The Trump administration won a partial victory this week in its ongoing quest to dismantle the Consumer Financial Protection Bureau (CFPB).
Previously, federal Judge Amy Berman Jackson of the Federal District Court in Washington issued an injunction stopping the administration from taking actions that would essentially gut the agency, including firing hundreds of employees.
The administration appealed Jackson's decision. While the appeals court did not overturn Jackson's ruling entirely, as the administration requested, it did curtail portions of it.
The New York Times reported that the three-judge panel ruled that while the government's appeal continues, CFPB leadership could send a "reduction in force" notice, which begins the process of laying off employees deemed not necessary to carry out the agency's "statutory duties."
The CFPB was created in 2011 in the aftermath of the 2008 financial crisis and the resulting "great recession." According to its website, the CFPB "was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace."
The watchdog agency deals with the banking, credit and financial industries, rooting out unfair, deceptive, or abusive acts or practices. It also enforces laws that outlaw discrimination in consumer finance, takes and investigates consumer complaints, and monitors financial markets for new risks to consumers.
The New York Times noted that the statutory responsibilities of the agency and the positions attached to them are at the center of the legal case.
Agency actions had resulted in $21 billion in compensation, principal reductions and canceled debts for consumers as of December 2024.
Originally published on Latin Times
