Sen. Elizabeth Warren Warns of Legal Clash over CFPB Shutter
Senator Elizabeth Warren (D-Mass.) asserts that only Congress possesses the authority to disband the Consumer Financial Protection Bureau (CFPB), defying the Trump administration's suspension of its operations.
In a recent Yahoo Finance interview, Warren declared, "It is Congress that created the CFPB, and it is only Congress, not Donald Trump, not Elon Musk... who can actually get rid of the CFPB." She threatened legal action if the administration disregards the law.
Warren and over 200 legislators have urged the removal of Musk's Department of Government Efficiency (DOGE) operatives from the CFPB and the restoration of its systems.
"The law is clear on this, and the courts will enforce the law if Elon Musk and Donald Trump break it," Warren emphasized.
Warren, a key architect of the CFPB after the 2008-2009 financial crisis, believes that the agency's closure would undermine consumer protection.
Despite calls for stabilization through the Congressional appropriations process, Warren dismisses them as "a smokescreen."
The Trump administration is reportedly considering merging bank regulators without congressional authorization, including potentially absorbing the Federal Deposit Insurance Corporation into the Treasury Department.
Warren rejects these proposals, arguing that Congress alone can dissolve such agencies and highlighting the critical role of FDIC deposit insurance.
"Do we really think our financial system is going to operate better if we get rid of the FDIC insurance?" she asked.
Warren shares President Trump's desire for lower interest rates, urging the Federal Reserve to cut rates to support family finances.
She believes the economic disruption caused by the administration's actions justifies her stance on interest rates. However, she emphasizes the need to curb economic instability for the benefit of American households.