Consumer Financial Protection Bureau (CFPB) director Kathy Kraninger resigned Wednesday at the request of newly-sworn President Biden, paving the way for his candidate to lead the powerful regulatory body.
Kraninger, a former Republican appointed President Trump
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“I support the President’s constitutional prerogative to appoint senior officials within the government who support the President’s policy priorities, ensuring that our government responds to the will of the people as expressed in presidential elections,” Kraninger wrote.
At the request of Biden’s administration, I resigned today as director of the CFPB. I am proud of everything we have achieved for consumers. It was an honor to lead the agency in these challenging times. pic.twitter.com/tlK4IpOOLN
– Kathy Kraninger (Director of FPCFPB) January 20, 2021
Kraninger was confirmed to lead the CFPB in December 2018 for a term ending in 2023. She was the second full-time director of the agency, which was created by the 2010 Dodd-Frank Wall Street Reform Act to oversee how banks , lenders, credit card companies and debt managers 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 in June that the structure of the CFPB was unconstitutional and resolved the issue by dropping a provision allowing the president to dismiss the bureau’s director.
Kraninger’s resignation gives Biden the opportunity to quickly appoint an acting director to lead the CFPB to its eventual candidate, Rohit Chopra
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Chopra is expected to take a much more aggressive stance on the financial sector than Kraninger did, following in the footsteps of former director Richard Cordray
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