CFPB Crisis: Resignations and Controversy Under Trump Administration

Top officials at the U.S. Consumer Financial Protection Bureau (CFPB) resigned, opposing the Trump administration's directive to cease agency activities. Enforcement Director Halperin and Supervision Director Salas cited untenable work conditions, while the White House claimed they were administratively placed on leave for insubordination. Protests and legal challenges ensued.

In a dramatic move, top officials at the U.S. Consumer Financial Protection Bureau (CFPB) have resigned, alleging interference from the Trump administration. According to internal communications reviewed by Reuters, Enforcement Director Eric Halperin and Supervision Director Lorelei Salas stepped down protesting the halt in agency activities.

The White House Office of Management and Budget, however, countered those claims, asserting that the officials were placed on administrative leave due to insubordination. Deputy Director Zixta Martinez was also placed on leave without an explicit reason, raising more questions about internal agency operations under the new leadership.

As the CFPB, created post-2008 financial crisis to safeguard consumers, finds itself at a crossroads, the situation has sparked protests from staff, union members, and Democratic lawmakers. The collective outcry underscores the legal and ethical issues surrounding the agency's abrupt operational shifts under OMB Director Russell Vought's interim leadership.

(With inputs from agencies.)