I’m changing the CFPB, not ‘gutting’ it

The accusation that I am “gutting” the Consumer Financial Protection Bureau (CFPB) is not new. It fits a certain narrative — pushed by people who cannot accept the fact that Donald Trump is president. There is a problem with the claim, however: It is just flatly wrong.

Yes, I mean to change the bureau. This shouldn’t surprise anyone. That’s exactly what happens to every agency when a new administration appoints new leadership. And we’re looking for a lighter regulatory hand: bringing common sense and balance to government regulation is a central tenet of this administration.

Toward that end, I changed the internal structure of our fair lending enforcement and supervision functions. I did that in order to have only one office, not two, that handles enforcement, and only one, not two, that handles supervision.

I also decided to reconsider rules on payday lending. Going unreported: State regulators told the bureau years ago that such rules were unnecessary, as many states had already regulated those businesses.

And in a move that is unprecedented in Washington, I asked for zero dollars to fund our operations. I did that because the bureau had an unnecessary $177 million “reserve fund.” Put another way: We didn’t need the money.

The CFPB is one of the most — if not the most — powerful federal agencies in existence. It is also the least transparent or accountable. As director, I have almost total control over regulations and access to virtually unlimited funds. In some cases I am even judge, jury and executioner. I do not answer to Congress, to the people I regulate, or even to you.

If I am going to run a government agency like that, I am going to do it with humility toward those we serve, prudence in the exercise of our authority and respect for the law. I hope we never see a time when that equates to “gutting.”