Kraninger Nominated to Head CFPB

Under the law used to temporarily install Mick Mulvaney as head of the Consumer Financial Protection Bureau (CFPB), he would have been required to leave the job on June 22, 2018 - unless the president nominated someone to be his successor. 

Consumer advocates have been concerned that the current president would nominate someone even more unqualified for the position.  Qualified or not, any nomination would trigger a loophole in that law that would allow Mulvaney to stay until the nomination is confirmed or rejected by the Senate. 

On June 16, 2018, Trump nominated Kathy Kraninger, a White House aide with no background in financial regulation or consumer protection issues, triggering that loophole.

Mulvaney will now have continued control over an agency he has opposed from its conception. An agency that he has been hobbling and slowly dismantling since being given control over it in November 2017. 

Most recently,  Kraninger has been an associate director of the White House’s Office of Management and Budget - also headed by Mick Mulvaney. She helped put together the administrations proposed 2019 budget, which would cut 23% from the existing CFPB budget. During her confirmation hearings before the Senate Banking Committee in July 2018, she refused to answer questions about how those cuts would be applied.  

As part of her current job, she was also involved with the administration’s disastrous response to Hurricane Maria in September 2017, and with the administrations nightmarish policy of forcibly separating children from their parents at the border. Kraninger refused to answer questions about these issues, prompting Senator Elizabeth Warren (D-MA) to say:

“Either she wasn't involved in child separations or the failed Puerto Rico recovery, which means she doesn't have the management experience that she claims to have, or she was involved, which means the Senate would be voting to promote someone who was responsible for two of the worst humanitarian catastrophes in recent history.”

After multiple postponements throughout July and August, the Senate Banking Committee narrowly approved her nomination with a party line vote on August 23, 2018.

As of September 18, 2018, there is still no word when Kraninger’s nomination will go to the full Senate for a vote. (This makes three months “past expiration” for Mulvaney, and counting.)

(Doing a little bit of catch-up on CFPB news.)


For more information:

Trump picks a nominee for CFPB chief — which really lets Mick Mulvaney stay in charge longer (Los Angeles Times, 16 Jun 2018)

Trump CFPB nominee grilled by Senate Democrats (The Washington Post, 19 Jul 2018)

Trump Nominee for CFPB Admits In Hearing She Has No Background In Consumer Protection Or Financial Regulation (The Intercept, 19 Jul 2018)

Architect of Trump’s family separation crisis may soon lead Consumer Financial Protection Bureau (Think Progress, 20 Aug 2018)

Senate Banking Committee Approves CFPB Nominee Kathleen Kraninger (NPR, All Things Considered, 23 Aug 2018)

The Consumer Financial Protection Bureau

The CFPB Is Under Attack

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