Today, during the Senate Banking Committee nomination hearing for CFPB Director Nominee Jonathan McKernan, Senator Elizabeth Warren revealed that co-presidents Donald Trump and Elon Musk are dropping several enforcement cases initiated by the Consumer Financial Protection Bureau (CFPB). These cases involve large corporations accused of defrauding families.
Senator Warren expressed her concerns about the timing of this decision. She stated, "Mr. McKernan, literally while you’ve been sitting here and you’ve been talking about the importance of following the law, we get the news that the CFPB is dropping lawsuits against companies that are cheating American families, or alleged to be cheating American families. They will not go forward in court."
Warren further criticized what she perceives as an attempt to undermine McKernan's authority and emphasized who she believes is currently controlling the agency. She remarked, "It seems to me the timing of that announcement is designed to embarrass you and to show exactly who is in charge of this agency right now: Elon Musk and his little band of hackers."
The senator also highlighted her belief that Elon Musk aims to dismantle the CFPB despite lacking legal authority. She added, "And we all understand, whether you want to admit that returning $21 billion dollars to families is a good thing, the rest of us understand that the failure to do that is going to hurt American families all across this country."
Senator Warren concluded her remarks by thanking Chairman for allowing her additional time.