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    Trump administration, Musk’s DOGE plan to fire nearly all CFPB staff and wind down agency, employees say

    The Consumer Financial Protection Bureau’s Trump-appointed leadership plans to fire nearly all its 1,700 employees while “winding down” the agency, according to testimony from employees.
    In a trove of statements released late Thursday, federal employees said that the mass layoff was discussed in meetings they attended this month with senior CFPB leaders and members of Elon Musk’s so-called Department of Government Efficiency.
    The filings were made in the case started by CFPB’s union that suspended acting CFPB Director Russell Vought’s moves to shutter the bureau.

    Elon Musk holds up a chainsaw onstage during the Conservative Political Action Conference (CPAC) in National Harbor, Maryland, U.S., February 20, 2025. 
    Nathan Howard | Reuters

    The Consumer Financial Protection Bureau’s Trump-appointed leadership plans to fire nearly all its 1,700 employees while “winding down” the agency, according to testimony from employees.
    In a trove of statements released late Thursday, federal employees said that the mass layoff was discussed in meetings they attended this month with senior CFPB leaders and members of Elon Musk’s so-called Department of Government Efficiency.

    “My team was directed to assist with terminating the vast majority of CFPB employees as quickly as possible,” said an employee identified as Alex Doe, a pseudonym used out of fear of retaliation.
    Doe said the plan from CFPB leaders and DOGE was to cut the bureau’s workforce in three phases. It would first eliminate probationary and term employees, then carry out a wave of about 1,200 layoffs, leaving a skeleton crew of a few hundred workers.
    “Finally, the Bureau would ‘reduce altogether’ within 60-90 days by terminating most of its remaining staff,” Doe said.
    The workers’ testimony comes at a crucial time for the CFPB, the agency created to protect consumers after the 2008 financial crisis caused by irresponsible lending. Since DOGE operatives first arrived at the CFPB this month, the bureau has shuttered its Washington headquarters, initiated the first round of layoffs and told those who remain to stop nearly all work.
    The department has also reversed course on several cases where it accused financial firms including Capital One of ripping off customers, dismissing at least four cases Thursday involving billions of dollars in alleged consumer harm.

    The filings containing the employee statements were made in the case started by a CFPB union, which led to a judge suspending acting Director Russell Vought’s moves to shutter the bureau. After the CFPB fired about 200 probationary and term employees, the agency’s actions were put on hold until a March 3 hearing.

    ‘Five men and a phone’

    The documents show an apparent disconnect between some of the external messaging from Vought and the behind-the-scenes activity at the bureau.
    In a motion filed Monday in the case, Vought pushed back against the idea that he planned to eliminate the CFPB.
    “The predicate to running a ‘more streamlined and efficient bureau’ is that there will continue to be a CFPB,” he wrote.
    But the Trump administration’s plan was to take the CFPB down to the barest minimum staffing required under law: Just five CFPB employees would remain, either in a stand-alone office or folded into another regulatory body, the workers testified.
    In meetings between Feb. 18 and Feb. 25, “staff were told by Senior Executives that the CFPB would be eliminated except for the five statutorily mandated positions,” said another current CFPB employee, this one identified as Drew Doe.
    “One Senior Executive said that CFPB will become a ‘room at Treasury, White House, or Federal Reserve with five men and a phone in it,'” Doe said.
    Another CFPB employee said that he or she attended a Feb. 13 meeting in which the bureau’s chief operating officer, Adam Martinez, stated that the agency was in “wind-down mode.”
    The CFPB employees said that, if directed to by the court, they would provide their names and titles under seal.

    DOGE role

    The bureau has long been a target of Republicans and financial institutions, who have called it a rogue agency that exceeded its legal authority in punishing companies. More recently, Musk has taken up the cause; he posted on his X platform, “RIP CFPB,” earlier this month just as his DOGE operatives began their work.
    In several instances in the testimony, senior CFPB staff appeared to defer to DOGE employees for critical matters.
    For instance, DOGE worker Jordan Wick “specifically stated” that Musk’s ad hoc group wanted a massive round of layoffs by Feb. 14.
    “The Bureau intended to comply and fire the vast majority of remaining employees on February 14th,” Alex Doe said. “The only reason it did not do so is because of this Court’s order.”
    In other instances, DOGE workers asked CFPB staff about how deeply they could cut operations while adhering to statutory requirements in areas like consumer response, per testimony from CFPB worker Matthew Pfaff.
    Despite gaining full access to CFPB systems and data on Feb. 7, the DOGE employees haven’t yet completed the cybersecurity and privacy training required by the agency, the employees testified.

