“Precedent and standing delegations of authority” are in place to continue performing all operational and statutory requirements with only one board member for the federal credit union regulator, that sole panelist said in a message released publicly late Friday.
However, there may be a question about what regulatory changes, if any, the agency can make under the diminished leadership.
In a message he said was released to National Credit Union Administration (NCUA) staff about the current membership of the agency’s board he chairs, Kyle Hauptman said the termination by President Donald Trump (R) of two of the three members led to speculation about the efficacy of the panel.
Trump fired Board Members Todd Harper (a former board chairman) and Tanya Otsuka April 17. Both were Democratic appointees.
“The departure of two of our three NCUA Board Members has led to speculation within the credit union industry and trade press about the NCUA Board’s ability to exercise authority with the presence of only a single Board Member,” Hauptman told agency staff in the message. “Please be assured that the NCUA has precedent and standing delegations of authority in place to continue performing all operational and statutory requirements under the authority of a single Board Member.”
Hauptman’s message also indicated that NCUA has a “long-held view” that only one board member constitutes a quorum when there are no other Board Members.
“Chairman Hauptman and NCUA’s leadership are equipped with the required authorities to continue implementing the Administration’s priorities and fulfilling our mission of protecting the system of cooperative credit and its member-owners through effective chartering, supervision, regulation, and insurance,” the message states.
According to news reports, the credit union industry’s leading trade group, the America’s Credit Unions (ACU), maintained last week that under the Federal Credit Union Act (FCUA), without at least two members on the board, the NCUA is unable to implement any new action, but the agency can still perform its supervisory and examination duties.
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