A US federal judge, Amy Berman Jackson, issued a ruling on Friday that suspended the mass firings carried out at the Consumer Financial Protection Bureau (CFPB) the previous afternoon. The decision came after the Trump administration dismissed between 1,400 and 1,500 employees, a move that removed nearly 90% of the agency’s workforce.
In her ruling, Judge Berman Jackson expressed serious concerns over the actions taken by the administration, noting that they appeared to violate previous court orders that had set conditions on the dismissals. “I am deeply concerned given the scope and speed of the agency’s action,” she said in her decision. The judge’s remarks highlighted the urgency of the situation, pointing to the abruptness of the firings, which could drastically affect the agency’s ability to function effectively.
The decision to lay off such a large portion of the CFPB’s staff raised questions about whether the agency was adhering to a preliminary injunction issued by Judge Berman Jackson just last month. The injunction had temporarily blocked efforts by the Trump administration to shut down the CFPB, a regulatory body established to protect consumers’ rights in the financial sector.
The sweeping layoffs sparked concern over the future of the bureau and its ability to continue overseeing the financial marketplace. The agency, which had employed approximately 1,700 individuals, was already under scrutiny from conservative critics, who have long accused it of overreach. Elon Musk, a prominent adviser to President Trump, even suggested plans to “delete” the CFPB, citing concerns about its influence.
The Consumer Financial Protection Bureau was created in the wake of the 2008 financial crisis to ensure that consumers are not exploited or harmed by financial institutions. With this recent legal development, the future of the bureau remains uncertain, and its ability to protect consumers could be significantly impacted if the firings are not reversed or halted in the coming weeks.
