During a Senate hearing on Thursday, President Donald Trump’s nominee to lead the Consumer Financial Protection Bureau (CFPB), Jonathan McKernan, faced intense questioning from Democratic senators. They repeatedly asked him to commit to upholding the legal obligations tied to running the agency. McKernan, a former Federal Deposit Insurance Corporation board member, assured lawmakers that he would “fully and faithfully” enforce laws related to the CFPB’s mission. He emphasized the importance of consumer protection, citing the 2008 financial crisis as a pivotal moment in shaping his views. However, McKernan criticized the agency’s previous leadership under Rohit Chopra, accusing it of acting in a politicized manner and exceeding its legal authority. Since Acting Director Russell Vought took over this month, the CFPB has closed its Washington headquarters, laid off about 200 employees, and halted nearly all operations, raising concerns about the agency’s future. Senator Elizabeth Warren pressed McKernan on whether he would maintain statutory requirements, including a consumer complaint website and advocacy offices for veterans and seniors. Despite McKernan’s assurances, skepticism remained, with Senator Jack Reed likening the situation to being on the Titanic. McKernan responded by saying he would “right-size” and “refocus” the agency if confirmed. — news from CNBC