    Legal requirements

    While Musk and Vought have openly advocated for the termination of the CFPB, only Congress can truly shutter the agency, which was created after lawmakers passed the 2010 Dodd-Frank Act.
    Vought’s moves appear to allow him to claim the CFPB still exists, while sidelining its role by drastically curtailing its ability to supervise companies and respond to complaints.
    CFPB employees question whether a handful of employees could credibly fulfill the dozens of statutory requirements of the agency, which include responding to millions of consumer complaints filed via web and phone lines, as well as maintaining advocacy offices for military veterans and senior citizens.
    On Thursday, Jonathan McKernan, President Donald Trump’s pick to take over at the CFPB for Vought, told lawmakers including Sen. Elizabeth Warren, the Massachusetts Democrat credited with spurring the agency’s creation, that he would “fully and faithfully” enforce laws related to the CFPB’s mission.
    McKernan added that if confirmed by the Senate, he would “rightsize” the CFPB, as well as “refocus it” and “make it accountable.”
    Noting that Vought, who is also head of the Office of Management and Budget, has canceled the lease on the agency’s headquarters, Sen. Jack Reed, D.-R.I., told McKernan that he was in a “very difficult position.”
    “You do not appear to have much presidential support or OMB support, and I have this sinking feeling that you’re departing Liverpool on the Titanic,” Reed said. “Good luck.”

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    Egg prices are threatening a classic holiday tradition: Easter dye kits

    The makers of Easter egg dye kits are bracing for the potential fallout if the egg shortage doesn’t begin to clear up before the April 20 holiday.
    For many companies that specialize in these activity sets, egg dye kits and related products make up a significant share of annual revenue.
    Some companies still expect to see solid business this Easter, bolstered by three extra weeks of selling and the draw of the tradition.

    Melkinimages | E+ | Getty Images

    The egg aisle is anything but cheaper by the dozen these days — and that’s becoming a big problem ahead of the Easter holiday.
    The makers of Easter egg dye kits are bracing for the potential fallout if the egg shortage doesn’t begin to clear up before the April 20 holiday. For many companies that specialize in these activity sets, egg dye kits and related products make up a significant share of annual revenue. Diminished sales could have a major impact on their bottom lines.

    “I think sales will be down,” said Ashley Phelps, founder and CEO of Color Kitchen, a plant-based baking decoration company. “That remains to be seen, but I think it probably will be.”
    Wholesale egg prices have eclipsed record levels, reaching a high of $8.58 per dozen amid a domestic bird flu outbreak, according to global commodity data firm Expana. More than 52 million egg-laying birds have died, leaving the national flock at just 280 million, a critically low level, said Ryan Hojnowski, a market reporter at Expana.
    He noted that rising prices have slowed consumer demand as retail egg prices average around $6 per dozen or higher. Additionally, many stores have implemented purchasing limits, restricting the number of cartons that customers can buy at one time.
    The combination of inflated price and limited availability could curtail sales of eggs for the Easter holiday, ultimately affecting the demand for egg dye kits.
    Natural Earth Paint, a company that manufactures natural art supplies and craft kits for kids, typically sells between 40,000 and 50,000 egg dye kits around the Easter holiday, according to founder Leah Fanning. So far this year, the company’s retail partners have ordered only 7,000 kits.

    “It’s definitely a huge drop,” Fanning said, noting that most buyers have cited the egg shortage for the smaller orders.
    Fanning told CNBC that the egg dye kits have been Natural Earth Paint’s bestselling product for 13 years and kept the company in business for its first eight years. Of the company’s more than 40 products, the egg dye kit remains its “absolute bestseller.”
    She noted that while the majority of Natural Earth Paint’s sales come from retail locations, online sales typically pick up around three weeks before Easter. That leaves the chance that direct-to-consumer sales could get a boost in mid-March.

