WASHINGTON–During what was at times a tense exchange with some reporters during a press call hosted by America’s Credit Unions,  there was some debate and disagreement over whether the White House committed “regulatory overreach” related to the firing of NCUA board members Todd Harper and Tanya Otsuka by the Trump administration.

America’s Credit Unions’ President and CEO Jim Nussle said he does not believe the firings of the NCUA board members is an example of “regulatory overreach.” 

He pushed back on the suggestion the trade association called previous actions by NCUA and the CFPB examples of regulatory overreach and is refraining from doing so now out of fear over how the Trump administration might respond. 

But Nussle said when he used the phrase previously with prior administrations it was over cases where America’s Credit Unions believed the CFPB, for example, was issuing rulemakings that “clearly exceed the authority that Congress provided to the CFPB.”

No Explicit Statement
“When you look at the Federal Credit Union Act, there is nothing that explicitly states the president cannot remove board members before their terms end, and there’s no clause saying the president may remove a board member for cause or any similar language in the statute,” Nussle said. 

Nussle suggested the question of “overreach” leaves plenty of room for interpretation.  

When asked again by a reporter whether firing 1,500 of the approximately 1,700 employees of the CFPB constituted overreach in his opinion, Nussle said the fact Congress stood up an agency does not mean it is involved in who is employed at the agency.

‘Unusual Scenario’

He called the current situation facing both the CFPB and NCUA—where there are rumors as much as 20% of its workforce will be let go—have created an “unusual” scenario.

“The Dodd Frank Act outlines certain requirements for the CFPB to act on, to oversee, to issue regulations and we expect that this CFPB, whatever it looks like, will carry out those congressionally mandated requirements going forward,” said Ann Petros, VP-policy engagement and credit union operations with America’s Credit Unions.

Petros added that when America’s Credit Unions has used the words “regulatory overreach” in the past it was a reference to actions taken by the heads of agencies it believed went beyond the intent of Congress and was not a reference to the president himself. 

Asked during a media call whether he or DCUC view the firings of the NCUA board members as illegal, Stverak said the organization would not be taking a stance on what are essentially court decisions.

View from Defense Council

Asked during a separate press call whether the Defense CU Council views the firings as overreach, Chief Advocacy Officer Jason Stverak said he believes It’s a  decision for the courts. He said the response is not reflective of reluctance to criticize the Trump administration, as DCUC has expressed its concerns over the nomination of Ken Kies—a critic of the credit union tax deduction—to a role with the Treasury on tax policy.

“We’re not afraid to speak up on behalf of credit unions, with whomever is in power,”  Stverak said.