Lobby of the NCUA.
U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, and Congresswoman Maxine Waters (D-Calif.), Ranking Member of the House Financial Services Committee, have called for an investigation into the NCUA Board's operations after the recent dismissal of two of its three members by President Donald Trump.
In a letter addressed to NCUA Inspector General James Hagen, the lawmakers expressed deep concern over the firings of Todd Harper and Tanya Otsuka, both Democrats appointed to the NCUA Board. The letter stated, "These firings are part of the President’s concerning attempts to skirt the rule of law, undermine independent agencies and illegally purge the government of those who work for the American people." The letter emphasized that such actions could "paralyze the Board, create unnecessary legal risk for the agency, and harm the stability of our nation’s credit union system."
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CU Times reached out to Hagen and his office for comment, but did not receive a response.
The lawmakers requested the Inspector General assess the NCUA's capacity to function effectively with only one board member, Chairman Kyle Hauptman, and investigate the Chairman's authority to continue full agency operations under these circumstances.
Harper and Otsuka have filed a lawsuit against the Trump administration, alleging that their terminations were unlawful. The lawsuit contended that NCUA Board members can only be removed "for cause," as stipulated by the Federal Credit Union Act, and that their dismissals lacked such justification. The complaint seeks reinstatement for both officials and challenges the legality of any actions taken by the NCUA Board in the absence of a quorum.
In their statements Monday, Harper and Otsuka underscored the importance of maintaining the NCUA's independence. Harper remarked, "Credit union members need a strong, independent watchdog," while Otsuka warned that weakening financial regulators like the NCUA "puts people’s money at risk and makes it harder and more expensive to pay your bills, start a new business, or buy a home."
The firings have drawn some criticism from various corners of Washington, D.C., with concerns that such actions threaten the independence of all federal financial regulators.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
