President-elect Donald Trump announced a number of nominees for his new position ahead of the Thanksgiving holiday, but notably none of the announcements were candidates to lead various financial regulators, including Consumer Financial Protection Bureau (CFPB). This was reported by the Financial Times and the Wall Street Journal.
As incoming administration officials and the president-elect’s legislative allies have come out excited about the cuts they may be able to impose on financial regulatory agencies, these same statements and plans may now be working to oust nominees to lead the agencies, according to the report. the Financial Times.
It described the hunt for a new CFPB director as extremely difficult, saying many “experienced” candidates chose not to enter the selection process when it was reached in terms of capacity to participate, the report explained.
Another source described by the Financial Times as a former chief financial officer, who was approached about the project, explained the divisions that exist between the main political parties. They explained that Republicans believe the CFPB is “unconstitutional,” while Democrats “will never give you credit” for meaningful consumer protections because of Trump’s appointees. The source was not interested in the position, according to the report.
The Wall Street Journal also reported that leaders and insiders have been considering ways to change the regulatory stance of financial regulators, including the CFPB. Another plan involved moving it away from coercive efforts and toward information.
“Consumer education functions could replace regulatory and supervisory functions” at the CFPB, according to a possible plan for the agency by reform officials, the Journal said.
Leaders from the “Department of Federal Government Operations,” including billionaire Elon Musk and former political candidate Vivek Ramaswamy, have recently targeted the CFPB in public statements. Musk said the agency should be “defunct.”
Meanwhile, acting CFPB Director Rohit Chopra recently told a The Senate the committee that this organization will continue to work in the way it controls until the president orders it to withdraw.
Chopra’s name was first floated as CFPB director by the Biden transition team just days before the president’s 2021 inauguration, and then-director Kathleen Kraninger resigned on Inauguration Day.
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