The Trump administration on Monday denied allegations that it aimed to dismantle the Consumer Financial Protection Bureau (CFPB).
Government lawyers said consumer watchdogs will continue to exist as employee unions and other groups attempt to stop what they described as “wholesale demolition” of the agency.
“A surprising thing is that a group of CFPB employees and other plaintiffs are currently turning these actions as part of a “coordinated campaign by the new administration” to eliminate the “CFPB,” according to the law. The ministry's lawyer wrote.
They pointed to Trump's recent decision to nominate Jonathan McCernan, a former board member of the Federal Deposit Insurance Corporation (FDIC) to serve as CFPB director, saying, “It's essentially more reasonable and efficient.” He pointed out the intention of Russell Vert's agent to run the office.
“The predicate to implementing a 'more streamlined and efficient station' is that CFPB continues to exist,” the DOJ added.
The claim seems to be at first glance contradictory to comments by both President Trump and his close ally Elon Musk in recent weeks.
When asked earlier this month in an oval office if his goal was to completely eliminate CFPB, the president said, “We're trying to remove waste, fraud and abuse, so we're not. I'll say it,” he replied.
The mask, which previously called for consumer watchdogs to be “deleted” was posted on the “CFPB RIP” on social platform X in early February.
The National Financial Employees Union (NTEU), which represents CFPB workers, sued Vought earlier this month. Shortly after he took over as acting director, Vought ordered employees to stop all their jobs and fire dozens of staff, causing fear about the agency's future.
After the union raised concerns that the administration could implement massive layoffs and delete agency data, the DOJ said officials would temporarily sought staff without deleting or deleting the cause and data. I agreed to a court order that temporarily prohibits it from being banned.
However, the government on Monday argued that the court should not grant a long-term injunction, calling the union's request “breathing scope,” claiming that the CFPB still meets statutory liability. .
