The security officer works in Washington on Monday at the Construction Headquarters of the Consumer Financial Protection Bureau (CFPB). Staff and contractors are said to have closed that week and will not be doing any work. Jacquelyn Martin/AP/AP Hide Caption
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Jacquelyn Martin/AP/AP
The oversight and enforcement director of the Consumer Financial Protection Agency resigned Tuesday morning, citing a suspended work order recently issued by Russell Vought, both acting directors of the institution.
The resignation of Superintendent Lorelai Saras and Executive Director Eric Halperin was announced to their respective teams via email shared with NPR by current and former employees of the CFPB. The two officials were appointed to their roles more than three years ago.
Before Halperin and Saras resigned, CFPB employees are familiar with the situation where they requested anonymity because they were not authorized to comment, said at the general counsel of the White House Management and Budget Office. He was taken on leave by a certain Mark Paoletta. NPR could not determine why Halperin and Sara were on vacation.
“The bureau has been instructed to stop. I don’t think it’s appropriate or legal to stop all supervisory activities and exams. I can’t serve as supervisory director,” Saras wrote in her email.
Halperin sent a similar message.
“I don’t believe these terms can effectively serve my role. It protects American consumers,” he writes. “Since October 2021, we have secured a $9.5 billion fine and a consumer relief order. It has been an honor to serve you.”
The CFPB was created in the wake of the 2008 financial crisis and is part of the Federal Reserve system that receives funds. The Bureau is an executive body, and its supervisors monitor businesses across the country to ensure they are following consumer protection regulations.
The bureau has been the focus of the Trump administration’s attention and rage, and has recently had some dramatic moves to stop the agency’s work.
Order barrage
Later last week, employees of Elon Musk’s Doge team entered CFPB headquarters and were given access to major systems. The government’s efficiency department was created through one of Trump’s executive orders.
Vought then took over as acting chief for CFPB, and announced on Saturday night that he would not seek money in the department’s next fundraising round.
Vought also ordered staff to quit their job as agents, including supervisors. On Sunday, agency staff were told that CFPB’s Washington headquarters would be closed that week and that they would not be allowed to enter. On Monday, staff and contractors were told they could not perform work tasks.
Rohit Chopra, who headed the agency until he was fired by President Trump earlier this month, was interviewed on the morning edition of NPR on Monday, where he described the work that the CFPB does on behalf of consumers.
“There are all sorts of fraud and abuse targeting people in our country,” Chopra naming lawsuits filed against major banks such as JPMorgan Chase, Bank of America and Wells Fargo. I did.
“Really, CFPB protects people’s pocketbooks every day, and the future looks uncertain,” he said.
