CFPB director nomination hearing: Live coverage

Published July 22, 2026 2:20 PM

Updated July 23, 2026 2:25 PM

2 Min Read

Key insight: Johnson is widely expected to curb enforcement and reduce regulations, following in the footsteps of his predecessor, acting CFPB Director Russell Vought.
What's at stake: Johnson is likely to fast-track rule changes, including gutting loan officer compensation limits, unwinding diversity-related lending rules and defunding consumer education programs.
Forward look: The CFPB is expected to align with bank interests, including moving toward "tailored rulemaking" and potentially granting banks more control over open banking data fees.

The Senate Banking Committee Thursday will hold a confirmation hearing for Brian Johnson to serve as permanent head of the Consumer Financial Protection Bureau, where he served as deputy director during Trump's first term.

As deputy director, Johnson spearheaded efforts to curb enforcement and loosen regulations. He is widely expected to maintain a functionally weakened CFPB, a favorable prospect for financial institutions.

Johnson signed an ethics pledge last week in which he agreed to recuse himself for the next two years from any matters involving Capital One Financial, where he has worked as a vice president of U.S. card compliance. The ethics pledge also states that Johnson won't "participate in matters affecting his financial interests or those of his family without a written waiver or regulatory exemption."

Johnson has advocated for the CFPB to operate strictly within its statutory limits and is expected to continue the massive pullback in enforcement of hundreds of top banks. Johnson has stated publicly that the CFPB is "ripe for reform," and also that the bureau is capable of "great good" if it is properly structured and managed.

Even before his expected confirmation, Johnson's pending arrival has had an immediate impact.

A federal court recently granted a stay in litigation regarding a proposed reduction-in-force specifically to allow Johnson, if confirmed, the opportunity to decide whether to proceed with, modify, or abandon a plan to cut hundreds of staff positions. The CFPB's acting Director Russell Vought has sought to slash the bureau's staff by two-thirds. Vought is required by law to relinquish his role on Aug. 1.

Since President Trump took office in January 2025, the administration has effectively neutralized the agency, slashed nearly all actions taken under the Biden administration and moved its headquarters. The CFPB is still locked in a contentious legal battle with its union over job cuts. In addition, the CFPB has delayed a controversial order, until after Johnson's confirmation process is complete, that requires roughly 450 regional employees to relocate to Washington, D.C., or face dismissal.

The CFPB's staff has already been radically cut under the Trump administration due to attrition. The bureau currently has 1,071 employees, down from 1,750 in early 2025.

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10h 53m ago

Johnson claims 'open mind' on CFPB staffing levels

By Kate Berry

Sen. Ruben Gallego, D-Ariz.

Bloomberg News

Several senators, including Sen. Rubén Gallego, D-Ariz., asked CFPB Director-designate Brian Johnson whether he agreed that the CFPB is required by law to maintain specific offices, and if he planned to properly staff an Office of Older Americans and an Office of Servicemember Affairs.

"These offices serve millions of people, and obviously can't be staffed by a small handful of staffers," Gallego said.

Johnson replied that the "offices were created by the Dodd-Frank Act, and the staffing levels are subject to ongoing litigation."

Gallego responded that Dodd-Frank requires an office dedicated to older Americans to protect them from financial abuse, fraud and retirement scams.

"Do you agree that an office can't really do its job properly if it's done by a skeleton crew?" Gallego asked.

To which Johnson replied: "Senator, I had laid out as one of my priorities, which is to protect Americans from fraud and scam, and that includes older Americans who may be uniquely vulnerable to those scams."

"How can you do that if these offices are going to be gutted and are not going to have the proper amount of staffing to do that?" Gallego asked.

Johnson replied: "I have an open mind about staffing levels for offices, and my understanding of the state of litigation is that I'll have the opportunity to make those judgments."

11h 15m ago

Johnson: 'Not my intention' to close CFPB

By Kate Berry

Sen. Chris Van Hollen, D-Md.

Bloomberg News

Consumer Financial Protection Bureau Director-designate Brian Johnson said he does not intend to close the CFPB under his watch and thinks the agency is capable of providing a positive impact on the marketplace and consumer.

Sen. Chris Van Hollen, D-Md., asked Johnson if he "would like to eliminate the CFPB," to which Johnson replied: "That's not my intention. The CFPB is a creature of statute."

Johnson also said that he has testified in the past that "the CFPB is capable of great good. However, I think there are deficiencies in the current legislative structure, and I have advocated in the past for changes to the CFPB's authority and structure to ensure that it's better able to execute its mission."

