The National Credit Union Administration (NCUA) has announced the termination of two NCUA Board members, Todd Harper and Tanya Otsuka, whose positions were ended by President Donald J. Trump on April 17. The agency expressed gratitude for their service, noting this alteration in the board's composition.
The departure has raised questions within the credit union industry concerning the effective governance of the NCUA, now down to a single member. Responding to the concerns, the NCUA reassured stakeholders by highlighting historical precedent. They pointed to a similar situation during the Bush Administration when Chairman Dennis Dollar served as the sole board member. "The records are in place at NCUA from 2002 that clearly establish the precedent that the Chairman can act as the Board," Chairman Dollar stated in CU Today.
The NCUA maintains that a single board member can provide a quorum to fulfill their duties. Current Chairman Hauptman, along with NCUA leadership, possesses the authority to continue the agency's operations, including regulatory, supervisory, and insurance functions.
The NCUA emphasized its commitment to safeguarding credit unions and facilitating their prosperity by removing unnecessary regulatory barriers. The agency reinforced its dedication to serving the public by supervising federal credit unions and educating consumers on financial protection.
The NCUA serves as an independent federal agency, managing the National Credit Union Share Insurance Fund, which insures deposits for over 135 million account holders. The agency ensures that it operates with the full backing of the U.S. government's credit and faith.
For further details, Joe Adamoli can be contacted at JAdamoli@ncua.gov or 703.518.6572.