WASHINGTON—It’s been a busy week in Washington, with several new appointments—including an appointment to replace an appointment.
Below is a look at two important moves made late last week by the Trump Administration: Former NCUA Chairman Rodney Hood has been named acting Comptroller of the Currency, and Russel Vought is now acting director of the CFPB.
Vought To Lead CFPB
Russell Vought
Vought, who Thursday was confirmed by the Senate as the head of the Office of Management and Budget, was announced as the CFPB chief late Friday.
Vought now steps in for Treasury Secretary Scott Bessent, who earlier this week was also named acting CFPB director following the departure of Rohit Chopra.
As CUToday.info reported, Bessent this week mandated a suspension of a wide range of activities at the CFPB. And among those activities halted is the imposing of the $5 OD cap for financial institutions over $10 billion in assets.
That led analysts to cast doubt on the future of many CFPB rules, especially those that have yet to take effect.
Bessent this week instructed CFPB personnel to cease all rulemaking activities and suspend the effective dates of any rules that had not yet taken effect. He further directed employees to stop all activities related to enforcement actions, litigation, and public communications.
Several analysts believe Vought will not change the course set by Bessent, as Vought is also a strong proponent of deregulation.
Michael Moebs, economist and chair of Moebs $ervices, agreed with that perspective, adding that Vought is more likely than Bessent to dismantle the CFPB.
The Wall Street Journal reported that Friday, Elon Musk, posted “CFPB RIP” on his X social-media platform with an emoji of a tombstone.
Concerns have been mounting among CFPB staff members following the arrival of officials from Musk’s Department of Government Efficiency. These officials were granted “read-only” access to various systems, according to an email to staff reviewed by The Wall Street Journal.
CU Trades react To Vouhgt’s Appointment
America’s Credit Unions and the Defense Credit Union Council both stated they look forward to working with Vought.
"As a strong defender of fiscal restraint and deregulation, many of Vought’s priorities intersect with the goals and priorities of the credit union industry. We look forward to discussing our ideas and the credit union difference as Vought takes on this interim role,” said Jim Nussle, ACU president/CEO.
"Mr. Vought will carry out President Trump's commitment to deregulation and bring the agency back into line with Congressional intent," said DCUC Chief Advocacy Officer Jason Stverak. "Our hope is that the CFPB will trust credit unions as member-owned cooperatives to serve the best interests of their members."
Hood To Lead OCC
Hood was named to his new role late Friday, as well, and begins his role as OCC boss Monday.
Treasury Secretary Scott Bessent made the appointment.
Rodney Hood
“I am grateful for the trust of Secretary Bessent and will work diligently to promote a regulatory environment that is effective without being excessive,” said Hood. “I remain committed to a balanced framework—one that fosters innovation, expands financial inclusion, and ensures that all Americans have fair access to the financial services they need to thrive. I look forward to leading the dedicated career staff at the OCC, whose expertise and commitment are essential to maintaining a safe and sound banking system.”
Hood succeeds Acting Comptroller Michael J. Hsu, who has served in the role since May 10, 2021.
"I thank Mr. Hsu for his many years of dedicated public service and his commitment to strengthening the resilience of the U.S. banking system," said Hood.
Hood was the 11th NCUA chairman, serving in that role from 2019 to 2021. Hood was the first African-American to lead a federal banking agency.
Two Terms
Hood served two separate terms on the NCUA board. Former President George W. Bush tapped Hood to serve in November 2005, and Hood completed his first term in August 2009.
Washington credit union advocate John McKechnie worked at NCUA during Hood’s first tenure on the NCUA board in the early 2000s.
Dennis Dollar
"And I can attest, firsthand, to the qualities that he brings to any regulatory role," McKechnie said. "He’s smart, well-prepared, forward-looking, energetic. I am confident that Rodney will excel in this new post, as he did during his time at NCUA. Good luck and Godspeed to him.”
Defense Credit Union Council Chief Advocacy Officer Jason Stverak called Hood's selection "an incredible choice by President Trump."
"Rodney Hood understands the American financial system and should be a valued and trusted voice on the economic challenges our country faces," Stverak said.
Former NCUA Chairman Dennis Dollar told CUToday.info that Hood is one of the most "balanced regulators" he has ever known.
"He’s tough when the situation requires it and flexible if the circumstances allow," said the Dollar Associates principal partner. "He had exactly the right touch during his two terms at NCUA and certainly will be an effective regulator at the OCC. Nobody will push him around, but he’s not actively looking to burden with over-regulation. I go back to my original description--balanced.”
America’s Credit Unions congratulated Hood on his appointment.
"We worked closely with Hood during his tenure at the NCUA and shared and encouraged his vision for a regulatory environment that reduces burdens and promotes growth for the credit union system," said Jim Nussle, America’s Credit Unions president/CEO. "To the extent we engage with the OCC, we look forward to continuing to work with Hood in policy work when we need to ensure a fair environment for our members.”