The leadership chairs at the Consumer Financial Protection Bureau (CFPB) are moving once again. First, it was reported that Secretary of the Treasury Scott Bessent was acting Director. Then Russell Vought, the head of the OMB, became acting CFPB director last week. Yesterday, it was revealed that former FDIC Board Member Jonathan McKernan has now been selected to be Director of the CFPB.
The CFPB is enduring a period of upheaval as there is a possibility that it will be shut down and certain responsibilities will be migrated to other financial regulators.
One of the issues facing the CFPB is the accountability to Congress, which typically controls the purse strings of the federal bureaucracy. The CFPB just tells the US Federal Reserve how much money it needs. Clearly, this needs to be addressed.
There are other concerns.
Following the news of McKernen’s selection, American Fintech Council (AFC) Chief Executive Officer Phil Goldfeder congratulated the public official.
“McKernan’s extensive experience at the FDIC, FHFA, and the Senate Banking Committee provides him with a strong understanding of financial regulation and a balanced perspective on consumer protection. Throughout his career, Mr. McKernan has supported regulatory frameworks that foster innovation while safeguarding consumers. His approach to regulation emphasizes a fair and transparent financial system that empowers consumers while allowing for the responsible growth of new financial products and services. AFC looks forward to working with him to ensure that the CFPB continues to promote both consumer protection and responsible innovation in financial services. We are confident that under his leadership, the CFPB will effectively address the challenges and opportunities of an evolving financial landscape.”
The Consumer Bankers Association also joined in with accolades of McKernan’s appointment, declaring they stand ready to work with the Trump Administration to slash red tape and boost innovation.
Hopefully, McKernan is the final pick, and the agency can move forward as a re-envisioned regulator or simply make it go away while preserving some of the duties at one of the other many financial regulators.