Senate confirms Trump’s consumer regulator choice

© Reuters. FILE PHOTO: Kraninger, CFPB nominee, testifies before Senate Banking Committee confirmation hearing on Capitol Hill in Washington

By Katanga Johnson

WASHINGTON (Reuters) – The U.S. Senate voted 50-49 on Thursday to confirm President Donald Trump‘s nominee to lead the U.S. consumer watchdog despite opposition from Democrats and consumer groups who say no. is qualified.

Kathy Kraninger will serve as director of the Consumer Financial Protection Bureau (CFPB), replacing Acting Chief Mick Mulvaney, after Trump signs a statement approving his five-year term.

The banking industry and consumer groups will be watching to see if Kraninger, who is currently a senior official in the White House budget office, will take on Mulvaney’s role and continue to aggressively restrict the rule-writing and enforcement agenda. CFPB.

Kraninger faced criticism during his nomination hearing in July about the role he played in the Trump administration’s “zero tolerance” immigration policy that separated more than 2,000 children from their parents.

Kraninger, who works closely with Mulvaney in the Office of Management and Budget, has denied having a role in establishing or developing that policy, but said he attended meetings related to its implementation.

The CFPB was formed in 2011 under Democratic President Barack Obama in the wake of the 2007-2009 financial crisis to protect ordinary Americans from predatory lending.

Democrats say the agency plays a critical role in protecting consumers, but Republicans have repeatedly criticized the CFPB for being tough and over the top.

“The majority of the Senate has endorsed CFPB a nominee indistinguishable from Mick Mulvaney, who has gone to great lengths to dismantle from within an agency that once delivered real results for American families harmed by Wall Street and predatory lenders,” Lisa Donner, who heads the consumer advocacy group, Americans for Financial Reform, said in a statement.

However, industry groups said Thursday that Kraninger’s strong management experience in the budget office, where he manages the budget for financial regulators, made her a good fit for the agency.

“We learned during her nomination hearing that she believes in promoting competition and adequately tailoring regulations taking into account both costs and benefits,” said Rob Nichols, president and CEO of the American Bankers Association, in a statement.

“We share those views and we believe that those principles will benefit consumers.”

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