The director of the Financial Protection Bureau (CFPB), Katie Craninger, resigned on Wednesday at the request of newly elected President Biden, clearing the way for the nominee to run the powerful regulatory agency.
Craninger, a Republican appointed by the former President TrumpDonald Trump Lil Wayne Receives 1
“I support the president’s constitutional prerogative to appoint senior government officials who support the president’s political priorities, which ensures that our government responds to the will of the people expressed in the presidential election,” Craninger wrote.
At the request of the Biden administration, I resigned today as director of the CFPB. I am proud of everything we have achieved on behalf of consumers. It was an honor for me to lead the agency during these challenging times. pic.twitter.com/tlK4IpOOLN
– Cathy Craninger (@CFPBDirector) January 20, 2021
Craninger was confirmed to lead the CFPB in December 2018 for a term of 2023. She was the second director of the agency set up by the 2010 Dodd-Frank Wall Street Reform Act to oversee how banks, lenders and credit card companies and service debt treat their customers.
Biden could have fired Craninger if he had not resigned, thanks to a Supreme Court ruling challenging the constitutionality of the CFPB, backed by Craninger and the Trump administration. The court found the structure of the CFPB unconstitutional in June and resolved the issue by repealing a provision restricting when the president could dismiss the bureau’s director.
Craninger’s resignation gives Biden the opportunity to quickly appoint an acting CFPB director to his possible nominee, Rohit ChopraRohit Chopra Hilicon Valley: Biden Stresses Need for Cybersecurity in Confirmation Hearings | FTC President to retire this month Progressives warn against appointing technical insiders for key antitrust roles Biden’s user bureau may take over the agency on Effective Day Progressive groups warn against appointing technical insiders for key antitrust roles MORE, is confirmed. Chopra is currently the Federal Commissioner for Trade and Biden can appoint him to lead the CFPB in office until it is formally nominated.
Chopra is expected to take a much more aggressive stance on the financial industry than Craninger, following in the footsteps of the former director Richard CordrayRichard Adams CordrayBiden consumer bureau to take over agency on Opening Day The consumer veterinary bureau that fights Trump will lead Biden’s plans to overhaul the agency The consumer bureau lifts restrictions on payday credit MORE (D) and Sen. Elizabeth WarrenElizabeth Warren’s Choice for Pentagon Cruises by Hearing Confirmation Senate Democrats call on Biden to immediately invoke the Defense Manufacturing Act. The choice of Biden’s customer office can be taken over by the agency on the Opening Day MORE (D-Mass.), CFPB Architect.