News: Sen. Elizabeth Warren (D-Mass.) will ask the Trump administration nominee to lead the Consumer Financial Protection Bureau whether he’d refuse “any unlawful directives” from the White House and if the agency could operate with only 100 employees, according to a letter reviewed by Punchbowl News.
Jonathan McKernan appears before the Senate Banking Committee on Thursday as the White House’s pick to lead the CFPB full-time. With much of the agency’s operations still suspended, we expect McKernan to get the brunt of lawmaker attention – especially from Democrats – as he testifies alongside fellow economic nominees Bill Pulte, Stephen Miran and Jeffrey Kessler.
Warren’s letter, which you can read here, includes questions she wants McKernan to be prepared to answer and is just one part of a broader defense the Massachusetts Democrat is revving up this morning. Warren is leading a separate “forum” later today in defense of the CFPB.
Homework: Warren’s letter poses nearly 70 questions to McKernan, who until recently served on the board of the Federal Deposit Insurance Corporation. The first question is whether McKernan agrees “with President Trump that the CFPB is an ‘important thing to get rid of.’”
Otherwise, the questions cover the gamut of policy and political concerns. Warren asks McKernan to review “all positions” slated for layoffs at the consumer watchdog – an ongoing worry – and whether he plans to coordinate with the White House on final rules, enforcement activities, funding and staffing.
The Massachusetts progressive also spends time laying out the many conflicts of interest currently swirling around mega-billionaire Elon Musk as the Tesla CEO publicly revels in the destruction of the CFPB. Warren asks McKernan to ensure that “all federal officials engaged in decision-making involving the CFPB are in compliance with all relevant federal ethics laws, regulations, and norms.”
Examination and supervision is also a focus. Warren asks the CFPB nominee whether he’s “concerned” about the halt in consumer compliance exams ordered by current acting Director Russ Vought.
Don’t call it a hearing: Warren will also convene a “forum” of senators at 2 p.m. to rally to the CFPB’s aid and stress the consequences of the agency’s shutdown. Witnesses include Massachusetts Attorney General Andrea Campbell, former CFPB Director of Supervision Policy Lorelei Salas and other folks who will attest to the CFPB’s usefulness. Musk was also invited.
Democrats have a factsheet you can study up on here. The doc lists several CFPB investigations that have been frozen as a result of the work stoppage, including an inquiry into whether Capital One shortchanged its borrowers out of more than $2 billion in interest payments.
