Jonathan McKernan, President Donald Trump’s nominee to lead the Consumer Financial Protection Bureau (CFPB), faced intense scrutiny from Senate Democrats during his confirmation hearing. Lawmakers repeatedly pressed him on whether he would uphold the bureau’s statutory responsibilities.
McKernan Pledges Commitment to CFPB Duties
McKernan, a former board member at the Federal Deposit Insurance Corporation (FDIC), assured senators that he would “fully and faithfully” enforce laws that govern the CFPB. His testimony came amid concerns from progressive lawmakers that he might scale back the agency’s consumer protections.
Senator Elizabeth Warren challenged McKernan to confirm his willingness to maintain the CFPB’s consumer advocacy offices and services, including its website and toll-free complaint line. “Each of the offices… is mandated by statute,” McKernan responded. “Yes, I’ll follow the law.”
Criticism of CFPB’s Previous Leadership
McKernan highlighted his concerns about how the agency was run under previous leadership, specifically criticizing the CFPB for acting in a “politicized manner” and exceeding its legal authority. He argued that such actions inadvertently raised costs for consumers and damaged the bureau’s legitimacy.
“This must be corrected if the CFPB is to reliably serve its purpose: protecting U.S. consumers,” he said.
Ongoing CFPB Controversies
Since Acting Director Russell Vought assumed leadership, the CFPB has made drastic changes, including shutting down its headquarters and terminating approximately 200 employees. Reports indicate that further job cuts may be on the way as part of a broader restructuring effort.
Additionally, the agency recently dropped multiple enforcement lawsuits, including cases involving Capital One and a Berkshire Hathaway subsidiary.
Tough Outlook for the Nominee
Senator Jack Reed expressed skepticism about McKernan’s ability to effectively lead the CFPB, given ongoing efforts by the Trump administration to scale down the agency. “You’re going to be placed in a very difficult position,” Reed remarked. “I have this sinking feeling that you’re departing Liverpool on the Titanic. Good luck.”
McKernan responded only with a subdued smile and nod, acknowledging the challenges ahead.
If confirmed, McKernan has pledged to “right-size” the CFPB, refocusing and holding it accountable while navigating the political and operational turmoil surrounding the agency.
