Some of Congress’ top Democrats are urging top financial regulators to protect sensitive data in the wake of turmoil caused by the Trump administration’s shake-up of a major banking watchdog.
In a letter sent Wednesday, Rep. Maxine Waters (D-CA) and Sen. Elizabeth Warren (D-MA) pressed Federal Reserve Chair Jerome Powell and the heads of the Federal Deposit Insurance Corp. (FDIC), the Office of the Comptroller of the Currency, and the National Credit Union Administration to safeguard confidential financial information. The letter, first reported by The Wall Street Journal, argues that Elon Musk’s Department of Government Efficiency (DOGE) improperly accessed internal systems at the Consumer Financial Protection Bureau (CFPB) and the Treasury Department, in violation of constitutional and federal laws.
According to the lawmakers, DOGE gained access to databases containing personally identifiable information of “nearly all” Americans, along with confidential supervisory records of financial institutions. Warren and Waters warned regulators against complying with any similar requests from DOGE, calling such actions unconstitutional and unlawful.
The White House defended DOGE’s work, with a spokesperson stating, “Slashing waste, fraud, and abuse, and becoming better stewards of the American taxpayer’s hard-earned dollars might be a crime to Democrats, but it’s not a crime in a court of law.”
The Trump administration has been exploring sweeping changes to the financial regulatory system, including consolidating oversight of banks under the Treasury Department. The CFPB, in particular, has been a focus of upheaval, with acting director Russell Vought closing the agency’s office, halting investigations, suspending supervisory activities, and placing key division leaders on administrative leave—moves that prompted resignations.
Vought also took steps to dismiss CFPB employees still within their probationary period, though it remains unclear how many were affected. Meanwhile, President Trump has nominated Jonathan McKernan, formerly of the FDIC, to replace Vought as CFPB director, pending Senate confirmation.
The lawmakers also expressed concern that DOGE accessed sensitive business data that could personally benefit Musk, who has previously outlined plans to introduce payment services on his social media platform, X. Musk has defended DOGE’s actions, calling them part of an effort to implement “common-sense controls” over Treasury payment systems and dismissing concerns about potential conflicts of interest.
The dispute has already led to legal challenges. On Saturday, the union representing CFPB employees filed lawsuits, arguing that Vought’s actions violated constitutional separation of powers principles and privacy laws protecting employee data. Over the weekend, a federal judge also issued a temporary order restricting DOGE’s access to the Treasury payment system.
