In Asheville, N.C., on August 14, 2024, former President Donald Trump, the Republican presidential nominee, engaged in discussions about the economy with investor Scott Bessent. On Monday, Bessent announced his appointment as the acting director of the Consumer Financial Protection Bureau (CFPB), following the departure of former Director Rohit Chopra. Chopra confirmed his exit in a letter shared on social media, stating that his term at the agency had “concluded.”
Bessent, who previously served as a hedge-fund manager and was confirmed as Treasury Secretary on January 27, expressed his eagerness to collaborate with the CFPB to further Trump’s initiatives aimed at reducing costs for Americans and fostering economic growth. Chopra, appointed by former President Joe Biden in 2021, frequently clashed with the banking sector over his push for stringent regulations on credit card late fees and overdraft charges. While these efforts were intended to benefit consumers, they faced significant opposition from banking trade groups, which argued that the proposed rules were poorly designed.
Although banking stakeholders anticipated Chopra’s dismissal immediately after Trump’s inauguration, he remained in his position for nearly two weeks into Trump’s second term, during which he continued to address contentious issues, such as potential discriminatory practices by banks in account closures. Chopra’s tenure was originally set to last for an additional two years, but a 2020 Supreme Court ruling granted the president the authority to dismiss the CFPB head at will.
In his farewell letter, Chopra mentioned that he hoped the next leader of the CFPB would pursue “meaningful reforms,” potentially including imposing limits on credit card interest rates. The CFPB was established in response to the 2008 financial crisis, a disaster partly attributed to reckless lending practices by banks. However, the agency has been a target of criticism from trade groups and conservative advocates, including Elon Musk, who has called for its dissolution.
Following Bessent’s appointment, the Consumer Bankers Association expressed satisfaction, urging him to reverse the “partisan policies” implemented under Chopra. CBA President Lindsey Johnson noted the importance of considering the real-world impacts of regulations on major banks, their consumers, and the broader economy.
