Photo: Jemal Countess / Getty Images Entertainment / Getty Images
The Trump administration has initiated significant changes at the Consumer Financial Protection Bureau (CFPB), starting with the dismissal of two top leaders on Tuesday (February 11). The New York Post reported that enforcement director Eric Halperin and supervision director Lorelei Salas were placed on administrative leave by Mark Paoletta, the top lawyer at both the CFPB and the White House Office of Management and Budget. Halperin resigned following his placement on leave, reportedly due to remarks defying orders from President Trump's aides to halt all work.
The CFPB, established after the 2008 financial crisis to protect consumers from financial fraud and abuse, has long been a target for Republicans who view it as overreaching. The agency's dismantling is part of a broader effort led by Elon Musk's Department of Government Efficiency (DOGE) to downsize federal agencies. Recently, DOGE accessed the CFPB's internal systems and deleted its public-facing social media accounts. Musk has publicly criticized the CFPB, posting "CFPB RIP" on X, the social media platform he owns.
The CFPB's closure has sparked significant opposition. Democratic Senator Elizabeth Warren, who helped establish the agency, warned that dismantling it would allow Wall Street CEOs to exploit consumers. The National Treasury Employees Union has filed a lawsuit against the administration, claiming that the orders to cease operations exceed legal authority.
Despite the backlash, the Trump administration remains firm in its decision. President Trump defended the move, stating the agency was "set up to destroy people."
Acting CFPB director Russell Vought has instructed employees to refrain from work unless approved in writing, signaling further reductions in the agency's operations. The CFPB, which has provided nearly $20 billion in financial relief to consumers since its inception, faces an uncertain future as these changes unfold.