WASHINGTON–The D.C. Circuit Appeals Court has ruled in favor of the federal government’s motion to stay a decision that would have allowed fired NCUA board members Todd Harper and Tanya Otsuka to return to the panel.
Harper and Otsuka were fired by President Trump in mid-April. They filed suit seeking to be reinstated, arguing the Federal Credit Union Act does not permit NCUA board members to be removed. The duo was temporarily returned to the NCUA board in time for its July board meeting, before the Justice Department prevailed upon the court to issue an emergency stay of that decision. That stay has now been upheld.
Harper Issues Statement
“Yesterday’s decision by a D.C. Circuit appeals panel to grant the government’s stay motion is disappointing as the continued lack of a quorum leaves the agency in limbo on many important decisions,” Harper said in a statement. “That said, the court also set a fairly expeditious briefing schedule for considering the appeal.
“As noted in our legal filings, the tradition of maintaining the independence of financial regulators pre-dates the U.S. Constitution, goes back to the early days of our republic, and is vital for maintaining the public’s trust that their financial institution of choice operates safely and soundly, their consumer rights remain fully protected, and their insured share deposits are safeguarded,” Harper continued. “Therefore, I remain hopeful that the appeals panel will ultimately issue a favorable ruling for us on the merits.
“Moreover, I look forward to the court acting as soon as possible so that Tanya Otsuka and I can return to the NCUA Board and complete important work on matters like setting the interest-rate ceiling for federal credit unions before it expires, considering the approval of multi-billion-dollar mergers, establishing an appropriate Normal Operating Level for the Share Insurance Fund given the recent agency downsizing, and finalizing the agency’s next strategic plan,” Haper stated. “Without an NCUA Board quorum of at least two members, all of these issues lack the Board majority needed to be properly considered under the law.”
Waiting on Supreme Court
It is expected the case filed by the NCUA board members will either make it all the way to the Supreme Court, or that a separate ruling by the Supreme Court in a related case will become the precedent.
