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4w ago

Trump Names OMB Aide to Lead CFPB as Bureau Sends Cases to DOJ, Plans Furloughs

The move pauses the vacancies clock, keeping Russell Vought in charge during a funding squeeze triggered by a DOJ opinion that blocks new transfers from the Federal Reserve.

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Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly
Office of Management and Budget Director Russ Vought will remain in charge of the Consumer Financial Protection Bureau, a spokesperson said Wednesday.
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Overview

  • The CFPB told staff it will transfer all active enforcement litigation to the Justice Department and expects to furlough more than 100 in‑house enforcement attorneys, with broader furloughs planned by Dec. 31.
  • President Trump nominated OMB associate director Stuart Levenbach as CFPB director in what agency spokespeople called a technical step that allows Vought to continue serving as acting chief beyond the 210‑day limit.
  • The Justice Department’s Office of Legal Counsel concluded the bureau may not legally request funds from the Federal Reserve because the Fed lacks “combined earnings,” and Vought says the CFPB will run out of money by year‑end.
  • The nomination has been received by the Senate Banking Committee, and it is unclear if or when a confirmation hearing will be scheduled.
  • Critics, including Sen. Elizabeth Warren, say the maneuver is intended to facilitate dismantling the agency, while the Consumer Bankers Association welcomed the nomination as coming at a critical time for the marketplace.