Executive Calendar

Floor Speech

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Mr. CRAPO. Mr. President, I rise to speak in support of the nomination of Kathy Kraninger to be Director of the Consumer Financial Protection Bureau.

Ms. Kraninger has had a distinguished career in public service, with exposure to a diverse set of Federal agencies. She brings significant leadership experience at Federal agencies on Capitol Hill, with particular expertise in the budget and appropriations processes.

She has served as Associate Director for General Government at the Office of Management and Budget since March 2017. In that capacity, she oversees nearly $250 billion in the budgetary resources for seven Cabinet Departments, and 30 other Federal Agencies, including the Bureau.

In addition, she serves as OMB's principal policy official for issues related to the Treasury Department, the Department of Housing and Urban Affairs, and Federal financial regulators.

Prior to her time at OMB, Ms. Kraninger served in leadership positions at the Department of Transportation and the Department of Homeland Security, as well as having served on the staff of several congressional committees, including on the Senate Appropriations Committee.

As Director of the Bureau, Ms. Kraninger would be charged with overseeing the market for consumer financial products and services, enforcing many Federal consumer financial laws, and protecting consumers. The Bureau's supervision, regulation, and enforcement decisions have an immense impact on consumers' access to critical financial products and services.

At her nomination hearing, Ms. Kraninger reiterated her dedication to fulfilling the Bureau's congressional mandate of ensuring all consumers have access to markets for consumer financial products and services that are fair, transparent, and competitive.

At her hearing, Ms. Kraninger identified what her first four priorities would be if she were to be confirmed: ensuring the Bureau is fair and transparent, including the use of robust cost-benefit analysis, notice and comment rulemaking, and tailoring regulations to ensure that consumers are not unnecessarily and smaller companies are not disproportionately harmed; improving collaboration with other financial regulators in the States on supervision and enforcement; limiting data collection to only what is necessary and strengthening its protection; and making sure the Bureau is held accountable.

She was also forceful in saying:

Nothing is more destructive to competitive markets and consumer choice than fraudulent behavior. Under my stewardship, the Bureau will take aggressive action against bad actors who break the rules by engaging in fraud and other illegal activity.

It is good that Ms. Kraninger plans to prioritize limiting data collection and strengthening the protection of consumers' sensitive, personal financial information.

I have long been critical of big data collection activities by private organizations and Federal agencies, particularly that of the Bureau and its encroachment into the private financial lives of Americans across this country. The Bureau's data collection is especially concerning in light of the number of high-profile cyber attacks in recent years and news about how outside groups have collected private information from Facebook users.

It is important that the Bureau, other Federal agencies, and private organizations comprehensively review their data collection processes and narrow and enhance those processes to better protect consumers' personal information.

Big data and privacy issues will be a major priority for the Banking Committee in this next Congress. There is growing support to give people the necessary tools to protect their privacy and opt out of certain data collection.

I am confident that Ms. Kraninger is well prepared to lead the Bureau in enforcing Federal consumer financial laws, in protecting consumers' sensitive personal financial information, and in increasing its transparency and accountability. In fact, many of these issues were key points of discussion during Ms. Kraninger's nomination hearing.

Senator Tillis asked Ms. Kraninger about the Bureau's immense power and level of accountability. Ms. Kraninger told the Banking Committee: ``I have noted that my focus is on running the agency as Congress established it, but, certainly, working with Members of Congress, I'm very open to changes in the structure that will make the agency more accountable and transparent.''

In responding to a question that Senator Toomey posed about the Bureau's potential impact on small businesses, Ms. Kraninger said:

I absolutely believe that there is a limited intent for the Bureau to be engaged in small business oversight or engagement there. So that's something that should be limited.

Senator Moran asked Ms. Kraninger about providing greater clarity to companies that are overseen by the Bureau, to which she responded:

I completely agree that it is critical to have clear rules so that lenders, creditors, and consumers themselves know what the rules are, that they are not, somehow, told after the fact that they broke a rule they weren't even aware of or that it had, somehow, changed without any proper notice and comment process, to really understand the impacts and the opportunity to tailor.

