Yesterday, Senator Elizabeth Warren accused Elon Musk and Donald Trump of leaving American consumers completely exposed to financial exploitation after “illegally shutting down the Consumer Financial Protection Bureau (CFPB).”
Elizabeth fought to establish the CFPB in 2011, and she has come forward to slam the decision as an assault on financial regulation, saying, “Donald Trump and Elon Musk have just declared open season on every consumer in America.”
Elon’s Department of Government Efficiency (D.O.G.E.) took control of CFPB operations last week. The eccentric billionaire confirmed the takeover with a post on X that read, “CFPB RIP,” alongside a tombstone emoji. This has forced the consumer watchdog agency to halt operations, sending its employees home and freezing its enforcement activities.
D.O.G.E staffers gain full access to CFPB’s data and systems
The takeover actually began last Thursday when four D.O.G.E staffers—Gavin Kliger, Luke Farritor, Nikhil Rajpal, and Jordan Wick—arrived at CFPB headquarters in Washington, D.C. They initially had read-only access to the agency’s internal records, including personnel files, procurement details, and financial reports.
But by Friday night, they were granted full administrative access to CFPB’s Supervision Examination System, which stores confidential bank examination reports and consumer financial data.
By Sunday morning, the agency was effectively non-operational. Employees were instructed to stop work, and the CFPB’s entire enforcement arm was dismantled. The agency, which has returned $20.7 billion to consumers since its inception, no longer has the power to take action against predatory lenders, payday loan scams, or banking fraud.
The escalation followed an order from Russell Vought, head of the White House Office of Management and Budget (OMB). According to a report by Bloomberg, Vought granted D.O.G.E unrestricted access to CFPB records late Friday—about 90 minutes before he was named acting director of the CFPB.
The email, sent by CFPB Chief Information Officer Chris Chilbert, directed agency staff to onboard D.O.G.E personnel and provide them with building access, email addresses, and unrestricted permissions. Chilbert tried to reassure employees, writing, “I know there’s a lot going on in the press and on social right now. It’s hard to separate fact from fiction.”
The internal confusion didn’t last long. By Friday evening, Vought sent another email, which read: “I’m sending this e-mail in my capacity as acting director of the Bureau of Consumer Financial Protection. See attached letter which has been signed by me. This e-mail also constitutes my authorization to begin work under the agreement.”
Within hours, the CFPB’s official X account was deleted, and visitors to its website were greeted with a “404 Page Not Found” error.
Elon’s payment ambitions and the end of CFPB oversight
The timing of the CFPB’s collapse coincides with Elon’s growing presence in the financial sector. Just nine days before the D.O.G.E takeover, X announced a deal with Visa to facilitate peer-to-peer payments.
The CFPB had finalized rules in November that would have brought Elon’s payment services under its jurisdiction. But now, with the agency gutted, that oversight is gone.
The memorandum of understanding between D.O.G.E and CFPB, a document carrying the Executive Office of the President’s seal, grants Elon’s team full and immediate access to agency records, IT systems, and sensitive enforcement data.
It also states that D.O.G.E will “champion the use of modern technology development and management approaches.” The vague wording has fueled speculation that Elon’s team may use CFPB’s data to advance his financial technology ventures.
Elizabeth called the shutdown a direct attack on consumer rights, warning that banks, lenders, and payment processors are now operating without federal oversight. She said: “If Congress wanted to shut down the CFPB, they have the power to do it. That is the power allocated to Congress. It is not the power allocated to Elon.”
Project 2025 and the larger effort to restructure government
D.O.G.E’s actions are part of a broader Trump administration effort to overhaul federal agencies, a strategy outlined in Project 2025, a policy blueprint drafted by the Heritage Foundation.
Earlier this month, the same D.O.G.E team played a key role in dismantling the U.S. Agency for International Development (USAID).
Republican lawmakers have not formally voted to abolish the CFPB, despite years of criticism of the agency. Elizabeth argues that’s because the agency’s mission is popular with both parties.
“Nobody likes getting cheated by a giant bank,” she said. But with no enforcement arm left, she warns that financial institutions now have free rein to operate without accountability.
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