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The CFPB drops its lawsuit against Capital One, marking a major reversal
Jonathan McKernan, nominee for Director of the Consumer Financial Protection Bureau, testifies before the Senate Banking Committee on Thursday in Washington, D.C.
Kayla Bartkowski/Getty Images/Getty Images North America
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Kayla Bartkowski/Getty Images/Getty Images North America
The Consumer Financial Protection Bureau on Thursday dropped five major legal cases it had underway — including a big lawsuit against Capital One — marking a major reversal for an agency that had pursued aggressive action against financial institutions accused of wrongdoing during the Biden administration.
Just last month, the CFPB had accused Capital One of failing to pay more than $2 billion in interest to customers by misleading them into thinking they would be getting higher rates. Capital One denied the charges.
The bureau also dropped its cases against Rocket Homes, Pennsylvania Higher Education Assistance Agency, Vanderbilt Mortgage and Finance, and Heights Finance Holding Company.
News of the court filings dismissing the CFPB’s legal cases came just as the Senate Banking Committee was grilling President Trump’s nominee to lead the agency, Jonathan McKernan.
The CFPB has faced intense turmoil in recent weeks, with over a hundred workers fired and the agency virtually shuttered after staff were told to stop all work. Employees were locked out of the bureau’s D.C. headquarters and the building’s lease was canceled.
People protest in support of the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., earlier this month.
Jacquelyn Martin/AP/AP
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Jacquelyn Martin/AP/AP
During his Senate testimony, McKernan said the agency had overreached under the Biden administration,
“We’ve got to refocus it on its mission,” said McKernan, who was previously on the board of the FDIC. “We need to right-size it, make sure that we have an efficient CFPB and we need to reinstate some accountability to our elected officials.”
Sen Elizabeth Warren (D-Mass.), who played a major role in the bureau’s founding after the 2008 financial crisis, said during the hearing that she did not believe that the timing of the court filings were coincidental, though she offered no evidence.
“It seems to me the timing of that announcement is designed to embarrass you and to show exactly who is in charge of this agency right now: Elon Musk and his little band of hackers,” she told McKernan.
Sen. Tina Smith (D-Minn.) said that she had asked McKernan about the pending litigation the day before and had been “assured” that he would “review these lawsuits.”
“This makes me question like who’s really going to be in charge of the CFPB if this is what’s happening while your nomination is being considered?,” she said.
“My question is, who’s going to be in charge here?” Smith asked McKernan.
“Senator, if I’m confirmed, I’m the director,” he replied.
‘CFPB RIP’
The CFPB is currently led by acting director Russell Vought, the White House budget director and one of the architects of the conservative plan Project 2025.
The Trump administration has made clear its contempt for the bureau, and that it wants to either eliminate CFPB or drastically pare back its work. Musk has tweeted “CFPB RIP.”
Consumer groups decried the end of the litigation.
“Voters in the last election expressed their dismay with high prices, yet the Administration is stopping the essential work to stop corporate abuses that take billions from people every year,” said Lauren Saunders, associate director of the National Consumer Law Center. “The cases dismissed today actually underscore why the CFPB’s work is so essential to investigate practices that are draining hard-earned money from the pockets of everyday people.”
Before joining the FDIC’s Board of Directors, McKernan held staff roles in the Senate, the Treasury, the Federal Housing Finance Agency, and spent a brief stint detailed to CFPB. He previously spent nine years as a lawyer focused on banking and consumer financial laws, according to his prepared testimony. Several business groups have endorsed McKernan’s nomination.
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Explosion at Lumber Mill in Searsmont, Maine, Draws Large Emergency Response
An explosion and fire drew a large emergency response on Friday to a lumber mill in the Midcoast region of Maine, officials said.
The State Police and fire marshal’s investigators responded to Robbins Lumber in Searsmont, about 72 miles northeast of Portland, said Shannon Moss, a spokeswoman for the Maine Department of Public Safety.
Mike Larrivee, the director of the Waldo County Regional Communications Center, said the number of victims was unknown, cautioning that “the information we’re getting from the scene is very vague.”
“We’ve sent every resource in the county to that area, plus surrounding counties,” he said.
Footage from the scene shared by WABI-TV showed flames burning through the roof of a large structure as heavy, dark smoke billowed skyward.
The Associated Press reported that at least five people were injured, and that county officials were considering the incident a “mass casualty event.”
Catherine Robbins-Halsted, an owner and vice president at Robbins Lumber, told reporters at the scene that all of the company’s employees had been accounted for.
Gov. Janet T. Mills of Maine said on social media that she had been briefed on the situation and urged people to avoid the area.
