Written by Douglas Gilson, Nobor Anand, House of Schroeder and Esla Beni
(Reuters) – At the JPMorgan Townhall meeting on Wednesday, CEO Jimmy Damon was asked whether the Trump administration decision was to stop sudden work at the Consumer Protection Office (CFPB) and questioning its existence was good news of this industry.
Damon told his employees that it was difficult for the bank when “policies turned back and forth” and that he preferred consistent policies. He said that CFPB had some good consumer protection rules, especially when it comes to areas such as the on -day payment lenders, according to the registration of the meeting reviewed by Reuters, which was not previously reported. However, it was not a mourning for the dismantling of the agency.
“The only good that I will say about CFPB is that there are good consumer protection rules,” said Damon. He added that the agency “has exceeded its authority on a large scale” and used an obscene word to describe the former CFPB director, Rohit Chopra, a democratic that led an aggressive enforcement campaign against this industry. JPMorgan was among three banks that CFPB prosecuted in December, claiming “widespread” a “widespread” premium on Zelle’s payment service.
Jpmorgan refused to comment. A spokesman for the Chopra refused to comment.
Established in 2010 to protect consumers after the boundary of the dirt mortgage and other poor industry practices that led to the 2008 financial crisis, CFPB was moved by conservatives and industry, which accused it of overcoming excessive implementation.
However, the sudden decline during the weekend by the Trump administration, including the Ministry of Government Efficiency led by Illon Musk (DOGE), caused the revolution of those who organize it, according to half a scale of people who advise or work in banks or financial technology companies Organized by CFPB.
The sudden suspension of work has a set of consequences: it leaves a lot of consumer financing, from mortgage companies to payment applications, not subject to supervision, and removes a place where consumers can file complaints about their service providers. It also leaves many investigations suspended in balance, according to industry consultants in addition to many current and previous CFPB employees.
In the industry, which has held a set of conversations to assess the Escouble effect of CFPB, anxiety highlights that a group of government organizers can face CFPB issues, which may leave them more than one inlaid requirements, and the beginning of the industry on the industry. He said.
Some executives also raised concerns during industry calls about Dog’s access to their own data collected by CFPB and asked about who the Musk team was responsible for, given the plans of the billionaire businessman for his competing paid company, one of them said the executive of General Pentech.
Musk and President Donald Trump said that the role of a businessman in Dog is no conflict of interests.
CFPB holds huge amounts of data, including secret supervisory reports, examination results, investigation records and compliance records that include personal information for customers, their accounts, the history of transactions and product preferences.
Industry executives said they were concerned about the lack of the applicable plan.
“This is something that banks were always concerned – organizing patching rather than knowing who deals with it,” said James Palatin, a previous pressure groups in the American Commercial Banking Association, which now runs its consulting company. “It is easy to say,” let’s get rid of something, but there must be an existing plan. “
White House spokesperson, CFPB, and Douj did not respond to suspension requests. Musk did not respond to the comment request.
The organizational void
Whether the agency is still present in some form and what its function is still seen. The White House has nominated Jonathan Mickeran, a former member of the Federal Deposit Insurance Corporation, as a full -time manager for CFPB, prompting some analysts to doubt that the administration does not want to eliminate it completely. Micahnan did not respond to a request for comment.
The feelings of the mixed industry from relief and anxiety emphasize how the new Trump administration’s federal administration is likely to lead to completely incomprehensible consequences.
On Tuesday, Jerome Powell, the President of the Federal Reserve, told Congress that there is no other federal organizer that imposes many consumer financing laws in its absence. Some experts said that the organizational void can leave Americans every day vulnerable to predators, especially from the light parts of the financial industry and generalize confidence in general.
“The banks are about confidence, which is an industry that distorts organizational uncertainty,” said Matthew Pepene, who is participating in King & Spaling International Financial Services. So the longest -term question is, “What is the effect that the new trend will make on consumer confidence and the organizational certainty of the market participants? “
Books are closed, laptops left behind
While writing on the wall of CFPB, the speed of events has left industry and employees amazed.
On February 7, Friday night, Trump appointed Russell as Acting Director for CFPB. Feon, a Trump budget director, was one of the project engineers 2025, a governor statement published by the Heritage Foundation that called for the cancellation of CFP.
A spokesman for the management and budget office, which disappears, did not respond to the request for comment.
Vogue has quickly ordered a temporary closure of the agency. A CFPB employee has said that they have a small warning that many employees have left their own laptops and their personal effects, such as family photos, artwork for children and plants preserved with a bowl, on their offices.
Another employee said that hundreds of banks ’employees who were appointed to go and examine books in banks and other financial companies on Monday must change travel plans. This person said that the enforcement lawyer stopped their computers in the middle of the road through documentary reviews about the investigations.
This week, those who face a challenge or confrontation from CFPB were trying to find out whether they would have to continue to follow up or defend these situations. Cases hanging against companies including Capital One, which have been accused of deceiving customers in high interest account accounts; Meta, who said that the announcement of financial products is being investigated; Experian, who faces a lawsuit claiming to have offended complaints.
The comment refused the comment. Experian and Capital One did not respond to the suspension requests.
“In lawsuits with CFPB,” said Anastasia Stoll, a partner at Stinson Law Company.
(Participated in the coverage of Douglas Gilison, House of Schroeder, Nobor Anand, Hannah Lang and Esla Beni; additional reports by Lanana Ngwin and Tatiana Botzer; writing by Megan Davis; edited by Baritosh Bansal and Anna driver)
