Kathy Kraninger was recently approved by the Senate Banking Committee to serve as Director for the Consumer Financial Protection Bureau (CFPB). And upon confirmation by the full Senate, will eventually take over the reins from Acting Director, Mick Mulvaney. Just like her predecessor, Kraninger will undoubtedly continue to implement reforms that will rein in the overreaching Bureau.
Kraninger’s prior experience stems from her time at the Office of Management and Budget (OMB) where she oversaw the budget for financial regulations. At the OMB, Kraninger successfully managed to cut the CFBP’s budget and restrict its enforcement powers. And as CFPB Director, Kraninger will certainly be able to cut, restrict, and rein in the Bureau’s power much more.
Throughout Kraninger’s testimony to the Senate Banking Committee, she repeatedly mentioned that she does not plan on continuing the Bureau’s prior “regulation by enforcement policies.” In the past, these policies have set arbitrary punishments on certain financial firms without proper cause. Kraninger also stated that she believes the free market provides the best competition for small dollar loans and that the CFPB shouldn’t be the micromanager of that marketplace.
However, throughout her confirmation hearings, Democrats still managed to find absurd ways to discredit her successes. Many Democrats, including theCFPB’s chief architect, Senator Elizabeth Warren, claimed that somehow Kraninger was the mastermind behind the Administration’s recent family separation border policies and thus she should not lead the Bureau. However, there was no direct evidence pointing to Kraninger’s involvement in this policy. This outcry by Democrats is not only extremely irrelevant, it’s outright childish and should not be used as a reason to not confirm her.
The Senate should act sooner rather than later to confirm Kraninger as the Director of the CFPB. Like Mulvaney, Kraninger will continue to reevaluate the CFPB’s past decision making and only continue with enforcement when absolutely necessary. It’s time the CFPB stop acting as overpowering overlord of financial firms and more like an unbiased and fair consumer watchdog.