Consumer Financial Protection Bureau Director Kathy Kraninger announced on Wednesday that she was stepping down from her post at the behest of President Joe Biden’s administration.
“As requested by the Biden administration, I have today resigned as director of the CFPB,” Kraninger said. “I am proud of everything we have accomplished on behalf of consumers. It has been an honor to lead the agency in these difficult times. “
In a letter to the president, Kraninger said she would step down as of January 20, 2021. She said she supported the president’s constitutional prerogative to appoint senior officials in government who support the president’s political priorities. She said this will ensure that the government is responsive to the will of the people as expressed in the presidential elections.
It comes after Biden appointed FTC Commissioner Rohit Chopra as next CFPB director.
This is because in 2020 the Supreme Court decision in The Seila law against the CFPB declared the CFPB unconstitutional under its leadership structure, claiming it violated the constitutional separation of powers by placing the agency’s leadership in the hands of a single director who could only be removed for cause valid. The court declared the director revocable at will by the president.
But now Kraninger’s decision to step down from his role ends it all speculation that Republicans could challenge Biden’s right to fire CFPB director Kathy Kraninger, and also appoint a new director to that post.
In a recent Mortgage Office Segment by HousingWire Daily, Mayer brown Partner Ori Lev explained that the clause that allows the president to appoint the next CFPB director could be challenged if the director is fired.
“It has been an honor to serve the American people for over 20 years, and my privilege to do so alongside the many career public officials and politicians who put the country ahead of themselves,” Kraninger said in the letter. “As I testified in my confirmation of charge hearing, throughout my career I have focused on implementing common sense solutions to complex problems and creating real value. for the American people. “
“Over the past two years, this is precisely what I have done – with the law as my guide, with the support of the dedicated CFPB staff and in partnership with the many stakeholders who join the mission of the office.” to ensure that all consumers have access to markets for consumer financial products and services… which are fair, transparent and competitive, ”she said.