Gov’t Appeals Ruling Reinstating Fired NCUA Board Members; Questions Over Board Meeting

WASHINGTON–As expected, the Trump Administration moved quickly to file an appeal and motion that seeks to stay a judge’s order that former NCUA board members Todd Harper and Tonya Otsuka be returned to their positions.

Harper and Otsuka, both Democrats, were fired by President Trump in mid-April, leaving just one member of the NCUA board, Chairman Kyle Hauptman, a Republican appointee.

Brandy Bruyere

As the CU Daily reported extensively here, in a 27-page ruling, Judge Amir Ali of the United States District Court for the District of Columbia found the firings violate the Federal Credit Union Act and ordered that Harper and Otsuka be given their jobs back.

The government’s response—which is similar to that it filed in a case involving an FTC commissioner who was also fired and who also won her case for reinstatement— means it’s highly unlikely Harper and/or Otsuka will be on hand for the NCUA board’s scheduled meeting on Thursday at 10 a.m. at its Alexandria, Va. headquarters.

Noon Deadline

However, Brandy Bruyere, regulatory compliance attorney, Consumer Financial Services & Credit Unions + Partner at Honigman, LLP, pointed out the District Court issued a minute order noting that the government did not mention tomorrow’s NCUA board meeting in its stay request, so Harper/Otsuka were given until noon tomorrow to respond to the motion for stay.

Ultimately, said Bruyere, it is ultimately going to be up to the Supreme Court and whether it chooses to hear the NCUA case and the FTC case.

Senator Expresses Support

Separately, Sen. Elizabeth Warren (D-MA) said in response to the ruling, “The court’s decision to reinstate the illegally fired Board Members of the NCUA is a win for credit unions, consumers, and our economy. We will keep fighting to make sure the agency can do its job for the American people — and fighting back against the Trump Administration’s lawless actions.”

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