Jonathan McKernan, recently resigned from FDIC, is nominated to head CFPB

One day after he posted on a social media site that he had resigned his post from one agency board, Jonathan McKernan was nominated by President Donald Trump (R) to a five-year term as head of the Consumer Financial Protection Bureau (CFPB).

If McKernan is confirmed, Office of Management and Budget Director Russell Vought presumably would exit the post, which he holds currently in “acting” capacity.

McKernan, a Republican, resigned from the board of the Federal Deposit Insurance Corp. (FDIC) Board after serving two years. His bio on the FDIC website states he previously served as a counsel to now-former Sen. Pat Toomey (R-Pa.) when he was ranking member on the Senate Banking Committee staff and as a senior financial policy advisor to former Sen. Bob Corker (R-Tenn.); as a senior counsel at the Federal Housing Finance Agency (FHFA); and as a senior policy advisor at Treasury.

Announcing his decision Monday through the social media site X, McKernan wrote: “It has been a great honor to serve on the FDIC Board. It is now time for me to step aside. My term has expired, and with the new Acting Comptroller, we would have more Republicans on the Board than permitted by law….”

Section 2 of the Federal Deposit Insurance Act (FDIA), which governs the FDIC Board, provides that the FDIC Board include five members, of which one must be the Comptroller of the Currency (a post now held by Rodney Hood, in acting capacity); the CFPB director (now Vought, also acting); and three appointed by the president with the advice and consent of the Senate – one of whom must have state bank supervisory experience.

It also states that “not more than 3 of the members of the Board of Directors may be members of the same political party.”

Currently, the FDIC Board has just three members, but all three, now and presumably once McKernan is confirmed, are Republican. If the president chooses to fill the other two seats, he must find Democrats to do so.

McKernan’s nomination, made Tuesday, is noted on the Senate’s website and awaits action of the Senate Banking Committee.