Rohit Chopra, the former director of the Consumer Financial Protection Bureau (CFPB), argued Monday that shutting down the agency is “begging for another financial crisis,” as the Trump administration takes aim at the CFPB.
“We had this experiment before in the years leading up to the subprime mortgage crisis, and as we all know, it was an absolute catastrophe,” Chopra told MSNBC. “We had a whole set of mortgage lenders and other companies that had basically no oversight, and we saw trillions of dollars of wealth in our country disappear.”
“It just feels like shutting down the CFPB is begging for another financial crisis … At the end of the day, I don’t see any reason why we shouldn’t enforce the laws on the books,” he continued.
The agency was created in the wake of the 2007-08 financial crisis. It has long been a target of conservatives, who argue that it has overstepped its authority and the bounds of the Constitution.
The CFPB saw a flurry of action over the weekend, shortly after Russell Vought, the newly confirmed director of the Office of Management and Budget (OMB), was tapped to lead the agency.
Vought reportedly ordered employees to “cease supervision and examination activity” on Saturday, before telling staff Monday to “stand down from performing any work task.” The agency’s chief operating officer also informed employees Sunday that the CFPB’s headquarters would be closed for the week.
The series of events closely mirrors those taken at the United States Agency for International Development (USAID) last week, making employees and observers nervous about what comes next.
At USAID, the Trump administration similarly told staff to cease work and not come into headquarters before attempting to place thousands of employees on administrative leave. However, the move was blocked by a federal judge Friday.
