The Consumer Financial Protection Bureau is Musk’s next target

Potential security failures in DOGE takeover

Rep. Val Hoyle, D-Ore., on Thursday said that she is leaving the Congressional Department of Government Efficiency (DOGE) Caucus due to Elon Musk’s cost-cutting measures in the executive branch. Eric Cole, former CIA hacker and cyber security expert, joined LiveNOW from FOX to discuss.

Elon Musk and members of his Department of Government Efficiency team have reportedly entered the headquarters of the Consumer Financial Protection Bureau, the latest agency to be targeted by the billionaire ally of President Donald Trump.

Musk, a few hours later on his social media site X, posted “CFPB RIP” with a tombstone emoji. It’s not the first time that Musk, who’s been tapped by Trump to upend the federal workforce, has made disparaging comments about the CFPB.

What is the Consumer Financial Protection Bureau?

The backstory:

The bureau was created after the 2008 financial crisis to regulate mortgages, car loans and other consumer finance. It has long been opposed by Republicans and their financial backers.

Sen. Elizabeth Warren developed the idea of the CFPB and is one of Trump’s targets for criticism.

Last year, the Supreme Court rejected a challenge that could have undermined the bureau, ruling that the way it is funded does not violate the Constitution. Unlike most federal agencies, the bureau does not rely on the annual budget process in Congress, but is funded directly by the Federal Reserve.

Why is Musk targeting the Consumer Financial Protection Bureau?

Big picture view:

Musk, Trump and a large bloc of Republicans have long criticized the CFPB as regulatory overreach. But consumer advocates say Musk’s motives may be a conflict of interest: According to Politico, Musk sees the CFPB as an obstacle to launching real-time payments on X through Visa. The CFPB has been cracking down on tech companies with payment platforms.

The other side:

Many liberal groups stressed that the CPFB work helped to return billions of dollars to consumers.

Kitty Richards, a former Treasury Department official and senior strategic adviser at the liberal think tank Groundwork Collaborative, said the CPFB has been a “tireless watchdog.”

“Trump was always more interested in serving his billionaire boys club than delivering change for working people,” Richards said.

Trump fires head of Consumer Financial Protection Bureau

Dig deeper:

The crusade against the CFPB comes days after Trump fired the director of the Consumer Financial Protection Bureau, Rohit Chopra, in the latest purge of a Biden administration holdover.

Chopra was one of the more important regulators from the previous Democratic administration who was still on the job since Trump took office on Jan. 20. Chopra’s tenure saw the removal of medical debt from credit reports and limits on overdraft penalties, all based on the premise that the financial system could be fairer and more competitive in ways that helped consumers. But many in the financial industry viewed his actions as regulatory overreach.

California Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, said in a statement that Chopra’s dismissal “marks the end of an era of strong consumer protection and the beginning of a plan to end this important agency.”

The Source: This report includes information from the Associated Press and Politico.

Elon Musk Politics Donald J. Trump Consumer News U.S.Politics Consumer Money

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