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Judge halts CFPB firings
- A federal judge has ordered the Consumer Financial Protection Bureau and its acting director, Russ Vought, not to terminate any agency employee without cause related to job performance or conduct until March 3, following a hearing in the case.
- The National Treasury Employees Union had sought a block on a potential 'mass firing' that could have impacted 95% of the bureau's workforce
- The court order also prevents the deletion or impairment of data covered by the Federal Records Act and limits transfers from the bureau's reserve funds.
- Former CFPB chief technologist warned that the deletion of data could have severe consequences on the agency's ability to identify risks and respond to threats in the financial system.
- Concerns were raised about potential market manipulation and unfair competition if sensitive consumer financial data or enforcement records were accessed and deleted.
- Last week, the CFPB terminated approximately 10% of its workforce, with a similar reduction seen at the Federal Deposit Insurance Corp.
- Efforts were made in court to halt further firings at the CFPB, which affected employees without notice and access to severance.
- Employees of the CFPB are entitled to 60 days' notice of job loss by law, but recent terminations left many without adequate planning time for their futures.
- In the midst of these developments, employees were instructed to cease work, and a tip line was established to report on any perceived work being conducted.
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