Under questioning by Sen. Rafael Warnock, D-Ga., Johnson refused to say whether he agreed with eliminating the CFPB.

Warnock said: "Do you agree with eliminating it? Yes or no. Do you think it should be eliminated?"

Johnson refused to answer the question and instead responded: "If confirmed, I'll enforce the law, which includes Title X of Dodd Frank."

Johnson, who worked with Vought as a staffer for former House Financial Services Committee Chair Jeb Hensarling, R-Texas, said he would make his own decisions. He also refused to identify any decision made by Vought that he disagreed with.

11h 23m ago

Warren presses Johnson over 'corruption' in Trump CFPB

By Kate Berry

Al Drago/Bloomberg

In her opening questions, committee ranking member Elizabeth Warren, D-Mass., noted that In January 2023, the CFPB sued Capital One — Johnson's current employer — for allegedly cheating savings account customers out of more than $2 billion in interest payments.

However, roughly a month after President Trump took office and following a $1 million donation from Capital One to his inauguration, Vought, the acting director, dropped the investigation.

The CFPB has dropped 42 cases including several that were major donors to President Trump including Capital One, Apple, Bank of America, JPMorganChase, Toyota, Walmart, and Meta. Warren alleged a pay-to-play pattern.

"They donate, and they get actions from the CFPB against them dropped," Warren said.

She called for reform to "clean this corruption up," and pressed Johnson on whether he would commit to fully cooperating with Congress and the inspector general.

"You're the guy in the seat who can do this," Warren said. "Will you agree to notify us if you get a call about a political donor from the Trump family who is under investigation?"

Johnson replied: "With respect, I dispute the premise of the question."

Warren responded: "Your answer indicates you're just going to keep that machine humming."

She also followed up by asking if Johnson planned to cut CFPB examiners from 350 to just 77. He replied that the staffing plan is subject to litigation and refused to outline more specific plans about further staffing cuts at the CFPB.

11h 49m ago

Scott praises Johnson's restraint; Warren calls pick a 'mistake'

By Kate Berry

Brian Johnson, President Trump's pick to lead the Consumer Financial Protection Bureau, in the Senate Banking Committee on July 23.

Senate Committee on Banking, Housing and Urban Affairs

Senate Banking Committee Chair Tim Scott, R-S.C., kicked off the confirmation hearing by saying that CFPB Director-designate Brian Johnson will be responsible for protecting consumers while "keeping the bureau focused on its mission and within the law."

"Families and businesses deserve clear rules, fair treatment, and access to affordable financial products," Scott said.

Sen. Shelley Moore Capito, R-W.Va., kicked off Johnson's nomination by describing him as "diligent and thoughtful," and said he will stick to the CFPB's "original charter and not go beyond that."

After graduating from the University of Virginia Law School, Johnson began working for the House Financial Services Committee in 2012. Moore, who chaired a subcommittee at the time, said she worked closely with Johnson "to advance common sense legislation that addressed the regulatory burdens facing our community and our community financial institution, and ensure greater accountability within our financial regulatory agencies."

Warren, who first conceived of the CFPB in the wake of the 2008 financial crisis, said that under the Trump administration, acting CFPB Director Russell Vought "tried to kill the CFPB," and dropped a $2 billion-dollar enforcement action against Capital One. She said it would be "a mistake to move forward with [Johnson's] nomination."

She cited testimony last week by Vought as the reason not to support Johnson's nomination.

"The most damning thing about Mr. Johnson's nomination is that he has gotten a rousing stamp of approval from the outgoing director Russ Vought, who spent a year and a half trying to kill the agency, and who now says Mr. Johnson will 'do a great job running the CFPB,' running it into the ground," Warren said.

In his opening statement, Johnson said he would help President Trump "advance his pro-growth agenda." If confirmed, Johnson said he has three priorities: protecting consumers, especially those who are vulnerable to fraud and scams; promoting accountability by ensuring the CFPB "acts prudently and within its statutory limits;" and modernizing the CFPB's operations.

12h 12m ago

Committee approves Phelen, Crews on partisan lines

By John Heltman

Bloomberg News

After coming out of an executive session that lasted nearly an hour, the Senate Banking Committee voted to approve Christopher Phelan as the new chair of the White House Council of Economic Advisers and John Crews to serve as chair of the National Credit Union Administration by a vote of 13-11.

The nominations will now go to the full Senate for a vote, likely after the Senate returns from its August recess.

The committee tacked an executive session to vote on Phelan and Crews' nominations onto an already-scheduled confirmation hearing late Wednesday, prompting the committee to go into an extended closed session.

