Two senior officials at the Consumer Financial Protection Bureau (CFPB) announced their resignations a day after acting Director Russell Vought ordered all staff to halt operations.
In separate memos sent early Tuesday, Lorelei Salas, the agency’s supervision director, and Eric Halperin, its enforcement director, stated they could no longer remain in their positions following Vought’s directive, according to emails obtained by CNBC.
“The Bureau has been instructed to stand down,” Salas wrote. “I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.”
“I don’t believe in these conditions I can effectively serve in my role, which is protecting American consumers,” Halperin said. “Today I made the difficult decision to resign.”
A representative from the Office of Management and Budget, speaking on behalf of the CFPB, told CNBC later on Tuesday that both Halperin and Salas had been placed on administrative leave prior to their resignations.
CFPB (Photo: Greg Nash)Their departures add to the growing uncertainty surrounding the CFPB, which has long been a target of trade groups and conservative critics. The agency has been an aggressive enforcer of financial regulations, reporting in June that it has returned nearly $21 billion to consumers since its establishment in 2011.
Halperin noted that his division, responsible for enforcing consumer protection laws, had secured $9.5 billion in fines and consumer redress since 2021.
Critics of the agency argue that under former Director Rohit Chopra, it exceeded its legal authority in penalizing banks and that his efforts to curb industry fees would ultimately harm consumers.
Tensions among CFPB employees have been high since operatives from Elon Musk’s advisory group, known as the Department of Government Efficiency, arrived at the agency late last week.
Vought was then appointed acting director, effective Friday, and swiftly moved to block new funding for the bureau, closed its Washington, D.C., headquarters, and ordered a freeze on all bureau activities.
“I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,” Salas wrote. “The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.”
