By Douglas Gillison
(Reuters) – President Donald Trump’s administration still plans to fire all workers at the U.S. Consumer Financial Protection Bureau, effectively neutralizing it, according to witness testimony delivered Tuesday.
The testimony runs counter to CFPB court filings, according to which the agency would continue to exist only in a “streamlined” form, as a judge has temporarily blocked it from continuing with mass dismissals.
However a witness, an agency official who testified Tuesday in a Washington courtroom under a pseudonym for fear of retaliation, said she was privy to conversations with the Office of Personnel Management this month at which officials were still discussing firing all agency workers.
“On the 4th, it was mostly about a cost estimate for the final phase” for firing any remaining workers after as many as 1,200 workers are dismissed, said the witness.
“This was last Tuesday?” asked Deepak Gupta, a lawyer representing an employee union, consumer advocates and others challenging the administration’s moves against the CFPB.
“Yes,” the witness answered, adding that she was unaware of any change in plans to wind down the CFPB entirely.
She appeared under the pseudonym “Alex Doe” and explained that she feared retaliation for providing her testimony.
Representatives for the CFPB and OPM did not immediately respond to requests for comment.
Unlike the government position taken in court papers, Trump and billionaire adviser Elon Musk have said the consumer financial watchdog should be eliminated. Trump has accused the agency of politicized enforcement and the CFPB has been reviled by conservatives and the financial services industry, which have accused it of overreach and overzealous enforcement actions.
Lawyers for the plaintiffs have said scrapping the agency in this manner defies the powers of Congress, which created the agency in 2010 and would be the sole authority able to abolish it.
Justice Department lawyers argue that Trump officials have acted within their authority and are working to comply with relevant laws.
The witness also said officials with Musk’s Department of Government Efficiency had pressured CFPB officials in mid-February to proceed more quickly in processing bulk notices of employee firings as a court hearing approached at which a judge could order a halt to the firings.
Lawyers representing the National Treasury Employees Union and others are seeking a court order directing the Trump administration to undo the actions it has taken so far in dismissing about 200 workers, placing remaining staff on leave and canceling service contracts, among other measures. A judge has yet to rule on the matter after two days of testimony.
(Reporting by Douglas Gillison; Editing by Cynthia Osterman)
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