    A sign in a supermarket in New York City asks customers to limit their purchase of eggs to one carton, Feb. 13, 2025. The avian flu epidemic in the U.S. has sharply reduced the supply and raised the prices of eggs.
    Anadolu | Getty Images

    Color Kitchen said its Easter items represent 20% of the company’s total stock of items and outpace sales of all other items, including its Christmas icing kits.
    Phelps noted that most retailers order these egg kits months ahead of the holiday to ensure they are in stock immediately after Valentine’s Day. She said retailers “took a little less product this year” given sensitivity to the inflationary environment.
    “The other concern is that, some of the grocery stories, if they don’t sell through, then we get charged back for product that goes discounted to try and move it out of the store,” Phelps said. “So, that’s where we’ll get hit if the stuff that’s already been shipped out to grocery stores does not sell. That could potentially be very bad.”
    Phelps said 75% of Color Kitchen sales are from the shelf. The remaining 25% is from direct-to-consumer sales on its website and on sites such as Amazon.

    Walking on eggshells

    There are some companies that still expect to see solid business this Easter. The holiday takes place in late April, giving companies three more weeks of sales compared with last year.
    Hey Buddy Hey Pal, a company that makes the Eggmazing Egg Decorator, a crafting tool that spins eggs so kids can use markers to color them, generates between 85% and 90% of its annual revenue from its Easter product. Last year, the company generated $14 million in sales, a 22% bump from the year prior.
    Curtis McGill, co-founder of Hey Buddy Hey Pal, said retailers have ordered fewer of its products this year. Still, the company said it expects another jump of 18% in annual revenue as it’s set to sell between 600,000 and 700,000 egg decorators this year.
    Even as egg prices boil over, some dye kit makers see egg decorating as an essential tradition that few families will opt to skip, even if they reduce the number of eggs they use.
    Paas, the leader in the egg dye kit space, expects that some families will decorate fewer eggs this year, but said many will still participate in the tradition.
    “It’s just such a sticky tradition,” said Joe Ens, CEO of Signature Brands, which owns the 140-year-old iconic Paas brand.
    The company recently completed a survey of 120 consumers and found that 94% of them still plan on decorating eggs this holiday.
    “And the reason for that, other than the tradition being so important to consumers, is if you really break down the cost of the tradition, it is arguably the most affordable family tradition during any holiday,” he said.
    Paas expects to sell more than 10 million kits this year, one of the company’s strongest sell-ins ever, he said.

    Arts and crafts store chain Michaels said it’s already seeing shoppers opt for egg-inspired products. The company told CNBC that 43% of its total Easter sales so far this year have been for plaster, plastic and craft eggs.
    Michaels said a particular craft egg kit designed to “mimic the traditional egg-decorating experience” is selling nearly three times faster than the company had anticipated.
    Similarly, Hey Buddy Hey Pal expects some families may opt to purchase wooden eggs instead of real ones. Though the alternatives are typically more expensive than real eggs, they’re an opportunity to keep the creations around long after the holiday is over.
    “A lot could happen between now and then, we can continue to see an outbreak of avian flu and some different egg farms that hadn’t been affected,” said McGill. “It could get worse before it gets better. That’s not the projections, but at this point … I’m just gonna hold my breath until we get to April the 20th.” More

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    State Street, Apollo team up to launch first of its kind private credit ETF

    Omar Marques | Lightrocket | Getty Images

    There’s a new ETF in town. SPDR SSGA Apollo IG Public & Private Credit ETF (PRIV) will trade Thursday at the NYSE. 
    This fund intends to invest at least 80% of its net assets in investment grade debt securities, including a combination of public credit and private credit. What’s surprising is that there is a significant component of private credit in the ETF wrapper. Because private credit is illiquid, it has been a problem getting this in an ETF wrapper, since ETFs need liquidity. 

    They are trying to solve this problem by having Apollo provide credit assets and they will purchase those investments back if need be. 
    ETFs have owned illiquid investments in the past (there are bank loan ETFs that have illiquid investments) so this is not the first time this issue has been addressed. But Wall Street is eager to provide access to private equity and credit to the masses, and ETFs are the obvious wrapper.
    Normally, ETFs are only allowed to own illiquid investments up to 15% of the fund, but the SEC says that in this case private credit can range between 10% and 35%, but can be above or below that.
    This filing has been controversial. One early concern was that if Apollo is the only firm providing the liquidity, it naturally raises questions about what type of pricing State Street will get. However, State Street apparently can source from other firms if it can get better prices.
    Another issue: Apollo is required to buy back the loans, but only up to a daily limit, and it’s not clear what happens after that. It’s not clear if the market makers would accept private credit instruments for redemption.

