Kathy Kraninger, President Trump’s pick as the new full-time director of the Consumer Financial Protection Bureau (CFPB), passed an important procedural vote in the Senate on Thursday (Nov. 29), bringing her that much closer to nomination, according to The Washington Post.
The CFPB was created after the global financial crisis as a way to keep an eye on how banks handle mortgages, payday loans, credit cards and other financial concerns. If nominated, the position would make Kraninger one of the most powerful banking regulators in the country.
Kraninger does not have previous experience as a financial regulator. She helped create the Department of Homeland Security, and since 2017, she has been the associate director of general government at the Office of Management and Budget.
During her testimony in July, according to a report by MarketWatch, Kraninger told the Senate Banking Committee how she would run the bureau, if nominated.
She supports cost-benefit analyses, and when formulating new rules, she said she would employ “effective use of notice and comment,” explaining that it’s “essential for ensuring the proper balancing of all interests.” Kraninger added that she’s in support of tailored regulations to “reduce the burden of compliance,” especially when it comes to smaller players in the marketplace. She went on to say that she would take aggressive action against organizations that break rules.
Richard Hunt, the president and CEO of the Consumer Bankers Association, an organization that represents financial institutions, wrote a letter to Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer in support of Kraninger.
“It is imperative the Bureau have a permanent and full-time director to fulfill its mission, and we look forward to working with Ms. Kraninger on common-sense regulations that protect consumers while also allowing a well-regulated banking system to serve families, small businesses and local communities,” Hunt wrote.
A final vote for Kraninger’s nomination may happen as soon as next week.