Elon Musk's claim that he wants to 'delete' the Consumer Financial Protection Bureau has drawn mixed reactions, with some calling it 'insane.'


By Daniel Oberhaus

Elon Musk, who was appointed by President-elect Donald Trump to head the Department of Government Efficiency, said that the Consumer Financial Protection Bureau (CFPB), which oversees consumer financial products, has too many overlapping regulatory agencies and should be eliminated. While there is a lot of talk about corruption and abuse of power within the CFPB, some people are citing the CFPB's achievements to criticize Musk.

Trump ally Elon Musk calls to 'delete' US consumer protection bureau | Donald Trump News | Al Jazeera
https://www.aljazeera.com/news/2024/11/28/trump-ally-elon-musk-calls-to-delete-us-consumer-protection-bureau

Musk Wants to Abolish Consumer Agency That Has Been a 'Model of Efficiency' | Common Dreams
https://www.commondreams.org/news/elon-musk-cfpb

Marc Andreessen tells Joe Rogan that Silicon Valley is split in half following Trump's win | Fortune
https://fortune.com/2024/11/27/marc-andreessen-joe-rogan-silicon-valley-split-trump-democrats-republicans/

Musk's call for the abolition of the CFPB was prompted by comments made by Marc Andreessen, co-founder of the well-known venture capital firm Andreessen Horowitz . Appearing on popular host Joe Rogan 's podcast, Andreessen claimed that 'the CFPB, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Trade Commission, and others under the Biden administration have tried to destroy my business in various ways.' 'Their goal is to allow only a few large companies to survive, and to completely regulate and control all companies by the government. The CFPB's goal is to instill fear in financial institutions,' he said, expressing his opinion that these government agencies are corrupt.




Andreessen pointed out that the Biden administration has been particularly aggressive toward startups, trying to crush founders of cryptocurrency and AI companies head-on. In fact, in 2021, the CFPB ordered the suspension of a lending startup in which Andreessen Horowitz invested, citing 'suspicion that it engaged in illegal and deceptive marketing practices.'

Separately, Musk responded to a lawsuit filed against the CFPB for trying to expand its powers without Congressional approval.

In March 2022, the CFPB updated its examination manual to give supervisors the authority to determine discriminatory conduct by financial institutions as 'unfair conduct.' The CFPB argued that this change would allow financial institutions to examine discrimination such as refusing to provide bank accounts or raising fees for religious or political reasons, but the U.S. Chamber of Commerce and banking industry groups sued, claiming that the CFPB was 'expanding its authority without clear Congressional approval.' In September 2023, a federal district court judge issued a permanent injunction against the update, stating that 'the standard for 'unfair' is vague and that Congressional approval is necessary for the CFPB to take such actions with significant political and economic impacts.'

In response to Andreessen's comments and the subsequent discussion of the vetting manual, Musk said, 'We're going to get rid of the CFPB. We have too many overlapping regulators.'




The CFPB was established in 2011 with the objective of regulating consumer financial products and protecting consumers from unfair interest rates and exploitation. It was established in response to the financial crisis that began with the subprime mortgage problem in 2007. In order to prevent a similar crisis from recurring, the US Congress passed the Dodd-Frank Act, which overhauled the financial regulatory system. The CFPB is now responsible for monitoring and maintaining the soundness of the financial system.

The CFPB collects and investigates consumer complaints to uncover 'unfair, deceptive, or abusive' practices, and as of May 2024, the agency reported that it had provided 'more than $20.7 billion in compensation, debt forgiveness, and other monetary relief to consumers.'

However, since its launch, the CFPB has faced opposition from Republican lawmakers for its 'excessively heavy-handed regulations,' and the legitimacy of its activities has been constantly questioned. For example, the think tank Heritage Foundation has called for its immediate dissolution, claiming that the CFPB is 'a highly politicized, harmful, and completely unaccountable federal agency, and unconstitutional.'

In addition to Musk's Republican support, Yahoo Finance reporter Jordan Weissman points out that Musk has long been trying to turn Twitter into an application that can also handle financial transactions, so 'essentially, Musk is trying to get rid of regulators that could be a barrier to his business.'

X (formerly Twitter) acquires remittance service licenses in multiple states to become a financial platform - GIGAZINE



Since being personally selected by Trump to lead the Department of Government Efficiency, Musk has begun calling out government departments and their employees on X, whom he considers wasteful.

Trump supporters have begun to launch personal attacks on government officials whose real names were exposed by Elon Musk on X (formerly Twitter) - GIGAZINE


By Steve Jurvetson

Robert Weissman, co-executive director of consumer advocacy group Public Citizen, condemned Musk's remarks, saying , 'It is absurd and fundamentally corrupt to ask someone with a direct stake in a wide range of businesses to run a project to overhaul the entire operation of the federal government, and this case illustrates exactly why.'

'At this point, the CFPB is so integrated into the financial system that, in my opinion, abolishing it would be madness,' said Helaine Oren, executive director of the American Economic Liberty Project, a consumer advocacy group.

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