New CFPB head faces challenge

Fresh controversy has hit the Consumer Financial Protection Bureau (CFPB) over the nomination of the candidate to be the new permanent head of the federal agency.

With acting director Mick Mulvaney now ending his tenure, the White House has announced it intends to appoint Kathy Kraninger as director.

The move has provoked considerable comment, in part because of Kraninger’s perceived lack of experience in consumer regulation or financial services.

She has previously worked with the Department of Homeland Security, before joining Mulvaney’s staff at the Office of Management and Budget in March 2017.

Lisa Gilbert, vice-president of legislative affairs, Public Citizen, said in a statement: “With the choice of Kathy Kraninger, it is crystal clear that Mick Mulvaney wants to continue to pull the strings at the CFPB. In little more than six months of his improper leadership at the agency, Mulvaney has shut down enforcement, rolled back rules and demoralized staff – all to benefit big banks and predatory lenders. If Kraninger is confirmed, we should expect more of the same.,”

Democratic US senator Elizabeth Warren, who was instrumental in setting up the CFPB initially, is seeking to block the appointment. Her opposition is related, in part, to the current crisis over the immigration policy of forcibly separating children from parents who attempt illegal entry to the US via the Mexico border.

Warren tweeted: “Kathy Kraninger has no track record of helping consumers. That’s bad news for seniors, servicemembers, students – and anyone else who doesn’t want to get cheated. And it gets even worse. Kathy Kraninger helps oversee the agencies that are ripping kids from their parents. I will put a hold on her nomination – and fight it at every step – until she turns over all documents about her role in this.”

Mulvaney stated his strong support for Kraninger, saying: “I have never worked with a more qualified individual than Kathy. Her commitment to the law, to protecting consumers and to defending what works in our vibrant financial services sector, all while respecting hard-working taxpayers who pay their bills and play by the rules ensures that the Bureau will be in good hands throughout her term. Vigorous independence, sharp-as-a-tack intelligence, and simple, old-fashioned, Midwestern humility makes her the ultimate public servant.

“I know that my efforts to rein in the bureaucracy at the Bureau of Consumer Financial Protection to make it more accountable, effective, and efficient will be continued under her able stewardship.”