Welcome to Financial Advisor IQ
Follow

Trump’s Planned Consumer Protection Boss Signals Further Deregulation

By Alex Padalka June 18, 2018

The planned appointment of Kathy Kraninger to head the Consumer Financial Protection Bureau suggests president Donald Trump’s administration intends to continue cutting regulations on financial institutions, according to the Financial Times.

Kraninger, an associate director in the White House budget office, is a former Capitol Hill aide who has never worked in financial services nor as a regulator, according to the paper. She has also never made any public comments about the CFPB, the FT writes.

“The top official charged with protecting consumers in the financial services marketplace needs to be someone with a track record of doing just that,” the consumer advocacy group Americans for Financial Reform tells the paper. “But there is no sign that Kraninger even understands the various sides of this issue, let alone that she values the mission that Congress gave the CFPB.”

Kraninger would succeed Mick Mulvaney, the conservative acting chief of the agency since November, the FT writes. Mulvaney once called the financial watchdog set up to by the Dodd-Frank reforms a “sick joke” and has temporarily frozen the CFPB’s new regulations, according to the paper.

President Donald Trump (Getty)

Rob Nichols, president of the lobby group American Bankers Association, tells the FT he hopes Kraninger would build on the foundation of Mulvaney’s work.