The CEO of one of the US’ biggest commercial banks has weighed in on the conversation around consumer protection amid uncertainty about the future of the Consumer Finance Protection Bureau (CFPB).
In an interview shared via Bloomberg’s YouTube channels, Jamie Dimon, CEO of JP Morgan Chase, stated that the way the US government handles consumer protection is in urgent need of a restructuring.
It is unclear whether or not he agrees with the recent developments which have seen what is essentially a shutdown of the CFPB. However, Dimon appears to believe that any attempt to address consumer protection in the US cannot just look at the CFPB.
“Consumers should be protected one way or another, and there is consumer protection coming out of the SEC, the OCC, the Federal Reserve,” he said.
“The question is, how do you design a system that’s good for everybody, that makes sense, (where) it isn’t just the CFPB alone? I think it’s time, in my view, to take a step back and look at all the rules and regulations put in place to create a better, safer, sounder, more consumer friendly system that finances the growth of the United States of America.
“And I believe that could be done, but you can’t do it when you do a little piece, you’ve got to think a step back and look at the whole thing.”
Trump 2.0’s regulatory remit
The beginning of Donald Trump’s second term as US President has, as expected, ushered in a new regulatory era. Financial watchdogs of various sizes, shapes and agendas are in the early stages of being restructured in one way or another.
The most striking developments have occurred at the CFPB, however. Last week, Acting Chair of the CFPB, Russell Vought, told staff at the regulator to cease work on any ongoing projects and investigations.
This has effectively shut the regulator down, but its employees have not taken the order well. A legal challenge was subsequently filed against Vought by the National Treasury Employees Union (NTEU).
It is unclear which direction developments could head at this stage, with the CFPB’s future as an active regulatory hanging in the balance. What is clear, however, is that this is indicative of the wider trend sweeping US financial regulation.
In a widely publicised move, Trump has tasked South African-American businessman Elon Musk with running a new government department, DOGE – the Department of Government Efficiency (DOGE).
As its name suggests, DOGE’s agenda is on cutting waste and maximising efficiency in the federal government, a personal obsession of Musk’s which has been mirrored at his companies like X (formerly Twitter) and Tesla.
DOGE now appears to have turned its attention to the CFPB. Though some have alleged Musk may have self-interests in these decisions, targeting US regulators which have at times investigated his companies, it is indicative of the attitude the Trump 2.0 administration was expected to have – one which places businesses first and regulations second.
