On June 16, 2018, the White House announced that President Trump intends to nominate Kathy Kraninger, an associate director of the Office of Management and Budget (“OMB”), to be the next director of the Consumer Financial Protection Bureau (“CFPB”). Kraninger would replace her boss at OMB, Mick Mulvaney, who has served as acting director of the CFPB since November. Mulvaney’s term as acting director ends on June 21, but he is permitted to continue to lead the bureau until a successor is confirmed under federal personnel rules. If a permanent director had not been nominated, Mulvaney would have been required to leave his post this month.
A tough confirmation battle is expected in the Senate and it is anticipated that the Kraninger’s confirmation hearing could last several months, including the possibility that her confirmation would not occur until 2019. Some industry groups, such as the American Bankers Association, have lauded the nomination as a positive development, and it is expected that Kraninger, philosophically, would continue to scale back regulatory and enforcement efforts by the CFPB. Opponents of Kraninger’s nomination cite her lack of experience in in consumer financial protection matters, and Senator Elizabeth Warren (D-MA) has asked whether Kraninger played a role in the Trump Administration’s policy to separate children from their parents coming across the U.S.-Mexico border in her current role overseeing budget requests for the Department of Homeland Security and the Department of Justice.
If Kraninger is ultimately confirmed, she will lead the CFPB for a five year term.
Brian is a partner at PIB Law and focuses his practice on the representation and counseling of financial services clients in litigation, investigations, compliance and regulatory matters, including banking and consumer ...