A power struggle unfolds at the Consumer Financial Protection Bureau as three senior officials face administrative leave amid agency restructuring.
According to Fox News, Chief Legal Officer Mark Paoletta placed CFPB's supervision director Lorelei Salas, enforcement chief Eric Halperin, and deputy director Zixta Martinez on administrative leave Tuesday, despite claims from two officials that they had resigned.
The dismissals follow direct orders from acting Office of Management and Budget director Russ Vought, who instructed CFPB employees on Monday to halt work activities unless explicitly authorized. This directive came after Treasury Secretary Scott Bessent, who briefly served as acting CFPB director earlier in February, issued similar instructions to staff members.
The agency underwent significant changes when Vought assumed leadership. He implemented strict measures requiring written approval for any work tasks.
These restrictions align with the broader initiative of the Department of Government Efficiency, led by Elon Musk, to investigate federal agencies for potential overspending and corruption.
Halperin's response to his administrative leave came swiftly, with his resignation email sent merely six minutes after receiving notification. The quick turnaround sparked controversy about the nature of his departure. Similarly, Salas distributed a mass email following her notification but did not formally submit a resignation.
Both officials have connections to George Soros's Open Society Foundation, according to a 2021 CFPB press release. Halperin previously worked as a senior advisor to the foundation's U.S. Program, while Salas received a government fellowship from the organization.
The changes at CFPB, an agency created under the Obama administration in 2010, have sparked protests outside its Washington headquarters. Democratic Massachusetts Senator Elizabeth Warren, who initially proposed the agency's creation, emerged as a vocal critic of the restructuring.
Warren addressed protesters with strong words against Elon Musk's involvement in the agency's transformation. She expressed concerns about potential impacts on consumer protection and financial oversight.
A spokesperson representing Salas and Halperin criticized the Trump administration's approach, stating their perspective on the situation. According to Warren:
This is like a bank robber trying to fire the cops and turn off the alarm just before he strolls into the lobby. The financial cops, the CFPB, are there to make sure that Elon's new project can't scam you or steal your sensitive personal data. So Elon's solution, get rid of the cops, kill the CFPB.
Three senior CFPB officials faced administrative leave as part of the Trump administration's broader effort to restructure federal agencies.
The dismissals of Lorelei Salas, Eric Halperin, and Zixta Martinez occurred amid conflicting narratives about their departures, with two officials claiming voluntary resignation.
The situation reflects growing tension between the current administration's efficiency initiatives and Democratic opposition, particularly regarding the future of consumer financial protection oversight.
