2 days Ago
Her resignation message, Petersen also addressed the White House's efforts to remake the agency, saying, "I have served under every director and acting director in the bureau's history and I have never seen such a complete disregard for the bureau's independence.
Accusations of Rolling Back Enforcement
Petersen criticized what she called a hollowing out of the bureau's enforcement through staff reductions, dismissal of cases and abrogation of settlement contracts. Her departure comes after the CFPB's enforcement and supervision chiefs stepped down earlier to protest ongoing changes.
Current CFPB leadership, including acting Director Russell Vought and chief legal officer Mark Paoletta, has been trying to slash the workforce by 90 percent and dismantle much of its enforcement action. Several high-profile cases, including against Capital One and Walmart, were dismissed or reversed.
Political Rift on Role of CFPB
Created after the 2007–2009 financial crisis, the CFPB was intended to oversee financial services and shield consumers. But Republicans have long contended the agency wields too much power with minimal oversight. Democrats and consumer advocates, meanwhile, argue that it's an important part of keeping financial institutions honest.
"While I wish you all the best, I worry for American consumers," Petersen said in her parting email. A federal court in Washington is still considering the administration's effort to lift an injunction that would explicitly prevent the destiny of CFPB employees from being fired.
