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Elon Musk holds a chainsaw on the stage during the Conservative Conference of Political Action (CPAC) in the National Port, Maryland, USA, on February 20, 2025.
Nathan Howard | Reuters
He Consumer Financial Protection OfficeThe leadership designated by Trump plans to say goodbye to almost all its 1,700 employees while “liquidates” the agency, according to employee testimony.
In Treasure Of the statements published on Thursday night, federal employees said that the mass dismissal was discussed in the meetings attended this month with senior CFPB leaders and members of ELON ALMIZCLEThe so -called government efficiency department.
“My team was aimed at helping to finish the vast majority of CFPB employees as quickly as possible,” said an employee identified as Alex Doe, a pseudonym used for fear of reprisals.
Doe said the CFPB and Doge leaders plan was to reduce the workforce of the office in three phases. First would eliminate test and term employees, then carry out a wave of approximately 1,200 layoffs, leaving a skeletal crew of a few hundred workers.
“Finally, the office would” reduce in total “within 60-90 days ending most of its remaining staff,” said Doe.
The testimony of the workers arrives at a crucial moment for the CFPB, the agency created to protect consumers after the 2008 financial crisis caused by irresponsible loans. Since the agents of Dugo arrived for the first time to the CFPB this month, the office closed its Washington headquarters, began the first round of layoffs and told those who remained to stop. Almost all work.
The department has also reversed the course in several cases in which it accused financial companies, including Capital one of cheating customers, dismiss at least four cases Thursday that involves billions of dollars in alleged damage to the consumer.
The presentations containing employee statements were made in the case Started by a CFPB union, which led a judge who suspended the movements of the interim director Russell Vought to close the office. After the CFPB shot about 200 test and term employees, the agency’s shares were suspended until a audience of March 3.
‘Five men and a phone’
The documents show an apparent disconnection between some of Voucht’s external messages and the activity behind the scene in the office.
In motion Filed on Monday in the case, vought pushed Back against the idea that he planned to eliminate the CFPB.
“The predicate to execute a ‘more simplified and efficient office’ is that there will continue to be a CFPB,” he wrote.
But the Trump administration plan was to bring the CFPB to the best minimum staff required under the law: only five CFPB employees would remain, either in an independent office or folded in another regulatory body, workers testified.
In the meetings between February 18 and February 25, “the senior executives told staff that the CFPB would be eliminated, except the five successfully mandatory positions,” said another current CFPB employee, is identified as Drew Doe.
“A senior executive said that CFPB will become a ‘room in the treasure, the White House or the Federal Reserve with five men and a phone’,” said Doe.
Another CFPB employee said he attended a meeting on February 13 in which office director Adam Martínez declared that the agency was in “liquidation mode.”
CFPB employees said that if the court indicates it, they would provide their names and titles under seal.
Dux paper
The office has long been a objective of Republicans and financial institutions, which have called it a dishonest agency that exceeded its legal authority in punishing companies. More recently, Musk has assumed the cause; Published on its x “platform,RIP CFPB“Earlier this month, just when their Dux agents began their work.
In several cases in the testimony, CFPB senior personnel seemed to differ to Doge employees for critical issues.
For example, Dux Jordan Wick worker “specifically declared” that Musk’s ad hoc group wanted a massive round of layoffs for February 14.
“The office intended to comply and say goodbye to the vast majority of the remaining employees on February 14th“Alex Doe said.” The only reason he did not do it is for the order of this court. “
In other cases, Dege’s workers asked CFPB staff about how deeply they could reduce operations while adhereding to legal requirements in areas such as consumer response, according to the testimony of CFPB worker Matthew Pfaff.
Despite obtaining full access to CFPB systems and data on February 7, Doge employees have not yet completed cybersecurity and privacy training required by the agency, employees testified.
Legal requirements
While Musk and Vought have openly advocated the termination of the CFPB, only Congress can really close the agency, which was created after legislators approved the Dodd-Frank 2010 Law.
Vought’s movements seem to allow him to affirm that the CFPB still exists, while leaving his role by drastically reducing his ability to supervise companies and respond to complaints.
CFPB employees question whether a handful of employees could fulfill the dozens of legal requirements of the agency, which include responding to millions of consumer complaints presented through web and telephone lines, as well as maintaining defense offices for military veterans and major citizens.
On Thursday, Jonathan McKernan, president Donald TrumpThe choice to take care of CFPB for vought, said legislators, including SEN. Elizabeth WarrenThe Massachusetts Democrat accredited the creation of the agency, which “full and faithfully” enforce the laws related to the CFPB mission.
McKernan added that if the Senate confirms it, “Rights” the CFPB, as well as “forward” and “would make it responsible.”
By pointing out that Vought, who is also the head of the Office of Administration and Budget, has canceled the lease of the agency’s headquarters, Senator Jack Reed, D. -ri, told McKernan that he was in a “very difficult position.”
“It does not seem to have much presidential support or OMB support, and I have the feeling that he is sinking that he is leaving Liverpool In the Titanic“Reed said.” Good luck “.
