Trump’s CFPB Nominee to Get July Senate Banking Panel Hearing

By Evan Weinberger

Kathy Kraninger, President Donald Trump’s nominee to serve as director of the Consumer Financial Protection Bureau, will be vetted by senators next month in the next step in her contentious confirmation process, the Senate Banking Committee announced June 28.

Kraninger, currently a program associate at the Office of Management and Budget, will appear before the committee for a confirmation hearing on July 19. Democrats on the committee are expected to press her on her limited experience in consumer financial services; her ties to the current acting director, OMB Director Mick Mulvaney; and her role in the Trump administration’s zero-tolerance immigration policies.

Experience Questions

Trump nominated Kraninger, who oversees budgets for the Department of Homeland Security and the Justice Department and previously served in DHS, to be the permanent replacement for former CFPB Director Richard Cordray on June 19.

Democrats and consumer groups immediately attacked Kraninger as being unqualified for the position given her previous experience in government that did not include any real financial regulatory work. Those groups also questioned Kraninger’s independence from Mulvaney, who has dramatically scaled back the CFPB’s enforcement and regulatory efforts while rebranding the bureau.

Family Separation

Kraninger’s nomination faces a challenge outside of those concerns over her experience and independence.

Sen. Elizabeth Warren (D-Mass.), the CFPB’s intellectual architect, put a hold on Kraninger’s nomination June 19, demanding to know her role in the Trump administration’s zero-tolerance immigration policy.

“I will put a hold on her nomination — & fight it at every step — until she turns over all documents about her role in this,” Warren said in a June 19 tweet.

Trump signed an executive order on June 20 formally ending the family separation policy, although the methods for reuniting those families has yet to be announced. A federal judge in California on June 26 ordered the Trump administration to reunite the families within 30 days.

Republicans and the financial services industry have praised Kraninger for her managerial skills, something they say is needed at the CFPB.

Other Hearings

Also set for confirmation hearings next month are Elad L. Roisman, Trump’s nominee to fill the seat of departing Securities and Exchange Commissioner Michael Piwowar, and Michael R. Bright to lead the Government National Mortgage Association, or Ginnie Mae.

Those hearings are set for July 24.

To contact the reporter on this story: Evan Weinberger in New York at eweinberger@bloomberglaw.com

To contact the editor responsible for this story: Michael Ferullo at mferullo@bloomberglaw.com

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