This past weekend, the White House announced that President Donald Trump plans to nominate Office of Management and Budget (OMB) Associate Director Kathy Kraninger to be the next director of the Consumer Financial Protection Bureau (CFPB or Bureau).
If confirmed, Kraninger will replace CFPB Acting Director Mick Mulvaney. Kraninger, who currently works under Mulvaney at the OMB, is expected to continue Mulvaney’s drive to make the CFPB more business friendly. Kraninger’s qualifications for the leadership position have been challenged because she lacks experience in financial services and consumer issues. Prior to her post at the OMB, Kraninger worked for the Department of Homeland Security and the Senate Appropriations Committee. She also earned her law degree from Georgetown University Law Center. Some press reports indicate that the White House settled on her because they determined that problems with the CFPB were mainly due to management issues.
According to the statement from White House spokeswoman Lindsay Walters: “[Kraninger] will bring a fresh perspective and much-needed management experience to the BCFP, which has been plagued by excessive spending, dysfunctional operations, and politicized agendas. 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. The White House hopes that she will be promptly confirmed by the Senate.”
Mulvaney can continue serving as acting director while Kraninger goes through the Senate confirmation process, which many expect will likely take months and be very contentious.