into another regulatory body. Currently, the CFPB boasts a workforce of approximately 1,700 employees, but the Trump-appointed leadership aims to dismiss nearly all of them.
The proposed downsizing involves three phases. The first phase targets the termination of probationary and term employees, a process that has already resulted in the dismissal of about 200 staff members. The second phase envisions laying off around 1,200 employees, while the third and final phase would leave behind a skeleton crew of just a few hundred workers.
"One Senior Executive said that CFPB will become a 'room at Treasury, White House, or Federal Reserve with five men and a phone in it,'" – Drew Doe.
The CFPB has already shuttered its Washington headquarters and instructed remaining employees to cease nearly all operations. The drastic reduction in workforce raises concerns about the bureau's ability to fulfill its original mission to safeguard consumers from irresponsible lending practices, which contributed to the financial crisis over a decade ago.
"My team was directed to assist with terminating the vast majority of CFPB employees as quickly as possible," – Alex Doe.
"Finally, the Bureau would 'reduce altogether' within 60-90 days by terminating most of its remaining staff," – Alex Doe.