Thread by @H_Lev

I'm on the hill today for House Financial Services Committee's first hearing overseeing Wall Street watchdog CFPB, now led by Kathy Kraninger, who took over late last year from Trump-appointed Mick Mulvaney.

First line of questions from Chairwoman Waters is about the CFPB office in charge of weeding out lending discrimination, and which won some of the bureau's biggest victories for consumers. Mulvaney stripped the office of enforcement powers: bit.ly/2nxlhUy

Rep. Waters asked Kraninger if she thinks fair lending enforcement was weakened by this change. Kraninger says she does not: "The mission of fair lending has been enhanced by the reorganization."

In Sept, @washingtonpost reported that the new Trump political appointee in charge of fair lending once wrote racist blog posts. Rep. Waters asks Kraninger if she's aware of this. Kraninger punts: says she's read the press, but it was b4 she took over CFPB wapo.st/2NMbcyI

@washingtonpost Which brings me to another point: @FSCDems asked Kraninger's predecessor, Mick Mulvaney (now Trump chief of staff), to testify today as well, since Kraninger has only been director a few months, and this is meant to be semi-annual review of the CFPB's work. Mulvaney declined.

Rep. Meeks now asking Kraninger about why about 10 percent of CFPB career staff have left the bureau due to "low morale." She says federal agency turnover is normal.

Rep. Clay asks Kraninger how many lawyers and examiners are working on lending discrimination protection currently at the CFPB. Kraninger hedges, says she will check and get back to the committee.

We interrupt this thread of consumer protection wonkiness to note that Rep. Rashida Tlaib's son is here and just gave his mom a giant smile and thumbs up. It was very sweet.

Rep. Williams of TX opens his line of questioning by asking Kraninger if she is a capitalist or a socialist, in what seems to be a continuation of the GOP's @AOC mania/misrepresentation of her politics. Kraninger replies that she is a capitalist.

Rep. Williams also notes that the CFPB is often known as "Elizabeth Warren's brainchild." Says that's a bad moniker to have if it wants to "be taken seriously."

Rep. Beatty asks Kraninger if she's heard of the "Mulvaney discount"—drastic reductions in fines for corporate offenders. She says she's "heard the term." Beatty asks if she plans to continue the practice, Kraninger doesn't answer explicitly—says all settlements are negotiated.

Also very impassioned questioning from Rep. Heck just now about the CFPB's decision (under Mulvaney) to stop examining financial firms for compliance with the MLA—the law protecting military members from lending misconduct.

.@katieporteroc, a consumer law professor, is now up and bringing fire. She asks Kraninger what the difference is btwn an interest rate and an APR. Kraninger gets it wrong, so Rep. Porter holds up a copy of a book: "I would be happy to send you a copy of the textbook I wrote."

@katieporteroc Rep. Porter then gives Kraninger a math problem testing how to calculate APR. "You might want to write this down," says Porter while rattling off numbers. And later: "If you'd like a calculator, we can get you one."

As we approach hour 4 of this hearing, Rep. Mooney of West Virginia opens his questioning by noting he believes the CFPB should not exist.

Then proceeds to talk about how some members of Congress are socialists.

Also adds: "Dodd Frank was a mistake"