Is Trump About to Shake Up the CFPB?

Bloomberg published an article titled “Donald Trump has tools to fire powerful financial regulator in term two,” referring to Consumer Financial Protection Bureau Director Rohit Chopra. The New York Times called Chopra, “Wall Street’s most hated regulator.”

 

The CFPB was established in 2011 to protect Americans against unfair financial practices. However, it was deliberately set up to operate outside of the typical checks and balances found within constitutional law.

 

Chopra claims that the Bureau, under his leadership, enforces high standards for financial institutions and promotes transparency and ethical treatment of consumers. It appears to be unwilling to extend the same standards to their own employees.

 

The CFPB refused to grant its employees a cost-of-living adjustment in 2024. CFPB also increased the pay of top executives. Some managers now earn over $269,000 per year.

 

 

Does the CFPB leadership put itself before consumers and employees? Color me shocked.

 

Since last year, Bureau employees–those who enforce consumer protections –have been without a contract. The Bureau’s employees are left with a management that is quick to demand strict oversight from the private sector but appears unwilling to treat their employees with respect and fairness.

 

The irony is not lost on the CFPB, which in October issued a regulation requiring private employers to obtain consent from their workers and be transparent about the use of data. The rule was intended to protect employees against invasive digital surveillance.

 

Director Chopra defended this rule by saying “Workers need protections at the basic level.”

 

 

Why does the CFPB not apply similar protections to their staff if this is true? Why shouldn’t the Bureau be a role model for the same transparency and ethics it demands of others?

 

CFPB tends to demand high standards of others while being opaque and dismissive with its staff. These contradictions indicate a failure of leadership.

 

Chopra used to be seen as a champion of progressive causes. Ohio Senator Sherrod Brown (D) said during his Senate confirmation hearing that “Rohit Chopra would fight for those who felt they were left on their own.” However, this commitment doesn’t extend to Chopra employees who still wait for cost-of-living raises.

 

Chopra’s tenure is nearing an end. The question now is: Who will want to work for him, after such a strained working relationship with his employees?