CFPB's life is on the line (again) at hearing this week

A hearing Tuesday in federal court in Washington could determine the fate of the embattled Consumer Financial Protection Bureau.The big picture: Dismantling the agency puts the stability of the financial system at stake, former officials and consumer advocates say.The CFPB is responsible for key pieces of the mortgage lending process, which ensure the smooth functioning of the housing market.Without the agency, Americans will have less protection from financial fraud.Catch up quick: Earlier this month, the White House fired about 90% of the agency's workforce, effectively gutting it.The move was challenged in federal court, and Judge Amy Berman Jackson blocked layoffs ahead of the hearing.Some of the Trump administration's other actions targeting the CFPB had already been knocked back by Jackson.Where it stands: Both sides of this case filed a flood of documents over the weekend that led her to postpone the hearing to Tuesday from Monday.Mark Paoletta, the chief legal officer at the CFPB, defended the Trump administration's actions: "An approximately 200 person agency allows the Bureau to fulfill its statutory duties."The other side: The plaintiffs, represented by the National Treasury Employees Union, filed 19 declarations from CFPB employees, who say it is not possible for 200 people to fulfill the agency's statutory duties.They say the White House and DOGE did not take care in engineering these cuts, that senior leaders were not consulted about the impact of terminations, and that if the job cuts had not been paused their offices would not have been able to do their work.Zoom out: Eliminating the bureau has been a goal of conservatives for some time, explicitly delineated in Project 2025.The principal author of that plan, Russell Vought, heads the Office of Management and Budget and serves as the CFPB's acting director.The agency's legitimacy was upheld by the Supreme Court in a case decided a little less than a year ago.What to watch: The Senate has put off a vote to confirm President Trump's nominee to lead the agency, Jonathan McKernan.By the time he takes that role, there may be a lot less work for him to do.

Comments

World news

China finally reveals how Covid-19 started – and it's all America's fault

Comments

Similar News

CFPB's fight to survive happens to be its kind of fight

World news

China finally reveals how Covid-19 started – and it's all America's fault

Mothers with newborns forced to leave children behind in India as diplomatic row with Pakistan deepens

The little-known disorder that causes RFK Jr.’s raspy voice

Labor wins Australia election as ‘Trump factor’ swings voters

Tourist taking selfie with ‘fake’ crocodile realises his mistake the hard way

Reform UK in bid to shed ‘boys’ club’ image with election of high-profile women

A watershed moment for the NHS this week – but did anyone actually notice?

Ibiza and Majorca holiday flights cut demanded by islands' government in war on tourists

'The truckers are scrambling': Trump's tariffs hit drivers, L.A. port workers hard

Fired federal prosecutor claims ex-Fatburger CEO's 'smears' reached White House

Tariffs on car parts entering the US come into force

Tunisia jails ex-prime minister on terrorism charges

Captive-bred axolotls thrive in Mexican wetlands, researchers find

After Leading a Liberal Comeback, Carney Hits the Ground Running

Cardinal Parolin, Leader of Papal Conclave, Is Also a Top Candidate

As China Looks for Way Out of U.S. Trade Deadlock, Fentanyl Could Be Key

These Contentious Issues Could Determine Who Becomes the Next Pope

Terrifying moment plane crashes at iconic Riviera Country Club in shock emergency landing as golfers left stunned

Prince Andrew MUST ‘come clean and confess’ to Virginia Guiffre’s family after tragic death, demands lawyer

What the Tariffs Have Done to a Fledgling Small Business

Putin army horror as soldier goes on shooting rampage in Russian village

'There is nothing wrong with taking a stand against Israel's genocide and occupation'

Russian drone attack injures 47 in Ukraine’s second largest city Kharkiv

Pakistan test fires ballistic missile as tensions with India spike after Kashmir gun massacre

Why some ‘frustrated’ NDP voters flipped to Conservatives in the election

On the Brink: Online trading groups filling an ‘overwhelming’ gap for families

The urgent problem of intimate partner violence and how New Brunswick plans to respond

Horse with cognitive disorder defies odds thanks to generosity of strangers

Quebec passengers stuck on Porter Airlines plane for 7 hours recall ‘nightmare’ experience

Recording reveals details about IDF arrest of Gaza paramedic after aid attack

No, we don't want to be in your workout video

Woman killed in Thessaloniki bomb explosion as police probe Greece bank attack plot

Why Andrea Jenkyns’s success is a risk for Farage

100,000 people give up wild swimming due to Britain’s polluted rivers

I smacked my son – now, years later, I wish I hadn’t

Five people survive 36 hours in alligator-infested swamp after plane crash

America’s Vietnam War Opponents Who Fled to Canada Reflect on the Past and Future

Russians face soaring bills as Kremlin drains economy to fund war says ex-banking chief

Panic in Ukraine as second largest city on fire after Putin's overnight attack

Letters: Want rid of SNP and Labour? Learn a lesson from England

Camley's Cartoon on Trump's Turnberry hopes

Will Anthony Albanese be first Australian PM in 21 years to witness two consecutive election wins?

Woman dies in Greece when bomb explodes in her hands

Trump posts image of himself as pope on Truth Social. Critics erupt

Conclave: What goes on behind closed doors to elect a new pope

Woman killed in Greece after bomb explodes in her hands during attempted attack

Worshipers stampede at a temple in India, killing at least 6 and injuring dozens

Workers install Sistine Chapel stove where ballots are burned during papal conclave

Woman dies when bomb she was carrying explodes in Greek city, police say

South Korea’s main conservative party nominates Kim Moon Soo as its presidential candidate

Russian drone attack wounds at least 47 in Ukraine’s second city, Kharkiv

Woman killed in explosion when bomb she was carrying went off in her hands

Woman dies in Greece after bomb explodes in her hands

Democrats waited for Trump to crumble. Now they’re starting to fight back

Ukrainian troops to join UK's VE Day procession as Putin's war rages on

Nuke strike could plunge US into blackout like Spain at ANY minute – weapon Trump needs now to protect 340million people

Woman, 38, killed after bomb explodes in her hands in massive blast in Greece as cops probe plot to blow up bank

Hamas terrorists who murdered, raped & kidnapped innocents will be hanged in first Israeli death penalty in six decades

‘I worked at the Vatican - here’s why this cardinal may be the next pope’

The real reason why Trump's hope for 'big deal' will be 'dashed'