ALEXANDRIA, Va.— President Trump’s removal of two Democratic NCUA board members is fueling growing concerns about the agency’s future among both credit union insiders and those outside the movement.
As CUToday.info reported, in what appears to be an unprecedented move, the White House Wednesday fired NCUA board members Todd Harper and Tanya Otsuka.
The Consumer Federation of America (CFA) said the actions threaten the ability of NCUA to oversee credit unions.
“The National Credit Union Administration Act requires the NCUA’s board to have bipartisan leadership under a framework independent from political pressure,” said Adam Rust, director of financial services for the CFA. “This is the latest in a string of actions by the Trump Administration to subvert the law and undermine financial regulators that keep Americans’ money safe.”
Rust said firing Harper and Otsuka compromises the ability of the NCUA to fulfill its obligation to “serve the needs of 142 million individuals and small businesses who have entrusted credit unions with their hard-earned money. It puts people at risk when partisan politics takes precedence over common sense.”
Michael Fryzel Calls Harper 'Dedicated Servant'
Former NCUA Chairman, Michael Fryzel reacted to the news saying Harper is a dedicated public servant.
“He has spent years working for the federal government and the people of our country. His knowledge of credit unions is unmatched,” Fryzel said. “He worked with Congressman (Paul) Kanjorski on legislation vital to credit unions. He knows and understands every aspect of the Credit Union Act and the rules and regulations that govern the industry. And above all, he has advocated for safety and soundness to protect credit unions and their members.
Fryzel said Harper served with distinction as a key staff member for former NCUA Chairperson Debbie Matz.
“He was the first NCUA staff member to serve as a member of the board having been appointed to that position by President Trump in 2019,” Fryzel noted. “In 2021, President Biden designated him as chairman. Whoever advised the President to take action to remove Todd from the board was wrong to do so. Chairman Harper showed his ability to work in a bipartisan way when he was the only Democrat on the board and again when he was in the majority. His hard work and dedication will be missed.”