Trump administration, Musk’s DOGE plan to fire nearly all CFPB staff and wind down agency, employees say

Published On Feb 28, 2025, 9:31 AM

The Consumer Financial Protection Bureau (CFPB) is reportedly planning to lay off nearly all of its 1,700 employees as part of a broader strategy to wind down the agency. This action is linked to a project led by the Trump administration and Elon Musk's team, which aims to significantly reduce the size of the CFPB. Employees indicated that the plan involves phased layoffs, ultimately reducing CFPB to just five employees. The drastic changes occur amidst calls from financial institutions and political figures who have criticized the CFPB's operations.

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The potential wind down of the CFPB could lead to increased regulatory uncertainty in the financial sector. Companies that may have benefited from the CFPB's oversight could see stock prices rally, as deregulation may be perceived positively. Conversely, firms banking heavily on the goodwill of regulatory stances might face short-term volatility.

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