Elon and the Oligarchs seemed all about deleting the Consumer Financial Protection Bureau (CFPB) before the Inauguration. Then, reality set in. First, the CFPB is pretty popular. Second, some on Team Trump think it could be used to funnel even more cash to the oligarchy.
Bloomberg News reports on the internal debate:
Trumpโs team has struggled to make selections to replace the leaders of the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, according to people familiar with the matter.
In the meantime, Biden appointees Rohit Chopra, who heads the CFPB, and Michael Hsu, who leads the OCC, have continued to serve in their current roles despite calls from some Trump allies to overhaul agencies.
Why not just go ahead and move forward with a new director?
Some Republicans want to see a consumer watchdog who might take charge of the CFPB and use its mandate to push an agenda that might include protecting everyday Americans from debanking and potential abuses from lending giants.
Others want to eliminate the agency, which has been a political lightning rod since its creation following the 2008 global financial crisis, on the grounds that it lacks accountability and may be duplicative in its mission.
The CFPB has been a great success - returning more than $20 billion to consumers since its inception.
While Trump recently called on Chase and Bank of America to stop so-called โdebanking,โ itโs not clear why anyone would want to bank with these behemoths of badness.
Americaโs largest banks own Zelle. And they are not interested in putting in the resources (money) to stop fraud on the platform OR to help customers who have been defrauded.
JPMorgan Chase, Bank of America, and Wells Fargo reimbursed just 38% of fraud claims on the Zelle platform, according to a July Senate report that looked at disputed unauthorized transactions.
Additionally, the CFPB is holding both bank and nonbank financial players accountable:
First, the Consumer Financial Protection Bureau (CFPB) fined Cash App $175 million - including $120 million in direct payments to customers - for its mishandling of fraud cases.
Consumers who use Cash App typically connect bank accounts to the app. When a fraudulent transaction was reported by a customer, Cash App would direct them to ask their bank to reverse the transaction. Then, Cash App would block that transaction at the app level - leaving the customer without their money and the bank involved in a transaction that originated on the Cash platform.
While Elon and his oligarchic pals may want an end to the guardrails, the voters at the heart of the MAGA movement may well be enjoying the benefits of having a fighter in the corner in the form of CFPB.
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