CFPB Enforcement Director Resigns Citing Trump Administration Cuts

Cara Petersen, the acting Enforcement Director at the Consumer Financial Protection Bureau (CFPB), resigned after nearly 15 years, citing the Trump administration's efforts to dismantle the bureau's enforcement function. Petersen condemned the White House-led overhaul, which included drastic staff reductions, dismissal of cases, and termination of settlements that let financial wrongdoers off the hook, describing it as unprecedented and devastating to the bureau's core mission. Since President Trump appointed Russell Vought as acting CFPB director, enforcement actions have been largely halted, with major cases against banks and corporations abandoned or dismissed, and up to 90 percent of staff targeted for firing. Petersen's resignation follows earlier departures of senior enforcement officials amid ongoing legal battles over attempts to reduce CFPB's funding and staffing. Republicans argue the bureau is overly powerful and lacks oversight, while Democrats and agency supporters stress its critical role in protecting consumers within the financial markets. The situation leaves the CFPB without an enforcement director and raises concerns about the future effectiveness of consumer financial protections under the current administration.