Elon Musk’s DOGE Overhauls the Consumer Financial Protection Bureau

At first, things at the Consumer Financial Protection Bureau seemed eerily calm.

The Biden-appointed director of the agency, which was created after the 2009 financial crisis to regulate banks and other lenders, was not immediately fired by President Trump. The lawyers at the agency continued with their business. In late January, they said a remittance company was misleading customers about its fees and ordered it to pay a $2.5 million fine.

And then the chaos began.

On the morning of Feb. 1 — a Saturday — the director was dismissed, as my colleague Stacy Cowley, who has followed every twist and turn of this story, reported. By the next Friday, Feb. 7, Russell Vought, the director of the Office of Management and Budget and a close Trump adviser, was installed as the C.F.P.B.’s acting director. Representatives from the new Department of Government Efficiency, which is led by Elon Musk and is not a formal executive-branch department, arrived and got access to the computer systems.

Musk posted a message on his X account: “CFPB RIP.”

Musk’s cost-cutting team has been operating with little transparency. Members don’t announce what they’re doing, who’s doing it or how. So it’s worth understanding what’s happening at the C.F.P.B., both because of the direct impact on the agency’s work and because it’s a glimpse into the playbook that Musk and his team, working with Trump officials like Vought, seem to be writing in real time.

The panic strategy

Last Saturday, Vought ordered the nearly 1,700 people who work at the agency to stop much of their work. The edict prompted widespread fear and deep concern about the agency’s future. People worried that their work phones and computers were being tracked. One employee I spoke with, who asked not to be identified out of fear of retaliation, felt panic, and then remembered that Vought had spoken in 2023 of his intent to demoralize workers in the civil service.

“We want the bureaucrats to be traumatically affected,” Vought had said.

Some employees tried to plug away at their jobs. Two of them told me that after they saw Musk’s post on X about his team’s preference for working on weekends, when federal offices are closed, they decided they would do the same. On Saturday, they saw three employees from Musk’s team in the bureau’s basement, working in conference rooms with the windows papered over.