In addition, numerous key stakeholders have written to the Banking Committee in support of Ms. Kraninger's nomination and to emphasize the positive attributes that prepare her to lead the Bureau. Ms. Kraninger has received widespread support from community banks and credit unions, consumer bankers, housing organizations and Realtors, taxpayer advocacy groups, and auto dealers.

Rebeca Romero Rainey, the president and CEO of the Independent Community Bankers of America, said:

I believe she understands the critical role played by community banks in creating access to consumer and small business credit and supporting prosperity in American communities. This perspective will strengthen the Bureau's rulemaking. I also believe she has a strong commitment to making the Bureau accountable, effective and efficient.

Following Ms. Kraninger's being reported favorably from the Banking Committee, Rob Nichols, the president and CEO of the American Bankers Association, said:

Ms. Kraninger detailed her substantial government and management experience that would help her lead the Bureau, and she committed to satisfying the Bureau's mandate of ensuring consumers have access to financial products and services that are ``fair, transparent and competitive.'' We welcome that commitment and her pledge to maintain transparency and accountability if confirmed.

Jim Nussle, the president and CEO of the Credit Union National Association, said that until the Bureau's structure moves from a single Director to a bipartisan commission, ``consumers and regulated entities will be best served by a Senate-confirmed, permanent Director leading the Bureau.''

Dan Berger, the president and CEO of the National Association of Federally-Insured Credit Unions, said: ``A Senate-confirmed, full-time Director of the Bureau will help provide regulatory certainty and clarity while providing important leadership and long-term focus that will allow credit unions to continue to meet the needs of their members.''

Neil Bradley, the executive vice president and chief policy officer of the U.S. Chamber of Commerce, said: ``Ms. Kraninger's experience will serve her well as the Director of the Bureau, especially as it aims to be a more transparent and accountable agency.''

Richard Hunt, the president and CEO of the Consumer Bankers Association, said that until the Bureau moves from a single Director to a bipartisan commission, ``it is imperative the Bureau have a permanent and full-time Director to fulfill its mission, and we look forward to working with Ms. Kraninger on commonsense regulations that protect consumers while also allowing a well-regulated banking system to serve families, small businesses, and local communities. CBA is grateful to Acting Director Mick Mulvaney for his leadership at the agency and for his willingness to listen to the opinions of all stakeholders.''

The Bureau was the most polarizing part of Dodd-Frank, and it is not surprising that the confirmation votes of then-nominee Richard Cordray and now Kathy Kraninger are contentious. Some of Ms. Kraninger's opponents have raised questions about her potential involvement with respect to the administration's zero-tolerance policy and the administration's response to Hurricane Maria.

During her nomination hearing, I asked Ms. Kraninger to what extent, if any, she was involved in the development of the administration's zero-tolerance policy or the administration's response to Hurricane Maria. She responded: ``I had no role in setting the zero-tolerance policy.''

She also said, with respect to Hurricane Maria, that in the Office of Management and Budget, including herself, ``we have a role in reviewing disaster declaration recommendations that go to the President. So we are involved from that point. We also put together, at the Office of Management and Budget, the supplemental requests that the administration puts forward to the Hill when they are necessary. Clearly, additional resources were needed [last fall], and the Office of Management and Budget supported the President in putting forward those requests that Congress considered and obviously responded to in providing the resources necessary.''

Since Director Cordray's departure, I know some of my colleagues on the other side of the aisle have been frustrated by the Bureau under Acting Director Mulvaney's leadership. Given changes at the Agency over the last year and frustration felt on both sides of the aisle, now is an appropriate time to reconsider the fundamental structure of the Bureau to increase its accountability and transparency.

I continue to support a bipartisan commission instead of a single Director, a congressional funding mechanism, and a safety and soundness check. It would also be appropriate to give the Bureau its own inspector general.

For the past year, the Bureau has been led by an Acting Director. It is time for the Senate to confirm a permanent Director. I support Ms. Kraninger, and I urge my colleagues to join me in voting yes on her nomination.

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