Trump's CFPB Nomination: A Tactic to Keep Agency in Limbo

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In a move that has sparked controversy, President Trump has nominated Stuart Levenbach as the next director of the Consumer Financial Protection Bureau (CFPB). However, the administration claims the agency is still set to be shut down. Levenbach, an associate director in the Office of Management and Budget, brings significant experience in science and natural resources. If confirmed, he would take over from acting director Russell Vought, who has been instrumental in dismantling the agency. The nomination is not expected to be a serious bid for confirmation, but rather a way to extend Vought's tenure as acting director beyond the 210-day limit. Under the Vacancies Act, Vought's clock was set to expire, but Trump's nomination has paused the countdown until the Senate makes a decision. The CFPB has been severely hampered this year, with many employees ordered to stop working. The agency's primary focus has been on unwinding regulations and rules introduced during Trump's first term and the Biden administration. Critics argue that Trump's move is a ploy to keep the agency in limbo, allowing Vought to continue dismantling it. The White House's stance that the CFPB cannot operate without the Federal Reserve's profit has been met with skepticism. Several judges have rejected similar arguments, and it remains to be seen how this latest development will unfold. Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, has condemned Trump's move, saying it amounts to an attempt to keep Vought as acting director indefinitely. The CFPB was created after the 2008 financial crisis to protect consumers from bad actors in the financial system, and its future remains uncertain.