Summary
President Trump nominated Stuart Levenbach to lead the Consumer Financial Protection Bureau (CFPB), a government agency aimed at protecting consumers in financial matters. This move allows his budget director, Russell Vought, to stay on as acting director while the administration plans to close the agency. The decision is part of an ongoing effort to dismantle the bureau, which faces funding issues due to a legal interpretation that it requires profits from the Federal Reserve to operate.
Key Facts
- President Trump nominated Stuart Levenbach to be the new CFPB director.
- The Consumer Financial Protection Bureau was set up after the 2008 financial crisis to protect consumers.
- The nomination allows Russell Vought to remain as acting director while the Senate considers Levenbach.
- The administration intends to close the CFPB, maintaining it mostly nonfunctional.
- The agency's funding issue stems from a legal interpretation requiring the Federal Reserve to be profitable.
- The Federal Reserve currently lacks profit, affecting CFPB's funding.
- Several judges have previously rejected this funding argument, but it's new as a government position this year.
- Sen. Elizabeth Warren criticized the nomination as a tactic to continue closing the CFPB.
