Trump bondmen fear that the methods of doge to dismantle CFPB can be counterproductive: reporting
“Trump fellowed, including Russell Vought, the head of the Office of Management and Budget and acting director of the CFPB, were seen as worried that Doge’s lack of discipline could undermine the efforts to castrate the agency, according to three people who became Informed about the situation that was that was that was “not authorized to speak publicly,” Bloomberg reported. “The care is that the Lukrake actions of the Musk team can be challenged before the court – and let a muscular CFPB live.”
A spokesperson for Vought denied all tensions and tells Bloomberg that “story is false and another ax-to-grind story to Doge.”
Vought, a 2025 -architect project who has argued for eliminating the CFPB, the agency almost closed immediately after he had adopted power. He ordered staff to stop supervision and regulatory work. Vought also forbade lawyers from the Agency to continue active lawsuits and any communication between staff.
Bloomberg reported that the Musks team had dismissed around 200 out of 1,700 employees of the agency, and others cannot work unless they are cleaned up by a White House lawyer. Sources said the publication that doge officials – who work from the basement – do not even seem to understand what the agency did.
The current Doge -Since of CFPB functions comes as Mark Calabria, the former head of the Federal Housing Financing Office (FHFA), join an interim capacity to confirm Jonathan McKernan as permanent director. The Washington Post reported that he will be given the task of helping independent agencies under the control of the Office of Management and Budget (OMB).
In July he told Housingwire that he did not expect the desk to be ‘removed’.
“I don’t think the CFPB will leave – as much as it would be fun. But I do think you will see a difference in the attitude that matters in the mortgage industry, in terms of enforcement and obligations. The approach of the republicans of the CFPB is to say that there are misconduct; We go after the bad guys. This [Biden] Administration says the same, and that is where the overlap is. The difference is this [Biden] Administration is also of the opinion that we will use the CFPB to choose winners and losers to redistribute our friends and to enter into a lot of social engineering. And that is a much different approach than just going after the bad guys, “said Calabria.
On Thursday, a federal judge allowed the Trump government to dismiss federal employees, including at the CFPB and Veteran Affairs departmentpunishing the case to the Federal Labor Relations Authority instead of.
