Trump names Treasury Secretary Scott Bessent acting head of CFPB after firing Chopra

Published On Feb 3, 2025, 11:28 AM

President Trump appointed Treasury Secretary Scott Bessent as the acting head of the Consumer Financial Protection Bureau (CFPB) after he fired the former director, Rohit Chopra. Bessent, previously a hedge fund manager and new in his role as Treasury Secretary, is expected to lead the CFPB until a permanent director is chosen. Chopra's leadership was marked by conflict with the banking industry due to his attempts to regulate fees like credit card late fees and overdraft charges, which Bessent may approach differently as he focuses on reducing costs for consumers and stimulating economic growth.

Stock Forecasts

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Scott Bessent's appointment may signal a shift towards a more favorable regulatory environment for banks, which could lead to increased profitability in the financial sector. Expect bank stocks to perform positively as clarity and consistency in regulation return under Bessent's leadership compared to Chopra's tenure.

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Rohit Chopra, who led the Consumer Financial Protection Bureau, was known for his aggressive enforcement and expansion of consumer protection laws.

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