Consumer Financial Protection Bureau (CFPB) director Kathy Kraninger resigned on Wednesday at the request of newly appointed president Biden, paving the way for his nominee to lead the powerful regulatory agency.
Kraninger, a Republican appointed by former President Trump
Donald TrumpLil Wayne gets Trump forgiveness in the 11th hour Trump grants clemency to more than 100 people, including Bannon Trump must forgive Bannon: reports MORE, announced his departure via Twitter about an hour after Biden was installed as the 46th president of the United States.
“I support the president’s constitutional prerogative to appoint senior government officials who support the president’s political priorities, which ensures that our government meets the will of the people expressed in the presidential elections,” wrote Kraninger.
At the request of the Biden administration, today I resigned as Director of the CFPB. I am proud of everything we have achieved on behalf of consumers. It was an honor to lead the agency during these difficult times. pic.twitter.com/tlK4IpOOLN
– Kathy Kraninger (@CFPBDirector) January 20, 2021
Kraninger was confirmed to lead the CFPB in December 2018 for a term that will last until 2023. She was the agency’s second full-time director, which was created by the 2010 Dodd-Frank Wall Street reform law to oversee how banks, creditors and credit card companies and debt agents treat their customers.
Biden would have been able to fire Kraninger if she had not resigned, thanks to the Supreme Court decision in a challenge to the constitutionality of the CFPB supported by Kraninger and the Trump administration. The court found the CFPB structure unconstitutional in June and resolved the issue by overturning a clause that limits when the president can fire the bureau director.
Kraninger’s resignation gives Biden the opportunity to quickly appoint an interim director to lead the CFPB until his eventual nominee, Rohit Chopra
Rohit ChopraHillicon Valley: Biden highlights need for cyber security at confirmation hearings | FTC president to step down this month | Progressives warn against naming technology insiders for key antitrust functions. The choice of Biden’s consumer agency could take over the agency on the day of the inauguration., is confirmed. Chopra is currently Federal Trade Commissioner and Biden could point you lead the CFPB on an interim basis until formally appointed.
Chopra is expected to take a much more aggressive stance towards the financial sector than Kraninger, following in the footsteps of the former director Richard Cordray
Richard Adams CordrayBiden Consumer agency can take over the agency on investing day The consumer agency vet who fought Trump will drive Biden’s plans to reform the agency Consumer agency repeals payday loan restrictions MORE (D) and Sen. Elizabeth Warren
Elizabeth WarrenBiden chooses to cruise the Pentagon by confirming to hear Senate Democrats ask Biden to immediately invoke the Defense Production Act. (D-Mass.), The architect of the CFPB.