Trump Nominates New CFPB Head On Heels Of Probationary Employee Terminations

ByTMN Editor Reading Time: 2 minutes

The Trump administration has nominated Jonathan McKernan for director of the Consumer Financial Protection Bureau.

If confirmed, McKernan, a former board member at the Federal Deposit Insurance Corporation, would head the CFPB over a five-year term. He previously served as senior counsel at the Federal Housing Finance Agency and as an aide to former Tennesee Senator Bob Corker.

The move comes amid a takedown of the bureau directed by Elon Musk and Trump. Members of Musk’s DOGE department have administrative access to CFPB systems, including content management, its website’s back-end, and personnel files.

Russell Vought, Trump’s director of the Office of Management and Budget, directed employees last weekend to stop working on new and unfinalized rules, as well as halt any investigations.

It also converges with the firing of dozens of probationary CFPB employees Tuesday night. Several of the impacted employees are weighing legal action in response.

“We believe this was an illegal firing and we are prepared to take action against it. All we want is to get back to work protecting American consumers and ensure markets for consumer financial products are fair, transparent, and competitive,” Jasmine Hardy, EVP for NTEU Chapter 335, on CFPB Terminations, told NPR.

But analysts say the decision to nominate McKernan suggests Trump’s administration wants to control, not destroy, the bureau.

“The nomination of McKernan indicates an interest in having the agency continue to function, albeit in a much more limited capacity,” Andrew Glass, a partner in the consumer financial services practice with law firm K&L Gates, told Roll Call.

MBA President and CEO Bob Broeksmit applauded the nomination.

“His deep experience as a regulator, in private practice, and on Capitol Hill – coupled with his background working on housing policy – make him a strong choice to lead the CFPB’s new direction under the Trump administration,” Broeksmit said in a statement.

Congress created the CFPB under former President Barack Obama as a response to the subprime lending crisis of 2008, meaning no one but Congress can shut down the bureau altogether.

Under former director Rohit Chopra, the CFPB stepped up its enforcement practices in the last three years. Chopra zeroed in on housing, especially foreclosures and refinances, during his tenure.