Trump's Pick to Lead Gutted Consumer Agency Is 'Gift to Big Banks': Watchdog

The government watchdog Accountable.US said Wednesday that Americans need look no further than comments from a top trade association for big banks to know that President Donald Trump's pick to lead the Consumer Financial Protection Bureau won't provide them with the financial help Trump promised during his campaign.

The Consumer Bankers Association (CBA), which represents Wall Street banks including Citibank and Barclays, said that if former Federal Deposit Insurance Corporation (FDIC) board member Jonathan McKernan is confirmed, it looks forward to "working with Mr. McKernan to undo many of the most recent actions" by the CFPB when it was run by Rohit Chopra, an appointee of former President Joe Biden.

Under Chopra's leadership, the CFPB unveiled regulations to protect consumers against overdraft fees and cap credit card late fees at $8 instead of $30, and expanded a measure to protect people from discrimination by corporations.

All of those actions have been subject to litigation by the CBA, noted Accountable.US.

"The actions the CBA seems to be so concerned about are the ones putting money back into the wallets of Americans, and protecting them from predatory bank practices," said the group.

At the FDIC, McKernan pushed for the quick approval of bank mergers and voted against a measure to increase scrutiny of mergers that create bankers with more than $100 billion.

"By firing career CFPB employees, ceasing the agency's operations, and nominating the big bank's de facto choice for CFPB director, Trump again reneges on his campaign promise to look out for working people and lower their costs."

McKernan was named as Chopra's successor as the CFPB—which is currently being temporarily led by Office of Management and Budget director Russell Vought—fired 70 probationary employees, including attorneys in the agency's enforcement division.

McKernan said after resigning from the FDIC this week that he hopes the agency reverses "the regulatory overreaches of the last few years."

Progressive advocates and Democratic lawmakers have condemned attacks on the CFPB by the Department of Government Efficiency (DOGE), which is being run by billionaire Trump backer Elon Musk. Sen. Elizabeth Warren (D-Mass.), who originally proposed the creation of the CFPB, is among those who have noted that the agency has returned more than $21 billion to working people across the U.S. who have been overcharged and scammed by banks and other financial companies.

"McKernan is a gift to big banks and special interests that would like nothing more than to see the CFPB gutted," said Accountable.US executive director Tony Carrk. "Banks see a McKernan CFPB as a rubber stamp for their interest in undoing the essential actions CFPB has taken to put more money in the pockets of consumers and protect them from predatory bank practices. By firing career CFPB employees, ceasing the agency's operations, and nominating the big bank's de facto choice for CFPB director, Trump again reneges on his campaign promise to look out for working people and lower their costs—all in service of himself and his billionaire donors."