A federal judge has declined to interfere in President Trump’s moves at the Consumer Financial Protection Bureau, ruling that it’s too early to say what the administration is doing at the Wall Street cop.
U.S. District Judge Matthew J. Maddox, a Biden appointee to the court in Maryland, said there are conflicting signs about Mr. Trump’s plans, but as of now the CFPB does appear to be carrying out the duties assigned it by Congress.
He specifically said acting CFPB Director Russell Vought’s move to return some of the CFPB budget to the Federal Reserve does not signal a full shutdown.
And the judge said it appears the agency, set up in the wake of the 2008 Wall Street collapse, does still maintain a tip line, a consumer complaint database and enough staff to compile mortgage information, all of which are required by law.
“In sum, the court finds that recent operational decisions made at the CFPB, viewed in combination with other evidence, do not sustain plaintiffs’ unsupported claim that defendants made a final decision or attempt to defund the bureau,” Judge Maddox wrote.
He declined to issue an injunction.
Baltimore had challenged Mr. Vought’s moves, saying a shutdown of the CFPB would hurt its largely Black population.
The CFPB faces other legal challenges.
In one of those cases, the CFPB has entered into a temporary agreement not to relinquish any money back to the Federal Reserve right now. It has also agreed not to erase any of its records.
That agreement will last until the judge in that case rules on an injunction.
