Kraninger Nomination Clears Senate Committee, Advances to Full Senate for Consideration

Earlier today, the Senate Committee on Banking, Housing, and Urban Affairs met in executive session to consider a slate of nominations, including that of Kathy Kraninger, President Trump’s nominee to head the Consumer Financial Protection Bureau.

In his opening statement, Committee Chairman Mike Crapo (R-Idaho), heralded Kraninger’s “leadership experience at federal agencies and on Capitol Hill, with particular experience in the budget and appropriations processes.”

“At her hearing, Ms. Kraninger reiterated her dedication to fulfilling the Bureau’s congressional mandate, ensuring all consumers have access to markets for consumer financial products and services that are fair, transparent, and competitive,” Crapo said. “Given her depth and diversity of public service experience, I have the utmost confidence that she is well prepared to lead the Bureau in enforcing federal consumer financial laws, protecting consumers’ sensitive personal financial information, expanding access to credit, and making the Bureau more transparent and accountable.”

Crapo also noted that despite debate on the need for the administration to produce documents related to some of the nominees, he would not require such production by the Trump administration or any other administration. He also noted that the CFPB has been a controversial agency since its inception as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Other Senators speaking in support of Ms. Kraninger included Senator Mike Rounds (R-S.D.), who noted her experience in the White House and in previous jobs before encouraging others on the panel to avoid voting against her simply because they oppose the Trump Administration’s policies.

Democrats on the Committee, who have opposed Kraninger throughout the nomination process, continued to question Kraninger’s lack of relevant experience in finance or consumer protection as well as her role in President Trump’s family separation policy while she oversaw the Department of Homeland Security at the Office of Management and Budget.

Sherrod Brown (D-Ohio), the Banking Committee’s Ranking Member, said in his remarks that of the six nominees being considered, three had been forthcoming with the committee and two had been forthcoming but had shown a history of questionable behavior. Kraninger, he contended, was in “a class by herself.”

“Unlike the other five nominees, she has no relevant experience in finance or consumer protection, and has refused to answer questions about her record or intentions,” he continued. “What she has told us is that she won’t be an independent advocate for American consumers – the entire job she is supposed to do.”

Senator Brown’s wide-ranging remarks also blasted recent actions by the CFPB under Acting Director Mick Mulvaney, including news from last week that the Bureau would no longer protect military servicemembers and their families via the Military Lending Act. He also blasted her role in preparing a budget that “would triple the rent on struggling families that receive HUD assistance,” in her role in the government’s failed response to Hurricanes Irma and Maria in Puerto Rico, and her role in the policy of separating children from their families at the border.

Other members of the Committee, including Senator Jack Reed (D-R.I.), stated they would oppose her nomination due to concerns about her willingness to protect military service members from predatory lenders. Senator Elizabeth Warren (D-Mass.) said she opposed the nomination because of her handling of the Puerto Rico response and her role in the Trump administration’s child separation policy, as well as her lack of banking industry experience. Senator Jon Tester (D-Mont.) briefly expressed opposition and his support for the CFPB, and Senator Catherine Cortez Masto (D-Nev.) expressed her opposition while noting that as Nevada’s Attorney General, she had worked closely with the CFPB, giving her a unique insight.

Of the six nominations considered, most passed by voice vote. During the roll call vote on Ms. Kraninger’s nomination, the vote fell along party lines, with all 13 Republicans on the panel voting to advance the nomination and all 12 Democrats voting against it.

Kraninger now must be considered by the full Senate before she can be sworn in and take over for Acting Director Mick Mulvaney, who has served in the role since November of last year.