Trump's CFPB Director Mick Mulvaney Shuts Down Equifax Investigation, Exposing Regulatory Capture

Trump-appointed Acting CFPB Director Mick Mulvaney effectively shuts down the Consumer Financial Protection Bureau’s investigation into the Equifax data breach that exposed 147 million Americans to identity theft. After former Director Richard Cordray authorized a full-scale investigation in September 2017, Mulvaney—who took over in November 2017—neither orders subpoenas against Equifax nor seeks sworn testimony from executives. The CFPB shelves plans for on-the-ground tests of Equifax’s data protection systems and rebuffs offers from the Federal Reserve, FDIC, and OCC when they volunteer to help with on-site examinations of credit bureaus.

The investigation shutdown represents textbook regulatory capture and corruption. Mulvaney had received thousands of dollars in campaign contributions from Equifax during his time in Congress and previously co-sponsored legislation to completely eliminate the CFPB. As Acting Director, he systematically dismantled the bureau’s enforcement capabilities, telling banking industry executives ‘if you’re a lobbyist who never gave us money, I didn’t talk to you. If you’re a lobbyist who gave us money, I might talk to you.’ The Equifax investigation abandonment exemplifies this pay-to-play approach. Despite Equifax’s catastrophic negligence exposing half the U.S. adult population to identity theft, the company faces no meaningful federal enforcement action under Mulvaney’s leadership. Senators from both parties demand answers about the stalled investigation, with letters noting the CFPB’s complete failure to pursue basic investigative steps. The case demonstrates how political appointees can neutralize consumer protection agencies to serve corporate interests.