    Bottom line: This is a groundbreaking but very complicated ETF. It will be closely monitored for liquidity.
    Note: Anna Paglia, executive vice president, chief business officer for State Street Global Advisors, will be on ETF Edge Monday to explain how this ETF works. More

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    Senators grill Trump’s CFPB director pick: You are ‘on the Titanic, good luck’

    President Donald Trump’s pick to lead the Consumer Financial Protection Bureau on Thursday withstood grilling from Democrat Senators who asked him repeatedly to confirm that he would uphold his legal obligations to run the agency.
    Jonathan McKernan, a former Federal Deposit Insurance Corporation board member, told lawmakers he would “fully and faithfully” enforce laws related to the CFPB’s mission.
    Sen. Elizabeth Warren pressed McKernan on if he would uphold CFPB’s statutory requirements, including having a website and toll-free line for consumer complaints, as well as maintaining advocacy offices for military veterans and senior citizens.

    Jonathan McKernan, U.S. President Donald Trump’s nominee to be the director of the Consumer Financial Protection Bureau, sits on the day he testifies during a Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Capitol Hill in Washington, D.C., U.S., February 27, 2025. 
    Annabelle Gordon | Reuters

    President Donald Trump’s pick to lead the Consumer Financial Protection Bureau on Thursday withstood grilling from Democrat senators who repeatedly asked him to confirm that he would uphold his legal obligations to run the agency.
    Pressed by senators including Elizabeth Warren of Massachusetts, Jonathan McKernan, a former Federal Deposit Insurance Corporation board member, told lawmakers he would “fully and faithfully” enforce laws related to the CFPB’s mission.

    “My legal career started just as the 2008 financial crisis was beginning,” McKernan said. “Watching that crisis unfold left me with an enduring conviction that we must have a financial regulatory system that works for everyday Americans. Consumer protection is critical to that end.”
    Still, McKernan made it clear that he disagreed with how predecessor Rohit Chopra ran the agency. In opening remarks, he said that the CFPB “acted in a politicized manner,” exceeded its legal authority, hurt consumers by inadvertently raising prices and suffered from a “crisis of legitimacy.”
    “This must be corrected if the CFPB is to reliably do what it’s supposed to do: look out for the American consumer,” said McKernan, a former corporate banking lawyer and Senate aide.
    Since acting CFPB Director Russell Vought took over this month, the agency has shuttered its Washington headquarters, fired about 200 employees and told those who remain to stop nearly all work. Those moves, along with an allegation from a CFPB union that Vought intends to fire more than 95% of the agency’s staff, has spurred fears that the agency faces extinction.
    Earlier Thursday, the CFPB dismissed at least four enforcement lawsuits, including actions against Capital One and a Berkshire Hathaway unit.

    U.S. Sen. Elizabeth Warren (D-MA) speaks at a rally outside the Consumer Financial Protection Bureau (CFPB) on Feb. 10, 2025 in Washington, DC. 
    Anna Moneymaker | Getty Images

    Warren pressed McKernan on if he would uphold CFPB’s statutory requirements, including having a website and toll-free line for consumer complaints, as well as maintaining advocacy offices for military veterans and senior citizens.
    “Each of the offices I think you mentioned is mandated by statute,” McKernan said. “Yes, I’ll follow the law.”
    Rattling off a list of public comments and steps made by the Trump administration that indicate the bureau could be shuttered entirely, Warren questioned how effective McKernan could be.
    “It kind of feels like you’ve been lined up to be the No. 1 horse at the glue factory,” Warren said.
    For his part, McKernan said that if confirmed by the Senate, he would “right-size” the CFPB, as well as “refocus it” and “make it accountable.”
    Sen. Jack Reed, D.-R.I., followed up, adding that Vought has canceled the lease on the agency’s headquarters and dismissed cases against “predatory lenders.” Reed also mentioned reporting that both Trump and Vought, who is also head of the Office of Management and Budget, want to eliminate the bureau.
    “You’re going to be placed in a very difficult position,” Reed said. “You do not appear to have much presidential support or OMB support, and I have this sinking feeling that you’re departing Liverpool on the Titanic. Good luck.”
    McKernan didn’t verbally respond to Reed’s comment, only smiling ruefully while nodding slightly. More

