The CFPB, Washington’s Flashpoint Financial Regulator: QuickTake Q&A

Karl Frisch, executive director of Allied Progress, a consumer watchdog group, said the selection “looks like nothing more than a desperate attempt by Mick Mulvaney to maintain his grip.” He described Kraninger’s relevant experience as “basically non-existent.”

Kraninger specialized in homeland security issues before joining the OMB and previously worked on budget issues in the House and Senate on Capitol Hill. At the White House her duties have included overseeing budget issues for all financial services regulators --experience the White House credits as key credentials for the job at CFPB.

Still, in financial services circles, not much is known about the Georgetown Law School graduate. Bank lobbyists and congressional staffers confessed they hadn’t heard of her, and had to google her name when they learned she might get the job, said people familiar with the matter.

Kraninger isn’t without fans. “Her experience at OMB alongside Acting CFPB Director Mick Mulvaney, along with her years of work on Capitol Hill and in the executive branch, would serve her well in this important position,” Rob Nichols, president of the American Bankers Association, said in an emailed statement. “We look forward to learning more about her views on specific regulatory issues during the confirmation process.”

Rejected Candidates
The White House interviewed candidates for months before it opted for Kraninger, people familiar with the process said.

Others on the list included Darrell Issa, the Republican congressman from California, and J. Mark McWatters, who was tapped by Trump last year to run the National Credit Union Administration. McWatters had the backing of administration officials and finance executives, people familiar with the matter said. Todd Zywicki, a professor at George Mason University’s Antonin Scalia Law School, who’d been critical of the CFPB in testimony to Congress, was also considered, the people said.

Ultimately, the White House opted for someone with government management experience and who was perceived to have the chops to rein in what conservatives have long complained is “excessive spending” at the agency.

Budget Axe
Cost-cutting has been one of Mulvaney’s top priorities; he sliced $200 million out of the CFPB budget this year and plans to reducing next year’s budget by 20 percent. Yet the cost-cutting isn’t mandated by Congressional appropriations targets -- the agency’s budget comes from a fund within the Federal Reserve.

Staffers for key Democratic lawmakers who will vote on Kraninger’s nomination questioned her credentials and, like watchdog Frisch, wondered if her selection was designed to keep Mulvaney in the job as long as possible.