[Congressional Record Volume 164, Number 188 (Thursday, November 29, 2018)]
[Senate]
[Pages S7209-S7210]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Nomination of Kathy Kraninger
Ms. WARREN. Madam President, 10 years ago, greedy financial
institutes crashed our economy and crushed working families all across
this country. Millions of Americans lost their jobs, millions lost
their homes, and millions lost their life savings. That crisis was no
accident, and it was no act of God. It was caused because Washington
looked the other way while greedy Wall Street bankers scammed hard-
working American families. It can happen again if we let it.
If we learned anything from the financial crisis that nearly drove
our economy over a cliff, it is that American families desperately need
a strong consumer watchdog. Before the crisis, financial institutions
sold consumers predatory loans that were like grenades with their pins
pulled out. When they exploded, they wiped out trillions of dollars of
wealth and caused millions of people to lose their jobs, their savings,
or their homes.
The Consumer Financial Protection Bureau was created to level the
playing field for consumers and make sure that Washington never again
looks the other way while millions of families get squeezed.
On June 18, 2018, President Donald Trump announced his intent to
nominate Kathleen Kraninger as Director of the CFPB. Ms. Kraninger is a
political appointee at OMB who has spent more than a decade working on
homeland security policy in the executive branch and on Capitol Hill.
She has never--I repeat, never--worked on consumer protection issues
either in public service or in the private sector. She has zero track
record of standing up for consumers.
The White House championed Ms. Kraninger's experience as a manager
when announcing her nomination. A White House official stated that Ms.
Kraninger ``will bring . . . much-needed management experience [to the
CFPB].'' A quick search on Google shows that is bogus.
Ms. Kraninger's tenure at OMB has been marred by systemic management
failures. As an OMB official with primary responsibility over the
Departments of Justice and Homeland Security, Ms. Kraninger was one of
the officials responsible for managing and implementing President
Trump's zero-tolerance policy. The policy resulted in a humanitarian
catastrophe in which thousands of children were ripped from the arms of
their mamas and daddies and thrown into cages.
Ms. Kraninger bungled the response to the three catastrophic
hurricanes of 2017. Under Ms. Kraninger's leadership, OMB's budget
requests in the wake of Hurricanes Irma, Maria, and Harvey were too
little, too late.
Ms. Kraninger oversaw a budget that, if enacted, would have
exacerbated, rather than alleviated, the Nation's affordable housing
crisis.
No, it isn't Ms. Kraninger's management experience that got her a
giant promotion; it is her enthusiasm for Mick Mulvaney's anti-consumer
agenda that earned her this reward from President Trump. How do I know
that? I asked Ms. Kraninger if she disagreed with one single action
that Mr. Mulvaney took during the year he controlled the CFPB. She
said: ``I cannot identify any actions that Acting Director Mulvaney has
taken with which I disagree.'' Not a single one. That means she agrees
with Mick Mulvaney's decision to drop a lawsuit against payday lenders
who were charging vulnerable buyers 900 percent interest. She agrees
with Mick
[[Page S7210]]
Mulvaney's decision to gut CFPB's office that fights lending
discrimination, which was designed to make sure communities of color
aren't targeted with the most abusive loans, as they were before the
financial crisis. She agrees with Mick Mulvaney's decision to stop
checks that ensure that banks don't charge our military sky-high
interest rates. She agrees with Mick Mulvaney's decision to censor
reports to Congress and give student loan companies a free pass when
they rip off students. She agrees with Mick Mulvaney's decision to load
up the CFPB with more than a dozen political appointees to muzzle the
CFPB's professional staff and keep them from doing their job. It is
hard to imagine a stronger indication that Ms. Kraninger intends to
continue Mr. Mulvaney's harmful trajectory of weakening CFPB to benefit
big financial institutions at the expense of consumers.
Ms. Kraninger has absolutely no experience in consumer finance
whatsoever, but she has been nominated to head up the Consumer
Financial Protection Bureau because she is passionately committed to
keeping it from leveling the playing field for working families. No
thanks.
We have a lot of hard decisions to make in this body, but this one is
a no-brainer. Hard-working American families deserve a fighter as the
Director of the CFPB. When the CFPB fights for consumers, students can
manage their loans. When the CFPB fights for consumers, servicemembers
can serve their country without worrying that their families will be
crushed by debt. When the CFPB fights for consumers, seniors can retire
with dignity. When the CFPB fights for consumers, 29 million families
get checks for over $12 billion from financial institutions that
cheated them--and that happened in just 6 years.
Working families need a CFPB Director who is a fighter with a proven
track record of making the consumer marketplace safe and aggressively
pursuing companies that cheat their customers. Kathleen Kraninger is
not that person. Let's do our job. Let's reject this nominee.
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