Trump to nominate Kathy Kraninger to lead CFPB

  • Trump to nominate Kathy Kraninger to lead CFPB

Trump to nominate Kathy Kraninger to lead CFPB

President Donald Trump plans to nominate Kathy Kraninger to lead the Consumer Financial Protection Bureau, the White House announced Saturday.

"As a staunch supporter of free enterprise, she will continue the reforms of the Bureau initiated by Acting Director Mick Mulvaney, and ensure that consumers and markets are not harmed by fraudulent actors", Walters said.

Kraninger, who oversees the preparation of the budgets for several Cabinet departments, was selected over the objection of some officials inside the White House, who argued that her relative inexperience - and association with Mulvaney - could scuttle her nomination.

The CFPB was formed in the wake of the US financial crisis of 2007-08, authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The CFPB, a government watchdog agency charged with consumer protection in the financial sector, was created after the financial crisis with the passage of the 2010 Dodd-Frank Act.

Trump appointed Mulvaney, who also runs the OMB where he works closely with Kraninger, as temporary head of the CFPB in November to replace Richard Cordray, an appointee of former President Barack Obama.

Kraninger, a graduate of Marquette University and Georgetown Law School, specialized in homeland security matters before joining Mulvaney's staff at the Office and Management and Budget in March 2017. Cordray was praised by consumer advocates for going after banks for wrongdoing.

Since his appointment, Mulvaney has tried to weaken the bureau's enforcement and investigative activities, including its policing of payday lending, student lending and consumer finance.

She will succeed Acting Director Mick Mulvaney at the bureau.

One of the biggest challenges she would face is managing the agency's more than 1,600 employees, many of whom have grown increasingly anxious about keeping their jobs.

Kraninger's qualifications for the post have been challenged because she lacks experience in financial services and consumer issues. "But the big test will be how she performs in her Senate confirmation hearing".