The Consumer Financial Protection Bureau (CFPB) saw a shake-up on Tuesday as three senior leaders were placed on administrative leave. Chief Legal Officer Mark Paoletta confirmed the action against Supervision Director Lorelei Salas, Enforcement Chief Eric Halperin, and Deputy Director Zixta Martinez. This follows a directive from acting OMB Director Russ Vought instructing CFPB employees to cease work activities without prior written approval. Prior to Vought, Treasury Secretary Scott Bessent briefly held the acting director position and issued a similar order.

The agency confirmed that Halperin resigned after being notified of his leave, reportedly responding to the email notification within minutes. The New York Post initially reported Halperin's swift resignation. Salas also reportedly reacted to her leave notification with an agency-wide email but stopped short of officially resigning. A CFPB spokesperson suggested that both Halperin and Salas claimed resignation to maintain appearances. A spokesperson representing Salas and Halperin, however, countered that the Trump administration is attempting to marginalize government employees who resist their agenda.

A view of the Consumer Financial Protection Bureau (CFPB) headquarters building in Washington, DC.

The headquarters of the Consumer Financial Protection Bureau (CFPB).

Past connections between Halperin and Salas with George Soros' Open Society Foundation have also come to light. A 2021 CFPB press release indicates Halperin's prior role as a senior advisor to the organization, and Salas' participation in a government fellowship program sponsored by the foundation.

Elon Musk, head of the Department of Government Efficiency.

These developments coincide with an ongoing investigation of federal agencies by the Department of Government Efficiency, headed by Elon Musk. Musk's recent social media post hinting at the CFPB's potential demise fueled speculation and triggered protests outside the agency's headquarters, with prominent figures like Senator Elizabeth Warren voicing opposition to the investigation.

Senator Elizabeth Warren participating in protests outside the CFPB headquarters.

The CFPB, established in 2010 in response to the 2008 financial crisis, is tasked with safeguarding consumers from predatory financial practices. The current investigation by the Department of Government Efficiency aims to identify and address government overspending, fraud, and corruption.