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    Elon Musk says he’s sending Starlink tech to FAA while saying, without evidence, that air safety is ‘at risk’

    Elon Musk said he’s sending his Starlink satellite internet terminals to the Federal Aviation Administration while saying, without providing evidence, that current technology poses a risk to air travel safety.
    Executives at major airlines told CNBC Thursday that they do not see the FAA infrastructure as an immediate safety risk.
    The FAA said it has been considering Starlink for some sites since the prior administration.

    An American Airlines Airbus A319 airplane takes off past the air traffic control tower at Ronald Reagan Washington National Airport in Arlington, Virginia, January 11, 2023
    Saul Loeb | AFP | Getty Images

    Elon Musk said Thursday that he’s sending his Starlink satellite internet terminals to the Federal Aviation Administration while saying, without providing evidence, that current technology poses a risk to air travel safety.
    The billionaire and top advisor to President Donald Trump, who has been tasked with cutting costs throughout the federal government, posted the claims on his social media platform, X.

    Executives at major airlines told CNBC on Thursday that they do not see risks to air travel safety because of the FAA’s technology.
    The FAA, which regulates Musk’s company SpaceX, didn’t immediately comment but earlier this week said it has been testing Starlink technology in Atlantic City, New Jersey, and in Alaska. The White House referred a request for comment to the FAA.
    The FAA “has been considering the use of Starlink since the prior administration to increase reliability at remote sites, including in Alaska,” the agency said Monday. “This week, the FAA is testing one terminal at its facility in Atlantic City and two terminals at non-safety critical sites in Alaska.”
    The Washington Post reported on Wednesday that the FAA is close to canceling a contract with Verizon for new communication technology for air traffic control and giving it instead to Musk’s Starlink.
    Musk said Thursday on X: a “Verizon communication system to air traffic control is breaking down very rapidly.” Verizon said in a statement that “the FAA systems currently in place are run by L3Harris and not Verizon.” He later corrected himself and said that L3Harris is responsible for the “rapidly declining” system.

    L3Harris didn’t immediately return request for comment.
    Verizon said it is working on replacing older air traffic control technology.
    “Our Company is working on building the next generation system for the FAA which will support the Agency’s mission for safe and secure air travel,” Verizon said in its statement. “We are at the beginning of a multi-year contract to replace antiquated, legacy systems. Our teams have been working with the FAA’s technology teams and our solution stands ready to be deployed. We continue to partner with the FAA on achieving its modernization objectives.”
    Musk didn’t immediately respond to a request for comment.
    Some Democrat lawmakers have raised concerns about Musk’s role in the Trump administration while also potentially working to provide technology to one of his regulators.
    “While I support efforts to modernize our air traffic control system and improve aviation safety, this decision raises conflicts-of-interest concerns, given Elon Musk’s dual position as Chief Executive Officer of SpaceX and wide-ranging role in the Trump administration,” wrote Sen. Ed Markey, D-Mass., to Chris Rocheleau, acting head of the FAA, on Wednesday.
    Others have raised alarms after the Trump administration laid off hundreds of FAA employees, though they do not include air traffic controllers.
    “At a minimum, we need to know why this sudden reduction was necessary, what type of work these employees were doing, and what kind of analysis FAA conducted – if any – to ensure this would not adversely impact safety, increase flight delays or harm FAA operations,” Sen. Tammy Duckworth, D-Ill., wrote to Rocheleau on Feb. 19.

