Lawsuit filing details DOGE’s plans to dismantle the CFPB

MT HANNACH
7 Min Read
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Before a last -minute intervention by a federal judge, officials of the Trump administration planned to separate the financial protection office from consumers until there was nothing from the agency other than a room with “five men and a telephone in it”, according to current and old employees.

Their written testimony was contained in documents submitted Thursday as part of a trial aimed at interrupting mass layoffs at the besieged office. They offer new details step by step on how initiates say that the administration planned to decimate the regulator responsible for monitoring how large banks, mortgage lenders and other financial services companies treat customers.

They also describe how the key functions that the agency is required to fulfill under federal law, such as the exploitation of a portal of consumer complaints, has largely ceased to operate thanks to the cancellation of almost all its external contracts and the work prescription issued by the acting director Russell Vought.

The main judge Amy Berman Jackson of the American district court of the Columbia district temporarily blocked Trump officials dismissed CFPB staff two weeks ago in response to a judicial challenge to a union representing federal employees, who claimed that the administration planned to effectively eliminate the agency by ending 95% of its workforce originally 1700, ending its leases and announcing its external contracts.

The Trump administration seeks to Lift your order And made this week this week in a motion that he only tries to “rationalize” the CFPB rather than delete it entirely, and that he continued to maintain his functions required by law.

But according to the deposits on Thursday, the Trump team – with the support of the Elon Musk government ministry – planned to leave a version of CFPB rump in place that existed only.

Operating director Adam Martinez two of Declarations submitted by current anonymous employees. The senior executives explained to the staff “the writing was on the wall” and would have “shared that the intention of the management was to dismiss everyone, but the five positions required by the Dodd-Frank law”, which established the CFPB.

“A senior executive said that the CFPB will become a” treasure room, the White House or the Federal Reserve with five men and a telephone “, an employee was identified as being being Drew Doe testified.

Trump officials planned to dismiss staff in three phases, according to documents, starting with recent hirings that were in probation or long -term limited. A member of the DOGE team named Jordan Winck would have ordered the CFPB staff to end 1,200 others of his workers before February 14. Most remaining employees were to be eliminated from 60 to 90 days later.

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