During a Senate Banking, Housing and Urban Affairs Committee hearing, Jonathan McKernan, nominated by President Donald Trump to head the Consumer Financial Protection Bureau (CFPB), faced intense scrutiny from Democratic senators. The session took place on February 27, 2025, on Capitol Hill, Washington, D.C.
Senator Elizabeth Warren from Massachusetts spearheaded the questioning, pressing McKernan, who previously served on the Federal Deposit Insurance Corporation board, to assure the committee that he would uphold his duty to enforce consumer protection laws. McKernan emphasized his commitment, stating, “I will fully and faithfully enforce the laws related to the CFPB.”
Reflecting on his career, which began during the 2008 financial crisis, McKernan expressed a strong belief in the necessity of a regulatory system that serves everyday Americans, highlighting the importance of consumer protection.
However, McKernan voiced concerns about the agency’s past operations under Rohit Chopra’s leadership. In his initial remarks, he critiqued the CFPB for acting politically, overstepping legal limits, unintentionally harming consumers by driving up prices, and experiencing a legitimacy crisis. McKernan stated, “This must be corrected if the CFPB is to fulfill its role of protecting American consumers.”
With Russell Vought recently stepping in as acting CFPB Director, the agency has closed its Washington office, laid off around 200 employees, and halted most operations, stirring apprehension about its potential dissolution. The CFPB also dropped several lawsuits, including cases against Capital One and a Berkshire Hathaway subsidiary.
Senator Warren sought McKernan’s assurance on maintaining mandated components of the CFPB, such as its consumer complaint platform and its advocacy offices for veterans and seniors. McKernan responded affirmatively, assuring, “Yes, I’ll follow the law.”
Senator Warren, highlighting potential threats to the bureau’s future, expressed skepticism about McKernan’s effectiveness in the role, likening it to being positioned “as the No. 1 horse at the glue factory.”
McKernan pledged to restructure and refocus the CFPB, striving for greater accountability should he be confirmed by the Senate.
Senator Jack Reed from Rhode Island added to the pressure, noting Vought’s termination of the agency’s headquarters lease and the dismissal of cases against predatory lenders. Reed also cited reports that both Trump and Vought seek the bureau’s elimination, remarking, “You’re going to be placed in a very difficult position. Good luck.”
McKernan, maintaining composure, responded only with a rueful smile and a nod, leaving much left unsaid in the tense atmosphere of the hearing.
