Mick Mulvaney, the White House budget director and acting head of the Consumer Financial Protection Bureau, has picked a deputy at the budget office, Kathy Kraninger, to succeed him at the consumer watchdog agency, according to two people familiar with the situation.
"She will bring a fresh perspective and much-needed management experience to the BCFP, which has been plagued by excessive spending, dysfunctional operations, and politicized agendas", White House spokeswoman Lindsey Walters said in a statement. The confirmation process could take months, and Mulvaney has said he expects to be at the bureau until the end of the year.
The CFPB was formed in the wake of the US financial crisis of 2007-08, authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Kraninger's nomination has already gained the support of financial services lobbyists, as well as the Consumer Bankers of America.
Last fall, a leadership showdown unfolded at the agency between Leandra English, whom the outgoing director, Obama appointee Richard Cordray, named to head the agency when he resigned from his position, and Mulvaney, whom Trump tapped to lead the agency shortly after Cordray's move. "The Consumer Financial Protection Bureau does not exist", Mulvaney told Congress in April, and now he's proven the point, at least when it comes to the sign in his lobby (h/t to Vox and thanks to Alan Zibel of Public Citizen for the photo, via Twitter).
J.W. Verret, an associate professor at the George Mason University Antonin Scalia Law School and financial regulation expert, said in an email that Kraninger was regarded in conservative Republican circles as very "smart", but he also pointed to her lack of consumer finance experience. "The White House hopes that she will be promptly confirmed by the Senate". She is a "wholly unqualified", said Karl Frisch, executive director of Allied Progress, an advocacy group.