Kyle Hauptman, President Trump’s choice to join the National Credit Union Administration board, hates Dodd-Frank.
He has made that clear repeatedly.
That could cause some friction between Hauptman and Democratic board member Todd Harper and his policy advisor, Catherine Galicia, both of whom worked on Dodd-Frank when Congress passed it.
“Dodd-Frank was sold to Americans as consumer protection legislation that would rein in risk-taking by large financial institutions,” Hauptman wrote in an op-ed in The Hill in April 2016. “But what’s really happened is that ordinary Americans, aspiring entrepreneurs, and community banks have suffered. They are the collateral damage of yet another effort by Washington to ‘help.’”
And he particularly dislikes the Consumer Financial Protection Bureau. “The CFPB isn’t accountable, and it behaves accordingly,” he wrote in The Hill in 2016.
As a staffer on the Senate Banking Committee, Galicia helped write the section of Dodd-Frank that included the CFPB. She then went on to direct legislative affairs under former CFPB Director Richard Cordray, an advocate of strict regulations.
Harper helped work on Dodd-Frank on the House side, serving as legislative director for former Rep. Paul Kanjorski (D-Pa.) and as staff director of the House Capital Markets, Insurance and Government Sponsored Enterprises Subcommittee.
Hauptman, on the other hand, has spent years fighting what Harper and Galicia helped enact.
Trump announced Hauptman’s nomination Monday. If confirmed, he would replace Republican J. Mark McWatters on the board.
Hauptman is Sen. Tom Cotton’s (R-Ark.) economic policy advisor and staff director of the Senate’s Economic Policy Subcommittee. He served as a member of President Trump’s transition team, focusing on the CFPB and the Financial Stability Oversight Council.
Before that, he served as executive director for the Main Street Growth Project from 2015 to 2017. Here is how Hauptman’s LinkedIn page describes that group: “Main Street Growth Project is an advocacy group focused on protecting everyday Americans and small businesses from becoming caught in the crossfire in the effort to ‘reform Wall Street.’” We’re here to defend the small businesses and their employees, those who aren’t doing as well as the big firms in the current two-track recovery.”
Hauptman also served two years on the staff of the National Republican Senatorial Committee, the campaign arm for Senate Republicans. His profile states that he drafted economic policy briefings and talking points for Republican Senate candidates during the 2014 and 2016 campaign cycles. Before that, he served on Sen. Mitt Romney’s (D-Utah) presidential campaign staff, writing financial regulation briefing papers.
From 2004 to 2008, Hauptman was a vice president for fixed income trading at Lehman Brothers, the financial services company that helped fuel the 2008 economic collapse.
In a 2016 article on Real Clear Markets, Hauptman recounts having worked at Lehman at the time of its collapse. “I was working at Lehman back then and lost my job, my work visa, and all of my Lehman stock (our pay included stock which had a 5-year vesting period, and I worked there for 4.5 years. Good times),” he wrote. “Obviously, I don’t expect anyone to feel bad for a well-paid bond trader, but you’re picking up what I’m putting down.”
He goes on to say that the federal government has not learned the lessons of that collapse and takes aim at Dodd-Frank, with a particular focus on its impact on community banks.
“Complying with endless pages of regulations that have been issued – and remain to be released – requires considerable time and money, things that small banks have less of than their bigger brethren,” he wrote in The Hill. He writes that Dodd-Frank caused small banks to rein in their lending—hurting small business.
“The takeaway for Washington is simple: You hurt local banks, you hurt small business,” he concluded. And, if you hurt small business, you hurt America.”
He summed up his position, writing, “Everyone agrees that the pre-crisis financial system needed major surgery, but Dodd-Frank just made D.C. regulators, lawyers, and lobbyists more powerful. You can support Dodd-Frank or Main Street, but not both.”