Vought Defends CFPB Overhaul, Clashes With Democrats At Hearing
By CU Today Staff —
WASHINGTON—Outgoing acting Consumer Financial Protection Bureau Director Russell Vought defended the Trump Administration's sweeping overhaul of the CFPB during a contentious House Financial Services Committee hearing Wednesday, arguing the agency's downsizing and rollback of regulations reduced economic burdens on consumers and businesses, Reuters reported.
Vought, who has led the CFPB in an acting capacity for the past 17 months while also serving as White House budget director, has sought to eliminate most of the agency's staff, rescind numerous regulations and sharply curtail its enforcement activities. President Donald Trump last month nominated former CFPB official and current Capital One executive Brian Johnson to succeed Vought. Reuters reported that Republican lawmakers praised Vought's efforts, while Democrats accused him of undermining the agency Congress created after the 2008 financial crisis.
Rep. Gregory Meeks (D-NY) told Vought, "Sir, I am glad you are leaving," while committee ranking member Rep. Maxine Waters (D-CA) warned, "We are not done with you," suggesting Democrats would investigate his actions if they regain the House majority after the midterm elections, according to Reuters.
Vought defended the agency's transformation by citing a White House Council of Economic Advisers report that concluded CFPB regulations imposed hundreds of billions of dollars in costs on consumers by increasing borrowing costs and restricting access to credit, although Reuters noted consumer advocates and other experts have disputed the report's methodology and conclusions. Vought also argued the CFPB had become an unaccountable regulator with excessive enforcement powers.
Originally reported by CU Today.