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CFPB's Kraninger resigns when Biden takes workplace

Kathy Kraninger, director of the Bureau of Consumer Financial Protection, resigned Wednesday, paving the way for the Biden administration to select a successor.

Kranninger's decision to resign with the change of power in Washington was widely expected. Although her term would not have officially ended until 2023, many of her Trump administration-backed actions had upset the Democrats.

After the Supreme Court ruled last year that a president could fire a CFPB chief at will, many speculated that if she hadn't gone alone, President Biden would have forced her. She resigned the same day that Biden was initiated.

"I support the president's constitutional prerogative to appoint senior officials within the government who support the president's political priorities, thereby ensuring that our government responds to the will of the people expressed in the presidential election," Kraninger wrote in one Letter to the staff.

"I support the president's constitutional prerogative to appoint senior officials within the government who support the president's political priorities, thereby ensuring that our government responds to the will of the people expressed in the presidential election," said the former CFPB -Director Kathy Kraninger.

Bloomberg news

However, it was not immediately clear whether the Biden government had named an acting director as Biden's candidate for permanent director Rohit Chopra, pending Senate confirmation. The assistant director Tom Pahl had retired on January 19th. Office number 2 is typically appointed acting director during a managerial position.

Kraninger, a career civil servant, highlighted some of her accomplishments in the office and said she had been guided by the rule of law for the past two years.

"It has been an honor to serve the American people for over 20 years and my privilege to do so alongside the many career and political officials who rank the country above itself," wrote Kraninger. "During my career, I've focused on implementing sensible solutions to complex problems and creating real value for the American people."

Under Kraninger, the CFPB issued final regulations on Payday Loans, Collections, and Home Mortgage Disclosure Act dates.

She also hoped her legacy would be "the maturation of the CFPB itself and its role in regulating financial services".

An acting director may be selected from any of the senior CFPB officials who have been with the CFPB for at least 90 days, or officials who have already been approved by the Senate for an existing position.

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