    Read more CNBC airline news

    The FAA has said it has retained staff “who perform safety critical functions. The FAA does not comment on ongoing certification work.”
    Airlines for years have pushed for air traffic modernization. Carriers have long complained about how older systems have not kept up with the industry’s needs, leading to flight delays that cost both passengers and carriers. Air travel demand hit records after the pandemic.
    “Carriers have made remarkable changes and significant investments in technologies, operations, product and people,” Airlines for America, which represents major U.S. carriers, said Thursday. “The government needs to do the same in an organized and timely way.”
    Musk’s comments on air safety failures, which didn’t include evidence, come after last month’s fatal collision between an American Airlines regional jet and an Army Black Hawk helicopter, killing all 67 people on board the two aircraft. It ended an unprecedented period of air travel safety in the U.S., marking the first fatal passenger airline crash in the country since 2009 and the deadliest since 2001.
    Last week, more than a dozen aviation industry groups and labor unions, urged lawmakers to approve “emergency funding” for air traffic control modernization and staffing.

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    Venu is done. Here’s how Fox, Disney and WBD plan to go it alone in sports streaming

    Fox, Disney and Warner Bros. Discovery disbanded their efforts to launch Venu, a joint sports streaming service.
    The media giants have been detailing to investors how they plan to pivot or fill the void of Venu.
    For Disney’s ESPN and WBD’s Max it’s a renewed focus on what’s already in the works for their streaming efforts. For Fox, it’ll be launch of a new streamer.

    An advertisement for Venu Sports, the sports streaming venture by Disney, Warner Bros. Discovery and Fox, hangs at the Fanatics Fest event in New York City on Aug. 16, 2024.
    Jessica Golden | CNBC

    With Venu done before it even got out of the starting blocks, Fox Corp., Disney and Warner Bros. Discovery have been mapping out how to go it alone in live sports streaming.
    Last month the media giants called off the launch of Venu — a planned direct-to-consumer streaming offering of the entirety of the three companies’ live sports — in the face of headwinds, including cost sensitivity and legal challenges.

    The joint venture originally planned to launch the platform ahead of the 2024 NFL season.
    However, when its debut got blocked by a U.S. judge, the companies went back to the drawing board, and despite appealing the decision, ultimately decided to move forward alone.
    Investors have been keen to hear about each company’s next steps as competition ramps up for streaming subscribers and the traditional TV bundle bleeds customers. While Disney’s ESPN already had a strong foothold in streaming live sports, Venu was a bigger piece of the future for Fox and WBD.
    In recent weeks, each company has been detailing their plans. Disney’s ESPN and WBD’s Max appear to be putting more weight behind their already announced or existing platforms. Meanwhile, Fox is taking the plunge into direct-to-consumer streaming.
    Disney will shift its focus to the direct-to-consumer ESPN streaming platform, a yet-to-be-named flagship app separate from its ESPN+, that was already in the works before Venu collapsed. ESPN’s flagship app is expected to launch in the fall, and CNBC recently reported that it will add some user generated content in an attempt to attract younger viewers.

    This week, WBD executives doubled down on their existing strategy behind streaming service, Max.
    On Wednesday the company announced it would include sports and news at no additional cost on the standard and premium tiers of Max. Initially, WBD planned to charge extra for sports. It’s unclear if the reversal was directly related to the end of Venu. Including live sports in the standard Max cost had been part of WBD’s larger strategy discussions for some time, according to a person familiar with the matter.

    Unbundling

    WBD CEO David Zaslav said during Thursday’s earnings call with investors that one of the key drivers behind Venu was the motivation to put a big library of sports together in one place. He seemed to lament the loss of a singular, sports-centric app, reiterating his belief that bundling content is the best value proposition for consumers and eliminates confusion in finding your favorite leagues or teams.
    “It’s not a good consumer experience and the value creation over the last 50 years almost always follows a better consumer experience,” said Zaslav on Thursday, noting WBD’s separate streaming bundle with Disney.
    Finding the best value in the bundle has long been Fox’s proposition when staying out of the streaming wars.
    Fox took the biggest swing since the dissolution of Venu with plans for its own streaming platform following years of sitting on the sidelines. The company plans to launch an app that offers both news and sports by the end of this year.
    The company announced Thursday that it hired Pete Distad, who was previously in charge of Venu, to run its direct-to-consumer streaming service.
    Earlier this week at an investor conference, Fox CFO Steve Tomsic said the impending launch of a streaming service shouldn’t be seen as a shift in strategy, noting that Fox isn’t “trying to chase the [streaming] dream that Netflix and Disney and Peacock and Paramount+ are all chasing. That is not our game.”
    Fox divested its entertainment assets — a key component to major streaming platforms — in the sale to Disney in 2019, removing Fox from that game, Tomsic said. He added that streaming “does nothing for the consumer” of news and sports, due to how much is sliced and diced on varying platforms.
    But rampant cord cutting pushed Fox to step into the streaming game.
    “The reality is, as we sit here today, there’s the better part of 50 million households in the U.S. that are now outside the bundle,” Tomsic said this week, adding Fox’s streamer won’t compete with the general entertainment players.

