Press Releases
CFPB Nom McKernan Must Protect the Agency Against Trump, Musk’s Self-Enriching Sabotage
WASHINGTON, DC — Today, the U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a nomination hearing for Jonathan McKernan—an ally of the banking lobby—to be the director of the Consumer Financial Protection Bureau (CFPB), the agency created to protect consumers after the Great Recession from predatory practices by big banks that has put $21 billion back into the pockets of Americans since 2011.
McKernan’s testimony comes amid reports over President Trump, Elon Musk, and other administration officials’ personal financial interests in undermining the CFPB to further enrich themselves at the expense of millions of Americans.
A new review from government watchdog Accountable.US found that McKernan has a history of inconsistent views and an anti-consumer approach to regulation.
The CFPB has returned $21 billion to people who fell victim to abusive and illegal activity. It was born in the aftermath of the Great Recession, which laid bare the unacceptable and predatory practices by big banks to rip off ordinary Americans. And since then, the CFPB has taken critical and long overdue action to protect consumers, and put money back into the pockets of Americans. Put simply: the CFPB is essential. It remains a critical tool to keep Trump, his administration officials, the wealthy, and big business, from exploiting their power and lining their own pockets at our expense. McKernan must commit to upholding the agency’s mission of independence and protecting consumers – not becoming a tool by Trump and Musk to further enrich themselves.”
Accountable.US Executive Director Tony Carrk
Earlier this month, the Trump administration abruptly fired 70 CFPB employees and canceled the lease on the agency’s headquarters, blocking employees’ efforts to put money back into the hands of Americans and protect them from predatory bank practices. Trump has been adamant about his intention to gut the CFPB, opening the door for rampant financial abuse, excessive credit card fees, and possibly his own financial benefit.
WHAT YOU NEED TO KNOW ABOUT MCKERNAN:
He’s a gift from Trump to big banks: McKernan is expected to have a “light” regulatory touch, much to the delight of America’s biggest banks and their industry groups. In February 2025, the Consumer Banking Association (CBA) praised McKernan’s CFPB nomination, stating it “look[ed] forward to working with Mr. McKernan to undo many of the most recent actions by the Chopra CFPB.” The American Bankers Association (ABA) also said, “McKernan’s nomination marks an important turning point for the Bureau.” Some of the key initiatives on the table include the CFPB’s work capping credit card late fees, protecting consumers against excessive and deceiving overdraft fees, and combatting discrimination.
The Chopra CFPB notably strongly enforced and expanded consumer protection laws, including a “crackdown” on overdraft fees and a record-breaking $3.7 billion settlement with Wells Fargo over alleged consumer banking violations.
He’s made claims before Congress that don’t line up with his actions: In his 2022 Federal Deposit Insurance Corporation (FDIC) confirmation hearing, McKernan told Congress he would work to implement long-delayed changes to the Community Reinvestment Act (CRA)—which was enacted to prevent discriminatory red-lining in lending—saying he was committed to “working with the [FDIC] Chair and the staff to make sure that the implementing rule fully achieves that statutory mandate.”
But in 2023, McKernan stated he was “unable to support” the proposed rule revamping the CRA, which had stronger considerations for low- and moderate-income communities. Industry was opposed to the rule, complaining about “‘compliance burdens.’”
Read the full fact sheet.
