Restructured Consumer Financial Protection Bureau to reduce consumer protections
June 10, 2025
Multiple Guardrails
Founders' Principles Violated
Guardrails Violated
Trigger
President Trump signed executive order on June 10, 2025 restructuring the Consumer Financial Protection Bureau (CFPB), reducing its independence and shifting focus from consumer protection to 'regulatory efficiency' and 'industry competitiveness.'
Action Taken
Signed executive order on June 10, 2025 restructuring CFPB to reduce consumer protections. Order shifted CFPB's mission from consumer protection to 'regulatory efficiency' and 'industry competitiveness.' Reduced CFPB's enforcement authority and ability to issue consumer protection rules. Replaced consumer protection focus with industry-friendly policies. Critics argued this undermined the agency's core mission established by the Dodd-Frank Act.
In His Own Words
"The CFPB has been too aggressive in its enforcement."
"We need to balance consumer protection with industry competitiveness."
"The bureau needs to be restructured to be more efficient."
What's Wrong
Executive order restructuring independent agency without Congressional authorization. Dodd-Frank Act established CFPB as independent agency with specific consumer protection mission. Restructuring bypassed normal regulatory process and Congressional oversight. Reduced enforcement authority undermines agency's statutory purpose.
Impact
Institutional: Undermines CFPB's independence and consumer protection mission. Legal: Questions about authority to restructure agency without Congressional action. Operational: Reduced enforcement authority and consumer protection capabilities. Economic: Benefits financial industry at expense of consumer protections.
Sources & Full Details
Primary Sources
Background
The Consumer Financial Protection Bureau was established by the Dodd-Frank Act in 2010 as an independent agency focused on consumer protection in financial services. Trump's executive order restructured the agency to reduce consumer protections and shift focus to 'regulatory efficiency' and 'industry competitiveness.' Critics argued this undermined the agency's core mission and violated the statutory framework established by Congress.
Why Level 3?
Multiple guardrails bypassed: independent agencies, separation of powers, Congressional authority. Measurable harm to consumer protection mechanisms and institutional integrity. Undermines statutory purpose of agency established by Congress.