Former CFPB Director Joins Fervent Anti-Credit Union Group
Kathy Kraninger has joined the advisory board of Friends of Traditional Banking
Former Consumer Financial Protection Bureau Director Kathleen Kraninger has joined the advisory committee at Friends of Traditional Banking, a fervent anti-credit union super Political Action Committee.
Kraninger, who served as CFPB director during the Trump Administration and resigned when President Biden took office, was appointed CEO of the Florida Bankers Association last Fall. She joined the super PAC’s board after joining the Florida banking trade group.
Friends of Traditional Banking is not a traditional PAC. Instead, as a super PAC, it generally endorses two or three members of the House or Senate each election year and encourages bankers to contribute to the campaigns of those members. In 2022, the group endorsed three candidates. They were Sen. Ron Johnson, R-Wis. and Rep. Randy Feenstra, R-Iowa, who were running for reelection and Rep. Ted Budd, R-N.C., who was running for the Senate. All three candidates won. The group has not endorsed any candidates for 2024 yet.
In announcing her appointment to the advisory committee, the group said, “Appointed by four Presidents to government posts and confirmed by the U.S. Senate, Kraninger has been a trusted counselor and advisor to cabinet members and members of Congress of both parties for decades – focused on problem solving over politics and outcomes over credit.”
The super PAC she is joining often has been highly critical of credit unions. Friends of Traditional Bankers describes itself as “a non-partisan grassroots effort, organized by bankers. We are Main Street, not Wall Street; we are traditional community bankers, not investment bankers.”
On its website, Friends of Traditional Banking also states that the group “has long opposed fake credit unions, which are surging well beyond the role of traditional credit unions and harming communities by avoiding taxes. These financial institutions create an uneven playing field for traditional banks and real community credit unions.”
While she was at the CFPB, Kraninger did not adopt policies that were blatantly anti-credit union. She issued guidance and rules that were supported by banking and credit union trade groups. In 2020, Kraninger explained her philosophy to the Senate Banking Committee, saying that she favored, “rules that promote competition, increase transparency, and preserve fair markets for financial products and services.”