Phelan, an economist at the University of Minnesota, hewed closely to the president's vision during his confirmation hearing last month. He had expressed questions in the past about the efficacy of fractional reserve banking, a cornerstone of modern finance, calling the practice "problematic."

12h 59m ago

Confirmation hearing goes to closed session ahead of vote

By Kate Berry

Senate Banking Committee ranking member Elizabeth Warren, D-Mass.

Bloomberg News

As Thursday's confirmation hearing was just beginning to get under way, Senate Banking Committee ranking member Elizabeth Warren, D-Mass., moved to go into a closed session. Sen. Tim Scott, the chairman of the Senate Banking Committee, agreed and the hearing room was cleared.

Last night, both senators were briefed by the Federal Bureau of Investigation about the nominees, Warren said.

"We have both been briefed on the FBI background investigations for the nominees that we are scheduled to vote on this morning, and I appreciate you're always talking these issues through," Warren said. "I'm not going to get into the details, given the limitations and the rules on what can be discussed in a public session, but the briefing left me with some significant questions that have not yet been answered."

Warren proposed postponing the nomination hearing "until we have confidence that the FBI has run down all the answers."

"All of our colleagues on this committee, Democrats and Republicans, have a right to be fully up to speed, fully informed on these issues before being asked to vote for or against nominees," Warren said.

Thursday's hearing included an executive session to vote on the nominations of John Crews to serve as chair of the National Credit Union Administration and Christopher Phelan to serve as chair of the White House Council of Economic Advisers. Following that executive session, the committee was to hold an open session to consider Brian Johnson, a former Capital One Financial executive and former deputy director of the Consumer Financial Protection Bureau, as director of the agency. The panel is also slated to consider Abby Warren to serve as assistant Secretary of Commerce and Irving Dennis to serve as chief financial officer of the Department of Housing and Urban Development.

It was not immediately clear which of the nominees Warren was referring to when she related her concerns raised from the FBI briefing.

In his opening statement, Scott praised Crews and Phelan for their dedication to public service.

"President Trump was elected to bring down costs, restore accountability and put common sense back at the center of government," Scott said. "To do that, he needs qualified leaders in place."

1d ago

Johnson expected to rescind loan officer compensation rule

By Kate Berry

House Financial Services Committee

Consumer Financial Protection Bureau Director-designate Brian Johnson is expected to accelerate pending Consumer Financial Protection Bureau proposals, including a proposed rule issued last year that would rescind loan originator compensation requirements under the Truth in Lending Act.

The loan officer compensation rule is a set of regulations designed to prevent mortgage brokers and loan officers from steering consumers into high-cost loans for personal gain.

Critically, a CFPB under Johnson would likely align with Trump's executive order aimed at reducing regulations. If confirmed, Johnson also will inherit a significant regulatory agenda that includes issuing an interim open banking rule.

Though the CFPB finalized an open banking rule under the Biden administration, the agency was immediately sued by the Bank Policy Institute. The trade group has said the CFPB exceeded its authority and thinks banks such as JPMorganChase should be allowed to charge fees for access to consumer financial data rights. The CFPB sided with industry, leading to a stay in the litigation while a new rulemaking moves forward. Revisions to the open banking rule, known as 1033 for its section in the Dodd Frank Act, may include more robust standards for how to secure data and which parties bear liability for unauthorized access or data breaches.

Johnson has a slew of other major rulemakings on his plate. Under Vought, the CFPB has proposed nearly a dozen rules or amendments that Johnson would potentially get across the finish line.

One of the more contentious rules finalized under Vought amends the Equal Credit Opportunity Act to remove any reference to so-called "disparate impact," a test used to uncover instances of unintended discrimination. The changes to ECOA also modified how the federal government views ways in which consumers are discouraged from applying for credit. It also narrowed the eligibility requirements for special purpose credit programs. Johnson is expected to continue the Trump administration's efforts to dismantle so-called diversity, equity and inclusion programs.

He also is expected to revisit credit card late fees, and in another potential rule change, remove any reference in the rule that established the CFPB's Civil Penalty Fund, which reimburses consumers, but will no longer allocate funds for consumer education and financial literacy programs.

The bureau has primary oversight responsibility over banks with $10 billion in assets, encompassing more than 250 large banks. Vought, who testified last week for the first time as the bureau's acting director, said he expects the CFPB to conduct 70 supervisory exams this year of large banks.

The bureau under Johnson also may explore ways to reduce regulations on large banks by raising the supervisory threshold to $21 billion in assets or more, Vought told lawmakers.

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