Agency had accused banking giant of cheating consumers out of more than $2bn in interest payments on savings accounts

The US Consumer Financial Protection Bureau on Thursday dropped a legal action against Capital One, which the agency had accused last month of cheating consumers out of more than $2bn in interest payments on savings accounts.

The dismissal continues Donald Trump’s rapid moves to dismantle the agency, which he has said should be eliminated, but comes the same day as his nominee to head the CFPB, Jonathan McKernan, testified before the Senate in a confirmation hearing.