The fate of the CFPB and why we should care

Diane Rehm: On My Mind

On February 7, billionaire Elon Musk posted a message on his social media platform X: “CFPB RIP,” along with a tombstone emoji.

In the days that followed, the workings of the government’s financial industry watchdog created in the aftermath of the 2008 financial crisis essentially ground to a halt.

More than a hundred and fifty employees were let go, with more layoffs expected. Donald Trump has explicitly said he wants to get rid of the agency. And when you try to access the CFPB’s website, you get an error message.

So, can the Trump administration actually kill the CFPB? Mallory SoRelle says no.

SoRelle is an assistant professor of public policy at Duke University and author of “Democracy Declined: The Failed Politics of Consumer Financial Protection.” She explains that only Congress can shutter the agency. But, she adds, the actions the Trump administration have taken so far are “fundamentally shifting the playing field in favor of the financial industry and away from consumer protection.”

SoRelle joins Diane on this week’s episode of On My Mind to talk about the history of the Consumer Financial Protection Bureau and what would happen if it went away.