Treasury Secretary Bennett Takes Helm at CFPB, Signaling Potential Shift in Consumer Protection

The U.S. Treasury Secretary, Scott Bennett, has been appointed as the acting director of the Consumer Financial Protection Bureau (CFPB), according to sources familiar with the matter. This move signals a potential shift in the agency's enforcement and regulatory approach, away from the strict stance taken under Rohit Chopra's leadership.

Chopra, who was appointed during the Biden administration, had imposed billions of dollars in fines and consumer restitutions on major banks such as Wells Fargo, Goldman Sachs, and Citigroup. His tenure was marked by a focus on consumer protection and holding financial institutions accountable for misconduct.

Bennett, a former hedge fund manager and advocate of Trump's economic policies, took office as Treasury Secretary last week. His wide-ranging agenda includes tax cuts, deregulation, and trade rebalancing. As the acting director of the CFPB, Bennett may bring a different perspective to the agency's mission and priorities.

The CFPB was established in the wake of the 2008 financial crisis to protect consumers from abusive financial practices. Its leadership and policies have been a subject of political debate and controversy since its inception. The appointment of Bennett as acting director may indicate a shift in the agency's approach to consumer protection and financial regulation.