WASHINGTON—The U.S. Court of Appeals for the D.C. Circuit has granted the Justice Department’s emergency motion to bar fired NCUA Board Members Todd Harper and Tanya Otsuka from returning to the NCUA board while their appeal is pending.
The ruling lifts the temporary stay issued last month, and in its place, now, is the formal stay, pending appeal.
Harper commented on the ruling.
“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,” said Harper 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,” continued Harper. “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,” added Harper. “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.”