On April 29, Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) sent a letter to the Inspector General of the NCUA to request an investigation into the agency’s ability to operate with a single board member. The letter urged the NCUA Office of Inspector General to examine the legality of actions taken by the NCUA since the firings and assess the impact on the agency’s independence and ability to effectively charter, supervise and insure deposits at credit unions.
As previously covered by InfoBytes, President Trump fired two of the three NCUA Board members, Todd Harper and Tanya Otsuka, leaving only one Board member to manage the agency. The congressional letter raised concerns about the NCUA’s capacity to fulfill its mission and comply with quorum requirements for decision-making purposes. The congressional members also requested detailed documentation and analysis regarding the firings and their implications for the NCUA’s governance.
A day before, Todd Harper and Tanya Otsuka filed a complaint in the U.S. District Court for the District of Columbia to challenge their removals. The plaintiffs alleged their terminations were unlawful as these occurred without cause and violated the statutory protections designed to ensure the independence of the NCUA Board (covered by InfoBytes here).
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