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Court Halts CFPB Layoffs as Ethics Scandal Engulfs Trump Administration Aide

Gavin Kliger’s prohibited investments and role in mass firings raise legal and ethical concerns, with over 1,400 termination notices rescinded by court order.

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Overview

  • The U.S. Court of Appeals has temporarily blocked the mass layoffs at the Consumer Financial Protection Bureau (CFPB) and ordered the rescission of over 1,400 termination notices.
  • Gavin Kliger, a 25-year-old Department of Government Efficiency (DOGE) aide, participated in the layoffs despite being warned by ethics attorneys about his $715,000 in prohibited investments in companies regulated by the CFPB.
  • Ethics lawyers who had flagged Kliger’s stock holdings were among those fired, raising questions about conflicts of interest and accountability in the Trump administration’s efforts to downsize the CFPB.
  • The White House denies Kliger managed the layoffs, but court records and witness accounts suggest his active involvement, including pressuring staff to expedite termination notices.
  • Critics argue the downsizing of the CFPB undermines consumer protections and benefits corporations, while the Department of Justice under Trump shows little interest in enforcing federal ethics laws.