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Elon Musk names financial watchdog government agency he wants to ‘delete’

Musk used a clip from ‘The Joe Rogan Experience’ to make the announcement

Ariana Baio
Friday 29 November 2024 18:40 GMT
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Trump chooses Musk to lead DOGE department

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Elon Musk, the billionaire entrepreneur turned political adviser, announced on X he intends to push Donald Trump’s administration to get rid of the Consumer of Financial Protection Bureau, a financial watchdog agency.

The noteworthy announcement, made in a nine-word response to a clip from The Joe Rogan Experience podcast, is part of Musk’s new role co-leading the Department of Government Efficiency (DOGE) – the committee advising Trump on how to cut down on government spending.

“Delete CFPB. There are too many duplicative regulatory agencies,” Musk wrote. 

Elon Musk co-heads the advisory committee the Department of Government Efficiency, which seeks to make significant cuts to federal agencies and departments in order to reduce spending
Elon Musk co-heads the advisory committee the Department of Government Efficiency, which seeks to make significant cuts to federal agencies and departments in order to reduce spending (Getty Images)

His suggestion was in response to businessman Marc Andreessen complaining to Joe Rogan about the independent agency that seeks to protect consumers from predatory practices and enforce rules for financial institutions.

Musk did not elaborate on his idea or explain why he believes the CFPB is “duplicative” to other financial regulatory agencies. But given his proximity to Trump, it is likely his pitch to get rid of the CFPB is serious.

Eliminating the CFPB is also suggested in Project 2025, the conservative mandate created by The Heritage Foundation, which Trump sought to distance himself from during his campaign.

The CFPB was enacted in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act – the legislation created and passed in response to the Great Recession.

The agency aims to protect consumers from unfair, deceptive or abusive financial practices by taking action against companies that break the law. In 2022, the CFPB ordered Wells Fargo to pay $3.7 billion for “widespread mismanagement” that led to misapplied loan payments, wrongfully foreclosed homes and more.

It also provides consumers with personal financial tools and information so people can better manage their money and detect unfair practices.

The agency is independent from the executive branch, similarly to the Federal Reserve. The idea for it originated from then-Harvard Law School professor Elizabeth Warren.

In the years since its creation, the CFPB has been met with intense pushback from Republicans who believe it is overly regulatory.

On Rogan’s podcast, Andreessen complained the CFPB’s role is to “terrorize financial institutions” and incorrectly claimed it acted at the sole direction of Warren.

Andreessen is familiar with the CFPB’s practices because the agency shut down a payday loan company he once invested in, called LendUp, for misleading consumers.

Yet despite Republican and financial institution’s opposition to the CFPB, all attempts to get rid of the agency have been futile.

Earlier this year, the U.S. Supreme Court ruled in favor of the CFPB in a case that challenged how the agency was funded.

But that won’t stop Musk from suggesting it should be eliminated as well – though it would require congressional approval to do so.

The Independent has asked the CFPB for comment.

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