Top CFPB enforcement official to resign, citing ‘devastating’ shifts under Trump
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Top CFPB enforcement official to resign, citing ‘devastating’ shifts under Trump
Acting Enforcement Director Cara Petersen has served at the agency since its creation nearly 15 years ago. She said that current leadership under President Donald Trump “has no intention to enforce the law in any meaningful way” Petersen’s departure comes four months after the agency’s enforcement and supervision chiefs also resigned amid efforts to dismantle the CFPB. A federal appeals court in Washington has yet to decide on the Trump administration’s effort to undo a court injunction blocking the agency from firing most staff.
Summary
Companies Petersen criticizes Trump administration’s impact on CFPB enforcement
CFPB leadership accused of dismantling enforcement function
Republicans criticize CFPB’s power; Democrats defend its consumer role
CFPB’s enforcement cases against Capital One and Walmart dropped
Federal court to rule on CFPB staff firing injunction
June 10 (Reuters) – The top remaining enforcement official at the U.S. Consumer Financial Protection Bureau has tendered her resignation, saying the White House’s overhaul of the agency had made her position untenable, according to an email seen by Reuters.
Acting Enforcement Director Cara Petersen, who has served at the agency since its creation nearly 15 years ago, said that current leadership under President Donald Trump “has no intention to enforce the law in any meaningful way.”
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“I have served under every director and acting director in the bureau’s history and never before have I seen the ability to perform our core mission so under attack,” Petersen wrote in an email.
“It has been devastating to see the bureau’s enforcement function being dismantled through thoughtless reductions in staff, inexplicable dismissals of cases, and terminations of negotiated settlements that let wrongdoers off the hook.”
Petersen’s departure comes four months after the agency’s enforcement and supervision chiefs also resigned amid efforts by President Donald Trump to dismantle the CFPB
An agency spokesperson and Petersen did not immediately respond to requests for comment.
The dramatic changes come as Republicans have complained for years the CFPB, created in the aftermath of the global financial crisis, is too powerful and lacks oversight. Democrats and agency backers contend it plays a critical role policing financial markets on behalf of consumers.
“While I wish you all the best, I worry for American consumers,” said Petersen in her email.
A federal appeals court in Washington has yet to decide on the Trump administration’s effort to undo a court injunction blocking the agency from firing most agency staff.
Reporting by Douglas Gillison, Editing by Nick Zieminski
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