Jonathan McCernan, whose candidate for US President Donald Trump, becomes director of the Consumer Financial Protection Agency, is sitting on February 27, 2025, testifying at a confirmation hearing of the Senate Bank, Housing and Urban Affairs Committee in Capitol Hill, Washington, D.C.
Annabelle Gordon | Reuters
President Donald Trump’s choice to lead the Consumer Financial Protection Agency on Thursday endured a grill from a Democrat senator, who repeatedly asked him to confirm that he supports his legal obligation to run the institution.
In appeal to Senators, including Massachusetts’ Elizabeth Warren, Jonathan McCernan, a former board member of the federal deposit insurance company, told lawmakers he would implement “fully and faithfully” laws related to the CFPB’s mission.
“My legal career began like the 2008 financial crisis began,” McCernan said. “When we see that crisis, we have left us with a lasting belief that there must be a financial regulatory system that will serve everyday Americans. Consumer protection is important for that purpose.”
Still, McCernan revealed that he opposed his predecessor, Rohit Chopra, running the agency. In his opening remarks, he said the CFPB “acted politically” outweighed its legal authority, inadvertently raising prices and hurting consumers, and suffered a “crisis of legitimacy.”
“We need to make corrections to ensure that the CFPB does what it should do. Beware of American consumers,” said McCernan, a former corporate banking lawyer and senator.
Since Russell Vert, acting director of CFPB, took over this month, the agency has closed its Washington headquarters, fired about 200 employees and spoke to those remaining to stop almost every job. These moves, along with allegations from the CFPB union that intends to fire more than 95% of the agency’s staff, prompted fear that the agency is facing extinction.
Earlier on Thursday, the CFPB dismissed at least four enforcement cases. Capital 1 And a Berkshire Hathaway unit.
US Senator Elizabeth Warren (D-MA) will speak at a rally outside the Consumer Financial Protection Agency (CFPB) on February 10, 2025 in Washington, DC.
Anna Moneymaker | Getty Images
Warren pushed McCernan to support the CFPB’s statutory requirements, including having a website and toll-free line for consumer complaints and maintaining an advocacy office for military veterans and seniors.
“Each office you think you mentioned is mandatory by law,” McCernan said. “Yes, I’ll follow the law.”
Warren rattled off the list of public comments and steps made by the Trump administration that showed the bureau could be shut down for good.
“It feels like you’re lined up like you’re one horse in a glue factory,” Warren said.
On his part, McCernan said that if confirmed by the Senate, he would “right-size” the CFPB, “focused” and “hold accountable.”
Sen. Jack Reed, D.-Ri, followed up, adding that Vought canceled the agency’s headquarters lease and dismissed the lawsuit against the “slayer.” Reed also mentioned reports that both Trump and Voat, who are also directors of the Administration and Budget, wanted to eliminate the Bureau.
“You’re going to be in a very difficult position,” Reed said. “You don’t seem to have much of the President’s support or OMB support. I have this sinking feeling that you’re leaving Liverpool on Titanic. Good luck.”
McCernan did not respond verbally to Reid’s comments.
