Credit reporting agency Equifax in September revealed that a data breach had left the information of 145 million customers exposed. The company waited weeks before disclosing the incident to the public, during which time three executives sold nearly $2 million worth of the company’s shares.

Not even six months later, the Consumer Financial Protection Bureau, under interim director Mick Mulvaney, is scaling back an investigation into what happened, according to a new report. It’s the latest example of how the CFPB, which was created under the Obama administration to look out for consumers in the financial products and services space, is stepping back from that under Trump.

Reuters reported on Monday that Mulvaney, who President Donald Trump in November tapped to temporarily head the CFPB after Director Richard Cordray stepped down, has pulled back from a full-scale probe into how Equifax failed to protect customer data. Sources told the publication that Mulvaney has not ordered subpoenas against Equifax or sought sworn testimony from executives, which it would be expected to do in a full-scale probe. It has put a pause on plans for tests of Equifax’s data protection practices and turned down offers from other federal regulators for help in on-site credit bureau exams.

To be sure, the CFPB is not permitted to acknowledge an open investigation, but one was reportedly opened under Cordray. “The bureau has the desire, expertise, and know-how in-house to vigorously pursue hypothetical matters such as these,” agency spokesman John Czwartacki told Reuters.

Read More...