Washington
Washington Weekly: CFPB’s Future and the Impact of CDFI Cuts on Credit Unions | PYMNTS.com
By the standards set previously in Q1, this Monday wasn’t as manic as most. In fact there’s an element of “business as usual” in this installment of the Washington Weekly as CFPB workers were called back to work. But the general atmosphere of business uncertainty continues to hang over the nation’s capital as well as the companies following the Trump administration’s continuing navigation of trade finance and domestic financial regulations.
The top story for Karen Webster and QED Investors partner Amias Gerety was the continuing drama around the Consumer Financial Protection Bureau (CFPB). As The New York Times (NYT) reported Saturday (March 15), last week, the watchdog’s consumer response team was summoned back to the office to deal with a backlog of 16,000 complaints. In addition, the report said, the CFPB’s Fair Lending Office is back to preparing its annual report to Congress. And the front page of the agency’s website, which showed a “404 error” message beginning on the day Trump officials arrived at the bureau, is functioning once more.
The question now: What’s next for the CFPB? Gerety, a former assistant secretary of the treasury under Obama, believes the developments of the past week are good for the American consumer and a sign that the administration is taking its responsibilities to keep the agency operating seriously. While there’s a “wait and see” element to Gerety’s view of the CFPB, Webster noted that there’s a lot more hanging in the balance for the agency than just dealing with consumer complaints.
Gerety emphasized ambiguity remains about broader rulemaking and enforcement until a new director is confirmed by the Senate. The incoming leadership could swiftly alter or delay previously enacted regulations, given the Supreme Court’s directive that the agency follow rigorous rulemaking procedures. Gerety offered pragmatic advice to FinTech companies navigating this ambiguity, stressing the importance of maintaining robust compliance standards despite potential regulatory shifts.
“Even as the compliance obligations may be lessened, that actually puts more pressure on you to be operating in good faith relative to your consumers,” Gerety said. “We’re telling people it’s a little bit easier on compliance, but harder on risk.” Until the CFPB’s direction becomes clear, Gerety advises caution, noting, “You can’t follow the policy prescriptions. You have to follow the rules, because that’s the part that has legal force.”
He noted that the confirmation of CFPB director nominee Jonathan McKernan, expected imminently, is likely to be a smooth process and could rapidly clarify the agency’s path forward. “I expect his confirmation to go smoothly,” Gerety said. “He said the right things about following the law,” emphasizing that swift confirmation would help stabilize the agency and resolve uncertainty around pending regulations.
Big Hit to Credit Unions
While the CFPB may have a reprieve, the same cannot be said about the Community Development Financial Institutions (CDFI) Fund. It was the target of a new executive order from President Trump last week. Established in 1994 as a bipartisan Treasury Department initiative, the fund promotes economic opportunity in underserved communities by supporting mission-driven financial institutions that provide capital and services to individuals and businesses often overlooked by traditional banks. Prior to the recent executive order, the Fund had awarded over $5.1 billion through various monetary award programs and $66 billion in tax credits through its New Markets Tax Credit Program, helping finance over 109,000 businesses and 45,000 affordable housing units in fiscal year 2024. On Friday (March 14), the president signed an executive order directing the CDFI Fund to be “eliminated to the maximum extent consistent with applicable law” and to “reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law,” deeming it “unnecessary” alongside six other federal agencies, despite bipartisan congressional support for the program.
As Webster and Gerety discussed, the EO has implications beyond the federal grant program. It has substantial implications for credit unions across the United States. As of January 2025, 495 certified CDFI credit unions serve millions of members in economically distressed areas, and these institutions now face considerable uncertainty regarding funding streams and operational support, according to the fund’s website.
Gerety expressed concern about the recent executive order targeting the CDFI Fund, emphasizing its crucial role in aiding credit unions and community-focused financial institutions nationwide. He explained that nearly 10% of U.S. credit unions hold CDFI certification, leveraging the fund’s grants, subsidies, and affordable housing loans to effectively serve low-income and minority communities.
Gerety described the CDFI Fund as a straightforward, transparent mechanism whose impacts are easily measured, stressing, “It’s super transparent. It’s really easy to track the impact. And we’ve seen the impact now over 30 years transform communities.” He detailed how the fund consistently distributes loans and grants directly to community-oriented financial institutions, driving tangible outcomes. In 2024 alone, CDFI-backed institutions provided funding to 109,000 small businesses and supported the development of approximately 45,000 affordable housing units through $24 billion in community-focused loans and investments, according to Gerety.
