The U.S. Senate has confirmed Kathleen Kraninger as the new Director of the Bureau of Consumer Financial Protection (BCFP).
“NAFCU is consistently engaged with the bureau on issues critical to the credit union industry and we look forward to working with Director Kraninger to ensure a healthy regulatory environment in which credit unions can grow, thrive and successfully serve their membership,” said National Association of Federally-Insured Credit Unions president and in a press release.
“Additionally, we will continue to advocate for a tailoring of regulation at the bureau to reign in unscrupulous behavior by Wall Street banks and bad marketplace actors while exempting credit unions from burdensome regulations that will simultaneously raise costs on their members,” he added.
According to Reuters, the Senate voted 50-49 to confirm Kraninger, who faced criticism during her nomination hearing. One issue: She does not have previous experience as a financial regulator. Instead, 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, she told the Senate Banking Committee that she supports cost-benefit analyses, and when formulating new rules, she would employ “effective use of notice and comment,” adding that it’s “essential for ensuring the proper balancing of all interests.”
Kraninger also stated that she supports tailored regulations to “reduce the burden of compliance,” but would take aggressive action against organizations that break rules.
Richard Hunt, the president and CEO of the Consumer Bankers Association, wrote a letter to the Senate 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,” he wrote.