Elon Musk wants to ‘delete’ federal financial watchdog as ‘DOGE’ begins work
Elon Musk on Wednesday called for the elimination of the Consumer Financial Protection Bureau, one of the nation’s most powerful watchdog agencies, signaling it could be scrapped as part of a planned review of government spending ordered by President-elect Donald Trump.
“Delete CFPB,” Musk said in an early-morning post on X, the social media site he owns, categorizing the bureau as an example of “too many duplicative regulatory agencies” in Washington.
Formed in the wake of the 2008 banking crisis, the CFPB has a broad mandate to protect Americans from unfair, deceptive or predatory financial practices. Its current director — Rohit Chopra, a Democrat — has recently issued rules meant to shield people from medical debt, make it easier for them to switch banks and limit the fees they face from falling behind on their credit card bills.
Since its founding, the CFPB has secured more than $19 billion in consumer relief, while penalizing large financial institutions and technology firms for allegedly mishandling Americans’ money. Its oversight often has stoked the ire of the nation’s biggest banks, credit card companies and other lenders, which have sued the bureau repeatedly over charges of regulatory overreach.
Musk did not elaborate on his personal objections to the CFPB, and he did not immediately respond to a request for comment. But his opposition is significant, as he works to set up the “Department of Government Efficiency,” a new entity outside of government that has encouraged Trump to sidestep Congress and push the limits of executive power once he is in office.
The billionaire owner of SpaceX and Tesla registered his disapproval in response to comments by Marc Andreessen, a Silicon Valley venture capitalist, who faulted the CFPB on a podcast this week for “terrorizing financial institutions.” Andreessen is a Trump supporter and donor who is advising Musk and his outside organization, known as DOGE, which is co-led by fellow tech entrepreneur Vivek Ramaswamy.
Andreessen’s firm has backed a number of financial technology companies under the CFPB’s watch. In a series of enforcement actions that predate Trump’s first term, the agency in 2021 notably shuttered LendUp Loans, alleging it misled customers about its short-term, high-rate loans and overcharged military service members. At the time, the CFPB specifically highlighted that the company was backed by investors including the Andreessen Horowitz venture capital firm. [Continue reading…]