We previously reported that Treasury Secretary Bessent was named as the acting director of the Consumer Financial Protection Bureau (CFPB), and he subsequently ordered the CFPB staff to halt several activities. However, the situation at the CFPB remains in flux, with more changes occurring over the weekend.
On Friday, February 7, 2025, President Trump named newly confirmed director of the Office of Management and Budget, Russell Vought, as acting director of the CFPB.
On Saturday, February 8, 2025, Director Vought expanded the "freeze" of activities to halt all work, including examination and supervision activities and stakeholder engagement. The Trump Administration also canceled the CFPB's next funding draw from the Federal Reserve.
As of Monday, February 10, 2025, the CFPB's headquarters in Washington, D.C., has been closed for the week, and staff have been directed to stop all work.
What Should Financial Institutions Expect?
The situation at the CFPB is evolving quickly. However, as we discussed in our previous CFPB update, financial institutions should continue to comply with all applicable laws and regulations and to remember that many requirements enforced by the CFPB may also be enforced by other governmental authorities, including state regulators.
We anticipate legal challenges to the freeze as well as increased state regulatory activity. We will continue to monitor the situation at the CFPB and will provide updates as appropriate.
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