The Uncertain Vibe
So it was a Monday in D.C. to be sure. Has it changed the general vibe in Washington? For consumers? Has it changed the general vibe for fintechs and banks? Let’s take the last issue first. Maybe the actions in Washington haven’t directly impacted FinTechs this week. But Klarna’s IPO filing last Friday (March 14) has had a positive effect, Gerety said. (Full disclosure: Gerety’s company, QED Investors was an early stage investor in Klarna but is no longer actively involved.)
“This is great news for FinTech,” he told Webster. “And I think the other thing that’s really interesting with Klarna is they have shifted the mindset in Europe for their customers. Not just to be a way for people to pay, but also a way for people to discover. And I think that that change in consumer behavior is a real testament to the team there. It’s interesting timing given the market term turmoil, but strong businesses that want to be public can survive turmoil in the market.”
And regarding the general vibe in Washington this week? Still uncertain, according to Gerety.
“Maybe you’re in a business where you manufacture with steel. Well, are the tariffs on or off? When are they coming? Should you build a plant here or somewhere else? You don’t know,” he said. “And when you put all that together the right thing to do is just to pause. And unfortunately for the economy, a pause is deadly.”
Washington
Caps Fall in Montreal, 6-2 | Washington Capitals
Cole Caufield scored in the first minute of the first period and added another goal later in the frame, sparking the Montreal Canadiens to a 6-2 win over the Capitals on Saturday night at Bell Centre.
Washington entered the game with a modest three-game winning streak and six wins in its last seven games. Although they were able to briefly draw even with the Habs after Caufield’s opening salvo, Caufield and the Canadiens responded quickly and the Caps found themselves chasing the game for the remainder of the night.
“I didn’t mind some of the things that we did tonight,” says Caps coach Spencer Carbery. “I thought we created enough offensively, we just made way too many catastrophic mistakes to be able to sustain that.”
In the first minute of the game, Caufield blocked a Jakob Chychrun point shot, tore off on the resulting breakaway and beat Charlie Lindgren for a 1-0 lead for the Canadiens, half a minute into the contest. Lindgren was making his first start since Jan. 29, following a short stint on injured reserve for a lower body injury he sustained in that game.
After the two teams traded unsuccessful power plays, the Caps pulled even in the back half of the first. With traffic in front, Declan Chisholm let a shot fly from the left point. The puck hit Anthony Beauvillier and bounded right to Alex Ovechkin, who had an easy tap-in for career goal No. 920 at 13:16 of the first.
But Montreal came right back to regain the lead 63 seconds later, scoring a goal similar to the one Ovechkin just scored.
From the left point, Canadiens defenseman Jayden Struble put a shot toward the net. It came to Nick Suzuki on the goal line, and the Habs captain pushed it cross crease for Caufield to tap it home from the opposite post at 14:19.
Less than two minutes later, Lindgren made a dazzling glove save to thwart Caufield’s hat trick bid.
Midway through the middle period, Montreal went on the power play again. Although the Caps were able to kill the penalty, the Habs added to their lead seconds after the kill was completed; Mike Matheson skated down a gaping lane in the middle of the ice and beat Lindgren from the slot to make it a 3-1 game at 12:22.
Minutes later, Montreal netminder Jakub Dobes made a big stop on Aliaksei Protas from the right circle, and Suzuki grabbed the puck and took off in the opposite direction. From down low on the right side, he fed Kirby Dach in the slot, and Dach’s one-timer made it 4-1 for the Canadiens at 16:34 of the second.
In the waning seconds of the second, Dobes made one of his best stops of the night on Beauvillier, enabling the Canadiens to carry a three-goal lead into the third.
Those two quick goals in the back half of the second took some wind out of the Caps, who were playing their third game in four nights following the three-week Olympic break.
“We kill off a penalty, and then we end up going down 3-1right after the penalty,” says Caps center Nic Dowd. “Those are challenging to give up, right? You do a good job [on the kill], it’s a 2-1 game, and then all of a sudden, before you blink, it’s 4-1 and then the game gets away from you.
