Trump taps Kathy Kraninger to head Consumer Financial Protection Bureau

  • Trump taps Kathy Kraninger to head Consumer Financial Protection Bureau

Trump taps Kathy Kraninger to head Consumer Financial Protection Bureau

Kathy Kraninger, an official from the White House Office of Management and Budget, is President Donald Trump's leading candidate for permanent director of the Consumer Financial Protection Bureau (CFPB), Bloomberg reported on Friday, citing sources.

If approved by the Senate, Kathy Kraninger would succeed her boss, White House Budget Director Mick Mulvaney, who's led the consumer watchdog part-time since November.

What's likely to be a hard confirmation process could take months, and Mulvaney has said he expects to be at the bureau until the end of the year.

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.

Kraninger would inherit an agency that has been roiled by a shift to Republican leadership under Mulvaney from its roots as a scourge of financial firms under Richard Cordray, a Democrat who was appointed by President Barack Obama and is running for governor of Ohio. Cordray was praised by consumer advocates for going after banks for wrongdoing.

Trump taps Kathy Kraninger to head Consumer Financial Protection Bureau

"Whether you agree with Mulvaney politically, there is no doubt he has been a highly effective manager in government and since he's worked closely with her he must know she is qualified", said Dina Ellis Rochkind, a lawyer at Paul Hastings and former Congressional staffer who worked for Republican lawmakers. The suit says the lender illegally charges people up to 950 percent interest rates.

She surmounted a key hurdle last week when a member of the National Economic Council staff, Andrew Olmem, signed off on her nomination, people close to the situation said.

Earlier this month, Mulvaney fired the bureau's consumer advisory council, which also drew criticism. Prior to her post at the OMB, Kraninger worked for the Department of Homeland Security and the Senate Appropriations Committee.

As acting director, Mulvaney has conducted a top-to-bottom review of the agency's enforcement, supervisory and rule-making functions.

The White House says Kraninger would plan to continue reforms enacted by Mulvaney at CFPB.