NEW YORK (AP) — In a party-line vote, the Senate approved President Donald Trump’s nominee to run the Consumer Financial Protection Bureau on Thursday, ending a six-month, highly partisan battle over the fate of the…
NEW YORK (AP) — In a party-line vote, the Senate approved President Donald Trump’s nominee to run the Consumer Financial Protection Bureau on Thursday, ending a six-month, highly partisan battle over the fate of the powerful consumer watchdog agency.
The vote was 50-49 in favor of approving Kathy Kraninger, who worked as a mid-level official in the White House’s budget office, to a five-year term. Kraninger has zero experience in financial services and had never run a federal agency before, a criticism that made Democrats hostile to her nomination since day one.
The CFPB was created as part of the Dodd-Frank Act, the law that rewrote the financial rules and regulations governing banks following the 2008 financial crisis. The CFPB was designed to be a highly independent agency tasked with going after wrongdoing by banks, credit card companies and other financial services companies. The bureau has returned billions of dollars to consumers through its work.
But since its creation, the CFPB has been a target of Congressional Republicans who see the bureau as an example of government gone amok, and have vowed repeatedly to abolish the agency. One of those Congressmen was Mick Mulvaney, who when he was a representative from South Carolina described the bureau as a “sick, sad” joke. Mulvaney is now the acting director of bureau.
Kraninger now inherits a bureau that is very different from the one that was run by Richard Cordray, who was director of the bureau under President Barack Obama. Cordray resigned in late 2017, seven months earlier than expected, to run for Governor of Ohio. Cordray successfully claimed the Democratic nomination for governor, but lost in the general election to Republican Mike DeWine.
In the year he has had the position, Mulvaney proposed cutting back many of the rules and regulations that were put into place under Cordray, and the bureau has scaled back its enforcement efforts. Mulvaney’s changes at the bureau have led to the departure of many high-level staff members in recent months, including the deputy director Leandra English and Seth Frotman, who was the bureau’s top official overseeing student loan issues.
Kraninger, who worked under Mulvaney in the White House’s budget office, is expected to run the bureau in a similar industry-friendly way as Mulvaney.