“And they defended well tonight; It’s tough to score goals in this League, and you go into the third period, and you’ve got to score three. You saw that [Friday] night when we played Vegas; they were able to score two, but it’s tough to get that third one. I think we have to manage situations a little bit better. It’s a 2-1 game on a back-to-back, we just kill a penalty off, or maybe we just have a power play – whatever it is – we have to manage that, especially in an arena like this, where the crowd gets into it on nothing plays. They can really sway momentum – and in a good way – for their home team.
“We just have to understand that if we don’t have our legs in certain situations, because of travel, it’s back-to-back or whatever, we really have to key into the details of the game and not let things get away from us quickly.
With 7:28 left in the third, Ovechkin netted his second of the game – and the fifth goal he has scored in this building this season – on a nice feed from Dylan Strome to pull the Caps within two goals of the Habs, who have coughed up some late leads this season.
But Montreal salted the game away with a pair of late empty-net goals from Suzuki and Jake Evans, respectively.
In winning six of their previous seven games, the Caps had been playing with a lead most of the time. But playing from behind virtually all night against a good team in a tough building is a tall task under any circumstances. And it was exactly that for the Caps on this night.
“They score on the first shift,” says Strome. “Obviously, Saturday night in Montreal is as good and as loud as it gets. They just got a fortunate bounce; puck was off Caulfield’s leg, and a perfect bounce for a breakaway. It’s just one of those things where we got down early and now they kind of fed off the momentum of the crowd.
“But I still think our game is in a good spot, and we’ve just got to keep stacking wins. Obviously, we’ve played more games than everyone so we’re going to need some help, but we’ve just got to keep stacking wins. It’s tough on the back-to-back in Montreal, but we’ll find a way to bounce back on Tuesday [vs. Utah at home] and then go from there.”
Washington
The Fallout From the Epstein Files
The Department of Justice is facing scrutiny this week after it was revealed that records involving President Trump were missing from the public release of the Epstein files. On Washington Week With The Atlantic, panelists joined to discuss the ensuing political fallout for the Trump administration, and more.
“The key thing to remember about the Epstein story is that it is a case that has been mishandled for decades. The reason that we’re hearing about this now and why it’s exploding into public view is because, for the first time, Republicans in Congress and Democrats in Congress were willing to openly defy their leadership and call for the release of these files,” Sarah Fitzpatrick, a staff writer at The Atlantic, said last night. “That has never been done before, and I think it really is changing the political landscape in ways that we’re still just starting to learn.”
“What’s been so striking is how many of those very same Republicans who were calling for the release of those files, who had promised to get to the bottom of them, are now saying things that are just the opposite,” Stephen Hayes, the editor of The Dispatch, argued.
Joining guest moderator Vivian Salama, a staff writer at The Atlantic, to discuss this and more: Andrew Desiderio, a senior congressional reporter at Punchbowl News; Fitzpatrick; Hayes; and Tarini Parti, a White House reporter at The Wall Street Journal.
Watch the full episode here.
Washington
Man charged with shooting co-worker in Washington Heights
A 26-year-old man had an argument with a co-worker before allegedly fatally shooting the colleague in Washington Heights, prosecutors said Friday.
Bobby Martin, who was charged with first-degree murder Thursday, made his first appearance Friday in Cook County court.
Martin, is accused of killing his co-worker, Antoine Alexander, 32, in a parking lot at 9411 S Ashland Ave about 3:30 p.m. on Tuesday, according to Chicago police.
Prosecutors said Martin and Alexander worked together at an armed security company and got into a verbal altercation inside the guard shack on Tuesday afternoon. During the altercation, prosecutors said Alexander removed his bullet proof vest and threw it to the ground. A witness, another co-worker, then told the defendant and the victim to take the altercation outside.
After stepping outside, the defendant pulled his firearm and fired one shot into the victims abdomen, prosecutors said. The victim’s firearm was holstered at the time of the argument and the shooting. The defendant fled the scene and came into contact with another co-worker, whom he told that he had just shot Alexander.
Alexander was then taken to Advocate Christ Medical Center in Oak Lawn, where he was pronounced dead.
Martin was arrested by authorities three blocks from his home approximately 20 minutes after the shooting, prosecutors said.
Martin was detained and will appear in court again on March 17, authorities said.
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