Elizabeth Warren (D-Mass).
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A Democratic member led by Massachusetts Senator. Elizabeth Warren A forum was held Tuesday against actions taken by the Trump administration and Elon Musk to neutralize the Consumer Financial Protection Agency.
Guests at the event included a retired veteran of the agency, a mortgage broker said the CFPB helped curb abuse in the industry, and the bureau’s former supervisory chief.
But the key point of the senator is Elon Muskthe driving force behind the so-called government efficiency sector. Warren said that although Musk was invited to Washington, D.C., he did not show up.
Members question whether Musk has conflict in his efforts to remove the CFPB, highlighting his Recent plans To start digital payment services in the social media network X he owns.
“By grasping control over the agency, Musk can now take root with all the confidential data from CFPB, which has access to these potential competitors,” Warren said. “When Musk launched his new app,” he said. , he faces oversight from the CFPB. His plan seems to be to eliminate the watchdog.”
Musk and X’s representatives did not immediately respond to a request for comment.
Doge agents gained access to the CFPB system earlier this month, after a short time after the agency’s new leadership closed the agency’s headquarters, frozen nearly all activities and abandoned about 200 employees. The CFPB union claims in the lawsuit that the agent acting CFPB director Russell intends to launch more than 95% of the agency’s employees.
“Elon, how do you prove that the shutdown is going to see your peer-to-peer payment plan?” Senator Amy Klobuchar “How do you prove that the shutdown has jurisdiction over many other financial issues you are going to make money and supervising institutions?”
“Secret Sauce”
Answer Senator Chris van Hollen, D.-Md. Former CFPB Supervisory DirectorRegulators say “very sensitive trade secret information” has been retained, including payment services PayPalCashApp and Zelle and online lenders.
“We’ve been working on many digital wallet companies, payment companies, and we have information about the technology they’re using,” Salas said. “We have information about the secret sauce of credit models people use with AI to Decide whether you get a loan.”
At the end of last year, CFPB was taken Steps to supervise Technology giants and payment companies that dominate the market, including apple and Paypal and Prosecution It was used by operators of Zelle Payments Network and three major U.S. banks, which allegedly failed to properly investigate fraud complaints.
Salas added that in addition to confidential data from companies inspected by CFPB, the agency also provided “very sensitive data” for consumers to file complaints. Agent sources say consumers often leave account numbers and other personal data in complaints.
Now, with CFPB and its employees in a difficult position, the problem is that Musk and vought can take campaigns to minimize watchdogs. Federal judges have Stop their effortssaid they are unable to fire employees or clear bureau data for the time being.
“The CFPB has been eliminated, but it is not dead,” Warren said, asserting that only Congress can close the bureau. “The advocates are now asking the judge to enforce the law in court and I believe they will win.”
