Office of consumption director resigns after Biden inauguration

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Consumer Financial Protection Bureau (CFPB) director Kathy Kraninger resigned on Wednesday at the behest of newly sworn-in President Biden, paving the way for her candidate to head the powerful regulatory agency.

Kraninger, a Republican appointed by the former President TrumpDonald Trump envoy Biden calls on North Korea to resume nuclear talks Biden’s misguided about-face on COVID testing puts us all at risk., announced his departure via Twitter about an hour after Biden was inaugurated as the 46th President of the United States.

“I support the president’s constitutional prerogative to appoint senior officials in the government who support the president’s political priorities, which ensures that our government is responsive to the will of the people as expressed in the presidential elections,” Kraninger wrote.

Kraninger was confirmed as head of CFPB in December 2018 for a term until 2023. She was the second full-time director of the agency, which was created by the Dodd-Frank Wall Street reform law of 2010 to oversee the way banks, lenders, credit card companies and debt management officers treat their customers.

Biden could have fired Kraninger had she not resigned thanks to the Supreme Court ruling in a challenge to the constitutionality of the CFPB backed by Kraninger and the Trump administration. The court ruled the CFPB’s structure unconstitutional in June and solved the problem by repealing a provision limiting when the president can remove the director of the office.

Kraninger’s resignation gives Biden the opportunity to quickly appoint an interim director to lead the CFPB through to its eventual candidate, Rohit ChopraRohit ChopraFTC Expected to Reveal New Facebook Antitrust Strategy Biden Signals Firm Position on Technology with Antitrust Choices Hillicon Valley: FTC Votes to Expand Antitrust Enforcement Powers | US and UK Agencies Warn Russian Hackers Using “Brute Force” to Target Hundreds of Groups | Trump allies launch new social media platform PLUS, is confirmed. Chopra is currently a Federal Trade Commissioner and Biden could name it lead the CFPB on an interim basis until his official appointment.

Chopra is expected to take a much more aggressive stance towards the financial sector than Kraninger, following in the footsteps of the former CEO Richard CordrayRichard Adams CordrayDennis Kucinich Joins Race To Be Mayor Of Cleveland Biden Administration Reverses Trump-Era Policy That Hindered Investigations Of Student Loan Companies On The Money: IRS To Begin Monthly Credit Payments tax for children July 15 | A quarter of Americans suffered financial blows in 2020: Fed MORE (D) and sen. Elizabeth warrenElizabeth Warren GOP Senator on Progressive Path Urges Biden to Rename Jerome Powell Progressives Consider Change in Strategy After High-Profile Losses (D-Mass.), The architect of the CFPB.

During his approximately two-year stint in office, Kraninger stepped up CFPB’s financial education efforts, sought to expand access to financial services by reducing regulatory burdens on fintech, and issued new regulations. on short-term high interest loans, debt collection and mortgages. standards.

“Throughout my career, I have focused on implementing common sense solutions to complex problems and creating real value for the American people,” Kraninger wrote. Previously, she served in the White House Office of Management and Budget, the Department of Homeland Security, and several congressional committees.

“Over the past two years, this is exactly what I have done – with the law as my guide, with the support of dedicated CFPB staff, and in partnership with many stakeholders who join the Office’s mission.

Republicans and industry advocates praised Kraninger for seeking a more moderate path for the CFPB, which had previously been led by fiercely ideological Cordray directors and a former interim chief Mick mulvaneyMick Mulvaney Headhunters Struggle to Find Jobs for Former Trump Officials: Reports Trump Leftovers Deny Social Security Benefits to Hard-Working Americans Mulvaney Calls Trump Comments on Capitol Riot “Manifestly false” MORE.

“We would like to thank Director Kraninger for responding to the call for public service and, above all, for her commitment to consumers. She advanced the Bureau’s financial education efforts, which were the hallmark of her tenure, and worked to ensure consistent and stable leadership, ”said Richard Hunt, President and CEO of Consumer Bankers Association, a trade group for US banks.

Democrats and financial industry critics, however, have accused Kraninger throughout his tenure of not doing enough to hold the industry accountable for harms and weakening rules meant to protect vulnerable consumers.

Updated at 14:29

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