“I ask Maine people to join me in keeping all those affected in their thoughts,” she said.
Representative Jared Golden, Democrat of Maine, said on social media that he was aware of the fire and explosion.
“As my team and I seek out more information, I am praying for the safety and well-being of first responders and everyone else on-site,” he said.
This is a developing story. Check back for updates.
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Woman killed in Atlanta Beltline stabbing identified
Crime scene tape surrounds a bicycle in front of St. Lukes Episcopal Church in Atlanta on May 14, 2026. (SKYFOX 5)
ATLANTA – The woman stabbed to death on the Beltline has been identified as 23-year-old Alyssa Paige, according to the Fulton County Medical Examiner.
The backstory:
Paige was killed by a 21-year-old man Thursday afternoon while she was on the Beltline. Officials confirmed to FOX 5 that the stabbing happened near the 1700 block of Flagler Avenue NE.
Atlanta Police Chief Darin Schierbaum said the department was alerted around 12:10 p.m. that a woman had been stabbed just north of the Montgomery Ferry Drive overpass. She was rushed to Grady Memorial Hospital where she later died. Another person was also stabbed during the incident, but their condition remains unknown.
According to officers, the man responsible attacked a U.S. Postal worker prior to the stabbing before getting away on a bike. He then used that bike to flee the scene of the stabbing as well.
The suspect was arrested near St. Luke’s Episcopal Church on Peachtree Street in Midtown around 5:25 p.m.
What we don’t know:
While officials haven’t released an official motive, they noted the man may have been suffering a mental health crisis.
The Source: Information in this article came from the Fulton County Medical Examiner’s Office and previous FOX 5 reporting.
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Man Charged With Posting Bomb Instructions Used in New Orleans Attack
Federal prosecutors have filed charges against a former Army serviceman they accused of distributing instructions on how to build explosives that were used by a man who conducted a deadly attack in New Orleans on New Year’s Day last year.
The former serviceman, Jordan A. Derrick, a 40-year-old from Missouri, was charged with one count of engaging in the business of manufacturing explosive materials without a license; one count of unlawful possession of an unregistered destructive device; and one count of distributing information relating to manufacturing explosives, according to a criminal complaint unsealed on Wednesday. The three charges together carry a maximum sentence of 40 years in federal prison.
Starting in September 2023, the authorities said, Mr. Derrick was using various social media sites to share videos of himself making explosive materials, including detonators. His videos provided step-by-step instructions, and he often engaged with viewers in comments, sometimes answering their questions about the chemistry behind the explosives.
The authorities said that Mr. Derrick’s videos were downloaded by Shamsud-Din Bahar Jabbar, 42, who was accused of ramming a pickup truck into a crowd on Bourbon Street in New Orleans on Jan. 1, 2025, in a terrorist attack that killed 14 people and injured dozens. Mr. Jabbar was killed in a shootout with the police. Before the attack, Mr. Jabbar had placed two explosives on Bourbon Street, the authorities said, but they did not detonate.
The authorities later recovered two laptops and a USB drive in a house that Mr. Jabbar had rented. The USB drive contained several videos created by Mr. Derrick that provided instructions on making explosives. The authorities said the explosives they recovered were consistent with the ones Mr. Derrick had posted about.
Mr. Derrick’s lawyers did not respond to requests for comment.
Mr. Derrick was a combat engineer in the Army, where he provided personnel and vehicle support, the authorities said. He also helped supervise safety personnel during demolitions and various operations. He was honorably discharged in February 2013.
The authorities did not say whether Mr. Derrick had any communication with Mr. Jabbar, or whether the men had known each other. In some of Mr. Derrick’s videos and comments, he indicated that he was aware that his videos could be misused.
“There are a plethora of uh, moral, you know, entanglements with topics, any topic of teaching explosives, right?” he asked in one video, according to the affidavit. “Of course, the wrong people could get it.”
The authorities also said that an explosion occurred at a private residence in Odessa, Mo., on May 4, and the occupant of the residence told investigators that he had manufactured explosives after watching online tutorials from Mr. Derrick.
Mr. Derrick’s YouTube account had more than 15,000 subscribers and 20 published videos, the affidavit said. He had also posted content on other platforms, including Odysee and Patreon. Some videos were accessible to the public for free, while others required a paid subscription to view.
“My responsibility to my countrymen is to make sure that I serve the function of the Second Amendment to strengthen it,” Mr. Derrick said in one of his videos, according to the affidavit. “This is how I serve my country for real.”
Outside of the income he received through content creation, Mr. Derrick did not have any known employment. He did receive a monthly disability check from Veterans Affairs, the affidavit stated.
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