Removing Barriers Blog

Nomination Hearing Held for Bureau Director Nominee
Posted July 19, 2018 by CUNA Advocacy

Earlier today, the Senate Banking Committee held a nomination hearing for Kathleen Kraninger - the President's nominee for Director of the Bureau of Consumer Financial Protection (BCFP).  Prior to the hearing, CUNA wrote to Chairman Crapo and Ranking Member Brown in support of the nomination process and continued to urge Congress to support a bipartisan commission for the Bureau. 

Ms. Kraninger currently serves as associate director at the Office of Management and Budget, where she oversees the agencies responsible for border policy and coordinating disaster aid. 

In the letter CUNA wrote, "Stability of leadership and clarity of mission are critical features of any efficient and effective regulatory body.  Credit unions look forward to working with a new permanent BCFP Director, one that we hope will recognize the unique structure of credit unions and the enormous benefit credit unions provide to American consumers in need of financial services." 

During the hearing Senator Corker said BCFP is in need of oversight by a commission, citing the often political nature of the bureau’s decisions. 

Senator Moran also cited his preference in a board/commission at the Bureau. Moran said a governing body would prevent dramatic swings in policy from one director to another and create more transparency with Congress and other agencies. 

"We thank a number of senators for raising the importance of structure at the Bureau to prevent fluctuation in policy," said CUNA President/CEO Jim Nussle. "The common-sense approach for Congress is to establish a multimember, bipartisan commission. Short of that, confirming a permanent director at the Bureau brings us one step closer to protecting consumers and the millions of members relying on credit unions. We look forward to working with Ms. Kraninger, should she be confirmed by the Senate, and hope that she will recognize the unique framework of credit unions and the enormous benefit they provide to American consumers in need of financial services." 

In her testimony Kraninger, said under her leadership the Bureau would to adhere four principles: fairness and transparency, to include consideration of tailoring; cooperation with other financial regulators and state authorities; the safeguarding of sensitive information; and accountability to the American people, including with respect to the Bureau's budget. 

In April, several financial trade associations wrote to Congress in support of H.R. 5266, the Financial Product Safety Commission Act of 2018, which would transition the governance structure of the Bureau from a sole director to a five-person commission.  On behalf of America’s credit unions and their 110 million members, CUNA will continue to advocate for a multi-person commission to provide the certainty that is essential for consumers and the financial services industry, regardless of which political party is in the White House.