BCFP Nominee Kathy Kraninger Hailed by Acting Director Mulvaney for Washington Experience


6/19/2018 8:00 AM

Elizabeth Warren vows to place a hold on Kraninger’s nomination until the OMB official answers questions about immigration.

DailyCFPB

Almost immediately following news that President Trump intended to nominate Kathy Kraninger to serve as director of the Bureau of Consumer Financial Protection, the criticism, praise and questions started.

Initially, comments about her limited financial services industry experience surfaced as some individuals consider her a choice out of left field. The Los Angeles Times published an article Monday stating that Kraninger is “a little-known White House aide with no apparent relevant experience in finance, banking regulation or consumer protection.”

The White House clearly disagrees, as noted by Lindsey Walters, the spokesperson who informed the media Saturday that President Trump intended to nominate the Office of Management and Budget official. Walters said 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," according to media reports.

On Monday the White House published an announcement on the intent to nominate Kraninger, of Ohio, to serve a five-year term. In her current position as associate director for general government at the OMB, Kraninger oversees $250 billion in budgetary resources for seven cabinet departments and 30 other federal agencies, including the Department of the Treasury, Department of Housing and Urban Development, and the BCFP. 

According to the White House, Kraninger started her career in public service as a Peace Corps volunteer. After the 9/11 attacks, she joined the newly created Department of Homeland Security, and was promoted to deputy assistant secretary for policy. Kraninger also worked in Congress, from 2011 to 2013 on the House Committee on Appropriations, and from 2013 to 2017 on the Senate Committee on Appropriations. She received a B.A. in political science and education, Phi Beta Kappa, from Marquette University, and a J.D. from Georgetown University.

As Washington begins to digest Trump’s selection, additional comments are being published, including congratulatory remarks from some leaders on Capitol Hill.  U.S. Rep. Blaine Luetkemeyer, R-Mo, released the following statement:  “I congratulate Kathy Kraninger on her nomination to serve as the next Bureau of Consumer Financial Protection Director. Under Acting Director Mulvaney’s leadership, the BCFP has taken steps to not just talk the talk, but to walk the walk, and to ensure consumer protection without assaulting financial independence. I look forward to working alongside Ms. Kraninger as she continues to lead the Bureau in this direction.”

Still, others were not so friendly. U.S. Senator Elizabeth Warren, D-Mass., posted the following Tweet: “Kathy Kraninger helps oversee the agencies that are ripping kids from their parents. Now @realDonaldTrump wants her to run the @CFPB. I will put a hold on her nomination & fight it at every step – until she turns over all documents about her role in this. #FamiliesBelongTogether.”

Anyone who attended ACA International’s recent Washington Insights Conference is well-aware that Mick Mulvaney, acting director of BCFP, is at odds with Warren on many issues related to the bureau. In his keynote address at the ACA event, Mulvaney said the bureau’s structure and lack of Congressional oversight should be reviewed and reconsidered as it cannot continue to appropriately operate if it doesn’t have the same level of credibility of as other government agencies to include the Securities and Exchange Commission or the Federal Deposit Insurance Corporation.

Tuesday, Mulvaney issued the following statement in support of Kraninger’s nomination:

“I have never worked with a more qualified individual than Kathy. Her commitment to the law, to protecting consumers and to defending what works in our vibrant financial services sector, all while respecting hard-working taxpayers who pay their bills and play by the rules ensures that the Bureau will be in good hands throughout her term. Vigorous independence, sharp-as-a-tack intelligence, and simple, old-fashioned, Midwestern humility makes her the ultimate public servant. From navigating and interpreting how the federal government supports and regulates financial services for key stakeholders to helping stand up a brand-new federal agency when she was at the Department of Homeland Security in its earliest days, she has the kind of experience Washington so desperately needs. I know that my efforts to rein in the bureaucracy at the Bureau of Consumer Financial Protection to make it more accountable, effective, and efficient will be continued under her able stewardship.”

Under the Federal Vacancies Act, Mulvaney can serve as the BCFP’s acting director until Kraninger’s nomination process is completed. His interim term would have expired Friday, June 22, if Trump had not nominated Kraninger.

ACA International will continue to follow Kraninger’s nomination process.

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