    Cost of sports

    Live sports have played a pivotal role for media companies as the content that attracts the biggest audiences. This has been true for both traditional TV viewership, as well as streaming platforms looking to grow their subscribers.
    In response, the cost of sports rights has ballooned, and media companies have recently become more methodical in what they choose to spend on.
    Last week, ESPN stepped away from its long-term relationship with MLB, in part because the price-per-game was getting hard to justify.
    And last year, WBD’s Turner Sports lost its rights to air NBA games starting with the 2025-2026 season, but it did pick up some new rights, including to certain college football games and the French Open.
    WBD’s Zaslav on Thursday’s earnings call with investors also noted that the company wouldn’t necessarily jump to pay for more sports rights.
    “There are sports rights that we can look at opportunistically and say we can make a real return on,” Zaslav said on Thursday’s call. “But you know, we don’t need any more sports anywhere in the world in order to support our business. We buy sports if we think it would enhance our business. And it’s going to get more difficult…[because of] some of those prices being paid.”
    During an investor conference in December, Fox’s Tomsic echoed a similar sentiment around sports rights.
    Tomsic said while sports are “foundational” to Fox, which notably has the NFL, college football and soccer, the company has “traded in and out” of it in recent years. He highlighted, as examples, that Fox has dropped the NFL’s Thursday Night Football, U.S. Golf and most recently WWE.
    When Fox thinks about what makes sense for its sports portfolio, Tomsic said the company looks at the size of the audience and the potential advertising revenue.
    “We take a pretty financially hard-nosed view about them, and so we’ll trade in and out of those sports as we see fit,” Tomsic said in December.
    Disclosure: Peacock is the streaming service of NBCUniversal, the parent company of CNBC. More

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    Consumer Financial Protection Bureau drops lawsuits against Capital One and Berkshire, Rocket Cos. units

    The Consumer Financial Protection Bureau’s new leadership on Thursday dismissed at least four enforcement lawsuits undertaken by the previous administration’s director.
    In legal filings, the CFPB issued a notice of voluntary dismissal for cases involving Capital One; Berkshire Hathaway-owned Vanderbilt Mortgage & Finance; a Rocket Cos. unit called Rocket Homes Real Estate; and a loan servicer named Pennsylvania Higher Education Assistance Agency.
    “The Plaintiff, the Consumer Financial Protection Bureau, dismisses with prejudice this action against all Defendants,” the agency said in a brief filing in the Capital One case. It used similar language in the other cases.

    Russell Vought, director of the Office of Management and Budget (OMB) nominee for US President Donald Trump, during a Senate Budget Committee confirmation hearing in Washington, DC, US, on Wednesday, Jan. 22, 2025. 
    Al Drago | Bloomberg | Getty Images

    The Consumer Financial Protection Bureau’s new leadership on Thursday dismissed at least four enforcement lawsuits undertaken by the previous administration’s director.
    In legal filings, the CFPB issued a notice of voluntary dismissal for cases involving Capital One; Berkshire Hathaway-owned Vanderbilt Mortgage & Finance; a Rocket Cos. unit called Rocket Homes Real Estate; and a loan servicer named Pennsylvania Higher Education Assistance Agency.

