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3mo ago

CFPB Enforcement Director Petersen Resigns Citing Trump Overhaul

Her resignation follows a federal injunction against mass layoffs, signaling deep disruption to the bureau’s enforcement mission.

In April, a federal judge paused efforts by the Trump administration to lay off nearly 1,500 of the 1,700 employees at the Consumer Financial Protection Bureau.
Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo
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Overview

  • Cara Petersen resigned as the CFPB’s acting enforcement director on June 10, criticizing leadership’s “devastating” staff cuts, case dismissals and settlement terminations.
  • Petersen, a 15-year bureau veteran who took charge after Eric Halperin’s February departure, leaves the agency without a current enforcement head.
  • Acting Director Russell Vought and Chief Legal Officer Mark Paoletta have proposed cutting about 90% of staff and dropped major actions against firms like Capital One and Walmart.
  • A federal judge halted the mass layoff plan and an appeals court is now considering the administration’s effort to overturn the injunction.
  • The National Treasury Employees Union is challenging the restructuring in court, warning that deep cuts would weaken consumer protections.