WASHINGTON–How senators viewed the qualifications of Kathy Kraninger to lead the Bureau of Consumer Financial Protection fell largely along party lines following Kraninger’s testimony here yesterday.
The biggest issue of interest to credit unions to come out during the three-hour hearing before the Senate Banking Committee had to do with how the Bureau should be led.
During the hearing both Sen. Robert Corker (R-TN) and Sen. Jerry Moran (R-KS) said the BCFP is in need of oversight by a commission, rather than a single director. 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.
Both credit union trade groups have advocated for a three- or five-person panel or board to oversee the Bureau.
During the hearing Kraninger largely provided non-answers, even as she was grilled by several Democratic senators over both her qualifications to lead the Bureau and her positions on numerous issues.
Kraninger did say during her testimony that under her leadership the Bureau would seek 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.
Senate Democrats pressed Kraninger for her positions on issues such as payday lending, enforcement and rule-making, but the nominee did not reveal any details in her answers.
At one point, frustrated over what he viewed as a lack of response, Sen. John Tester (D-MT) told Kraninger, "You got the votes to lead the agency. It would be really helpful to know where you're at."
Kraninger currently serves in a mid-level position inside the Office of Management and Budget, which is led by Mick Mulvaney, who is also acting director of the Bureau. She told the committee she approves of the job Mulvaney has been doing.
Following the hearing, CUNA President/CEO Jim Nussle issued a statement saying, “We thank a number of senators for raising the importance of structure at the Bureau to prevent fluctuation in policy. "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."