ALEXANDRIA, Va.–NCUA’s chairman is downplaying any threat to the agency’s existence as the result of a case currently before the Supreme Court.
As CUToday.info reported here, the Supreme Court has announced it will hear an appeal of a lawsuit challenging the funding mechanism of the CFPB and will review a decision of the 5th U.S. Circuit Court of Appeals in October 2022 that found the CFPB’s funding mechanism to be unconstitutional. That three-judge panel had ruled that placing CFPB funding outside of the process violates the U.S. Constitution’s structural separation of powers.
As CUToday.info then separately reported here, NAFCU recently noted there has been some talk about how the FDIC’s structure is not that different from the CFPB’s. “No one mentioning that NCUA is similarly structured as an independent agency outside of the appropriations process,” said NAFCU Director of Regulatory Affairs Ann Petros. “We are cognizant of that and want to see a narrow decision that resolves the issues related to the CFPB but doesn’t throw into uncertainty the functioning of other regulators.”
Asked about the what the future could hold for NCUA, Harper said during a call with the media that the agency’s source of funding (credit unions and earnings from the NCUSIF) has long been an important part of the financial regulator’s existence.
‘Confident…No Matter What Happens’
“After the savings and loan crisis, lawmakers saw that one of the issues was whether there was an independence from the appropriations process,” said Harper. “We’re carefully watching what is happening with the Supreme Court and I'm confident that the agency will be able to continue to operate no matter what happens and gets decided.”
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