Crews Nomination to NCUA Board Moves Forward

Correction: Our earlier update was slightly ahead of the final procedural steps in the Senate process.

While the cloture vote occurred as expected, subsequent Senate action cleared the way for a final vote on the nominee package next week.

Although our timing was a bit premature, the trajectory of the nomination remains unchanged. Thank you for your patience, and we’ll continue to keep you informed as the process moves forward.

 

The U.S. Senate moved closer to confirming  John Crews to serve on the National Credit Union Administration Board.

GoWest leaders have had the opportunity to meet with Crews on a number of important credit union issues during his service at the U.S. Department of the Treasury, and we look forward to working with him in his anticipated role as Chairman of the NCUA Board. During his confirmation hearing, he outlined a supervisory framework that remains responsive to a changing financial services marketplace.

Harper-Otsuka Litigation Pending

With NCUA Board seats still vacant, the pending Harper-Otsuka litigation before the federal appeals court could soon change the make-up of the Board as well. Plaintiffs Todd Harper and Tanya Otsuka were deferred an expedited appeal following the Supreme Court’s Slaughter decision and have argued that Slaughter, together with the Cook decision, supports their case for reinstatement. The appeals court directed the Department of Justice (DOJ) to file a response by July 29, addressing how the Slaughter and Cook cases affect the matter before proceeding, with Harper and Otsuka’s reply due August 5. We expect the DOJ to seek summary judgment, arguing that the same fact pattern applies here as in Slaughter, while Harper and Otsuka are expected to argue that the NCUA is more comparable to the Federal Reserve and does not exercise “executive authority.”

GoWest expects to know more after the August 5 response about whether the case will proceed. If the DOJ presents a strong case, summary judgment could occur within the next few weeks, paving the way for the president to move forward with nominees to replace Harper and Otsuka.

Credit union leaders should not hesitate to reach out to John Trull or Erin Hall with any questions related to the NCUA Board or these developments.

Posted in Advocacy on the Move, Regulatory Advocacy.