On February 11, President Donald Trump nominated Jonathan McKernan to be the new Director of the Consumer Financial Protection Bureau (CFPB or Bureau). If confirmed by the Senate, McKernan will replace Acting CFPB Director Russell Vought, who also serves as the head of the Office of Management and Budget. McKernan was reportedly on the Trump administration’s short list of potential candidates to lead the CFPB and is considered an ally of the financial services industry.

On February 10, McKernan resigned from his position on the Federal Deposit Insurance Corporation (FDIC) board after President Trump nominated Rodney Hood, Acting OCC Comptroller, who then became an FDIC board member. In a post on X, McKernan said that if Hood is confirmed, “we would have more Republicans on the Board than permitted by law.” Under federal law, no more than three members of the FDIC board may be members of the same party. The next day, President Trump nominated McKernan as CFPB Director.

McKernan’s background includes roles as Senior Counsel at the Federal Housing Finance Agency, senior policy advisor at the Treasury Department, and as an aide to former Senator Bob Corker (R-TN) and former Senate Banking Committee ranking member Senator Pat Toomey (R-PA). His tenure at the FDIC was marked by his strong opposition to Basel III endgame capital rules and his co-leadership of a special committee investigating workplace misconduct at the agency and pushing for reforms.

McKernan’s nomination to become Director of the CFPB is part of a larger strategy by the Trump administration to reverse many of the regulatory policies implemented during the Biden era. The administration, under the interim leadership of Treasury Secretary Scott Bessent and then Acting CFPB Director Vought, has already taken steps to substantially curtail the CFPB’s activities, including halting rulemakings, examinations, supervision, investigations, and enforcement actions.

In a related development, the CFPB’s supervision director, Lorelei Salas, and enforcement director, Eric Halperin, announced their resignations on February 11. This follows directives from Acting Director Vought to cease all work at the Bureau. It has been reported that Salas and Halperin cited these directives as the reason for their resignations.

Our Take

As McKernan’s confirmation process unfolds, we will continue to monitor developments and provide updates on the implications for the CFPB. The future of the Bureau remains uncertain, but one thing is clear: the CFPB is poised for another period of transformation under new leadership.