While the nomination of a permanent director to lead the Bureau of Consumer Financial Protection is a positive development, CUNA believes the best solution is a multi-member, bipartisan commission. CUNA wrote to Senate leadership Monday in advance of upcoming Senate consideration of Kathy Kraninger to lead the bureau as director.
“Stability of leadership and clarity of mission are critical features of any efficient and effective regulatory body. For that reason, CUNA welcomes the nomination of a permanent Director to the BCFP and urges the U.S. Senate to take swift action to resolve the unsettled nature of the Bureau’s future,” the letter reads. “Credit unions look forward to working with a new, permanent BCFP Director, one that we hope will recognize the unique structure of credit unions and the enormous benefit credit unions provide to American consumers in need of financial services.”
CUNA is a strong supporter of a commission to lead the bureau and has advocated for a commission by supporting bills that would make this change, as well as in letters to the bureau and Congress.
“The current structure has proven to be the bureau’s fatal flaw and has resulted in an agency that is only independent from the minority political party. The bureau’s history heretofore suggests the Bureau has extraordinary political dependence that will almost certainly lead to wild swings in rulemakings, supervisory practices, and enforcement policies if the Bureau’s structure is not addressed by Congress,” the letter reads. “Consumers deserve better than the political bureau Congress has established. Only through the appointment of a bipartisan commission will the Bureau have the type of independence that proponents herald and the steady approach to regulation that consumers and regulated entities need.”
The Senate is expected to vote on Kraninger’s nomination in the coming days.