July 15, 2019

July 15, 2019

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Kathy Kraninger’s first day as Director of the BCFP

Today was Kathy Kraninger’s first day at the BCFP. According to her remarks at a press conference this afternoon she spent most of her day meeting staff.

In answer to questions from the press, she made the following points:

  1. She has not yet decided what policies of Acting Director Mick Mulvaney that she will change. She noted the important difference in leadership posture between her and Mulvaney in that her status as Director will be full-time. She emphasized that she will be making her own decisions for which she will be fully accountable.

  2. She will take a fresh look at Mulvaney’s decision to change the Bureau’s name from the Consumer Financial Protection Bureau (CFPB) to the Bureau of Consumer Financial Protection (BCFP). She acknowledged the internal BCFP report that the name change would cost the industry $300 million. She stated that she cares “more about what the agency does than what it is called.” She said that this will be a “near-term” decision.

  3. She indicated that the Bureau’s budget is near and dear to her heart and that she will be prioritizing the budget because she soon needs to advise the Fed of how much funding the Bureau will need for the next quarter.

  4. She underscored that the Bureau will remain very focused on enforcement and that she will take seriously the Bureau’s mission to take enforcement actions against “bad actors” to the full extent of the law.

  5. She mentioned that she does not presently have an opinion regarding the use of the “disparate impact” theory in enforcing the Equal Credit Opportunity Act. She alluded to a conversation she had today with a member of the Bureau’s staff who is studying the issue.

  6. She indicated that her regulatory priorities are reflected in the Bureau’s most recent semi-annual regulatory agenda.

  7. Finally, she expects that she will be speaking at some time with former Director Richard Cordray since it has always been her policy to speak to her predecessors in office at other government jobs she has held.

Copyright © by Ballard Spahr LLP

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Kaplinksy, partner, New York, finance
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Alan S. Kaplinsky is Co-Practice Leader of the firm's Consumer Financial Services Group, which has more than 115 lawyers. Mr. Kaplinsky devotes his practice exclusively to counseling financial institutions on bank regulatory and transactional matters, particularly consumer financial services law, and defending financial institutions that have been sued by consumers in individual and class action lawsuits and by government enforcement agencies. Visit Mr. Kaplinsky's profile in Wikipedia.

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