Kathy Kraninger’s confirmation hearing to become director of the Consumer Financial Protection Bureau involved plenty of controversy, but little related to the actual work of regulating mortgages, credit cards, payday loans, and the other tasks involved with the job.
Instead, Democrats pressed Kraninger, currently an Office of Management and Budget official, on the extent of her involvement with the Trump administration’s “zero policy” immigration policy that resulted in families being separated at the border, and tried to highlight Kraninger’s lack of experience.
At moments, that led to heated confrontations. Sen. Elizabeth Warren, D-Mass., at one point told Kraninger that it “is a moral stain that will follow you for the rest of your life.”
But Kraninger, whose portfolio included the Department of Homeland Security, said that she didn’t play a role in formulating the policy, and avoided discussing it in more detail despite persistent questioning from Democrats.
In fact, the bigger debate took place between senators, with the committee chairman, Mike Crapo of Utah, and the top Democrat, Sherrod Brown of Ohio, arguing extensively at the hearing’s outset over Democrats’ request to have the administration hand over documents related to Kraninger’s role at OMB.
“I hope this doesn’t change the tenor of cooperation we have on many other issues,” said Crapo, who has moved bipartisan legislation this Congress.
In questioning, several Democrats did try to get clarity from Kraninger on her intentions for regulating payday loans, handling disparate impact cases against lenders, and much of the other substantive business involving the CFPB director. But Kraninger was mostly able to avoid giving direct answers, saying that she would make major decisions after entering office and discussing matters with staff.
Democrats were successful, though, in highlighting her lack of experience.
In a rapid succession of questions, Sen. Heidi Heitkamp, D-N.D., got Kraninger to acknowledge that she has no experience working in or overseeing financial firms, enforcing consumer protection laws, interpreting fair lending laws, volunteering to help with consumer protection, or even studying finance or economics. Kraninger did say that she volunteered teaching financial literacy in college and had studied administrative procedure in law school.
Nevertheless, Republicans in the majority came into the hearing prepared to support her nomination.
“I have the utmost confidence that she is well prepared to lead the bureau,” said Crapo.
Currently, the agency is being run on an acting basis by Mick Mulvaney, who is also the White House Office of Management and Budget director.
Mulvaney, Kraninger’s boss at OMB, has moved quickly to pull back on the bureau’s aggressive oversight of markets and enforcement actions against companies, and shifted the focus to regulatory relief.
“Nobody wants Mr. Mulvaney out of the CFPB faster than I do,” said Brown. “But American consumers can’t afford five years of someone who stands with the bankers in this administration and on Wall Street.”
