Treasury chief to temporarily lead US consumer protection bureau

1. Treasury chief to temporarily lead US consumer protection bureau

Treasury chief to temporarily lead US consumer protection bureau AFP | Feb 04, 2025 12:48 AM IST Read this news in brief form Share Via Copy Link Treasury chief to temporarily lead US consumer protection bureau

US Treasury Secretary Scott Bessent will temporarily head the Consumer Financial Protection Bureau, the agency said Monday, a move set to shake up the watchdog's operations with Bessent reportedly ordering a halt to much of its work.

Treasury chief to temporarily lead US consumer protection bureau

In a memo to staff, he told the bureau to pause its work on conducting investigations and on enforcement actions, among others, US media reported.

The development came after President Donald Trump fired the CFPB's previous director Rohit Chopra, who took an aggressive approach to regulation.

The halt in operations comes pending a review, The Washington Post reported Monday, saying Bessent cited a need to promote consistency with the new administration's goals.

Chopra said Saturday his term had been concluded prematurely.

He was named to head the agency responsible for protecting consumers from unfair financial practices in 2021 and was due to serve a five-year term.

The departure signals a likely shift away from his stance towards enforcement and regulation.

Bessent, a former hedge fund manager, won Senate confirmation to helm the Treasury Department last week.

He said in a statement that he looks forward to working with the CFPB to advance Trump's economic agenda.

The CFPB started operating in 2011 in the wake of the global financial crisis of 2008, but its regulations often drew pushback from organizations like banks and credit card companies.

Bessent's arrival was met with approval from the American Bankers Association.

ABA president Rob Nichols said in a statement that the association has "disagreed with many actions the Bureau has taken in recent years," charging that these moves "exceeded its statutory authority" and hurt the economy.

"We urge Secretary Bessent to begin reversing the damage caused by these misguided regulatory actions and stand ready to support his efforts," Nichols added.

He instead called for "appropriately tailored regulation."

Advocacy group Progressive Change Campaign Committee earlier slammed Chopra's dismissal as "a direct giveaway to Wall Street," accusing the president of having "caved into pressure."

Chopra's firing is the latest in a long line of dismissals as Trump returned to the White House in January with an assertion that all government departments should be aligned with his political agenda.

He has promised, with his billionaire ally Elon Musk, to correct what he sees as the excesses of corporate regulation while drastically reducing public spending.

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