    “The Plaintiff, the Consumer Financial Protection Bureau, dismisses with prejudice this action against all Defendants,” the agency said in the Capital One case. It used similar language in the other cases.
    The moves are the latest sign of the abrupt shift at the agency since acting CFPB Director Russell Vought took over this month. In conjunction with Elon Musk’s Department of Government Efficiency, the CFPB has shuttered its Washington headquarters, fired about 200 employees and told those who remain to stop nearly all work.
    Under former Director Rohit Chopra, the CFPB accused Capital One of bilking customers out of more than $2 billion in interest; it said Vanderbilt ignored signs that customers couldn’t afford its mortgages; it accused Rocket of providing illegal kickbacks to real estate agents; and it said that loan servicer Pennsylvania Higher Education Assistance Agency improperly collected loans.
    A Capital One spokesman said the bank welcomed the dismissal of its case, which it “strongly disputed.”
    A spokesman for Rocket also lauded the news: “Rocket Homes has always connected buyers with top-performing agents based only on objective criteria like how well they helped homebuyers achieve their dream of homeownership. We are proud to put this matter behind us.”

    Shares of Capital One and Rocket climbed after the dismissals.

    Billions lost

    Current and former CFPB employees have told CNBC that legal cases with upcoming docket dates would likely be dismissed as the agency disavows most of what Chopra has done.
    That began late last week, when the agency dismissed its case against SoLo Funds, a fintech lender it had earlier accused of gouging customers.
    Eric Halperin, the CFPB’s former head of enforcement, said in a phone interview Thursday that the spate of CFPB dismissals was unprecedented in the bureau’s history.
    “Five cases have been dismissed so far by this administration, whereas in the entire history of the bureau, there’s only been one other case dismissed without relief for any consumers,” Halperin said.
    Since the recent cases were dismissed with prejudice, the CFPB has agreed to never bring these claims again, shutting off the possibility of clawing back funds for consumer relief, he added.
    “Just from the cases that were dismissed today, there’s billions of dollars in consumer harm that the CFPB will never be able to get back for consumers,” Halperin said.

    ‘Embarrass you’

    The Thursday filings began appearing at the same time that senators were grilling Jonathan McKernan, President Donald Trump’s pick to lead the CFPB on a permanent basis, during a nomination hearing.
    “Mr. McKernan, literally while you’ve been sitting here and you’ve been talking about the importance of following the law, we get the news that the CFPB is dropping lawsuits against companies that are cheating American families, or alleged to be cheating American families,” Sen. Elizabeth Warren, D-Mass., said.
    “It seems to me the timing of that announcement is designed to embarrass you,” Warren said.

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    Pending home sales drop to the lowest level on record in January

    Pending sales dropped 4.6% from December to the lowest level since the National Association of Realtors began tracking this metric in 2001.
    While weather may have been a factor, sales rose month to month in the Northeast.
    Home prices have been easing over the last few months in certain areas, with more sellers cutting prices, but nationally they are still higher than they were a year ago.

    “For Sale” and “Sale Pending” signs in the West Seattle neighborhood of Seattle, Washington, US, on Tuesday, June 18, 2024. The National Association of Realtors is scheduled to release existing homes sales figures on June 21. 
    David Ryder | Bloomberg | Getty Images

    High mortgage rates and elevated home prices combined to crush home sales in January.
    Pending sales, which are based on signed contracts for existing homes, dropped 4.6% from December to the lowest level since the National Association of Realtors began tracking this metric in 2001. Sales were down 5.2% from January 2024. These sales are an indicator of future closings.

    “It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months,” said Lawrence Yun, NAR’s chief economist. “However, it’s evident that elevated home prices and higher mortgage rates strained affordability.”
    While weather may have been a factor, sales rose month to month in the Northeast and fell in the West, which would have seen the smallest impact of cold temperatures. Sales fell hardest in the South, which has been the most active region for home sales in recent years.
    Mortgage rates were also higher in January. The average rate on the popular 30-year fixed loan spent the first half of December below 7% but then began rising. It was solidly above 7% for all of January, according to Mortgage News Daily.
    Home prices have been easing over the last few months in certain areas, with more sellers cutting prices, but nationally they are still higher than they were a year ago.
    This drop in sales also came despite the fact that the inventory of homes for sales in January, including houses that were under contract but not yet sold, increased by 17% compared with last year, growing on an annual basis for the 14th month in a row, according to Realtor.com.
    “More for-sale inventory has the potential to generate more contract signings, but climbing home supply is not evenly distributed across the U.S.,” noted Hannah Jones, an economist with Realtor.com. “Moreover, many areas with high demand see relatively low for-sale inventory, which limits progress towards more home sales.”

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