A pair of Democrat officials recently dismissed from a credit union watchdog have filed a lawsuit against US President Donald Trump and other senior government officials, alleging that their removal was patently unlawful.
The officials, Todd Harper and Tanya Otsuka, filed the suit in the US District Court for the District of Columbia, seeking reinstatement as board members of the National Credit Union Administration, NCUA, which spearheads the nation's $2.3 trillion credit union sector.
In their complaint, the pair stated that they were dismissed without explanation or cause, via brief emails sent by Trent Morse, Deputy Director of the White House Presidential Personnel Office.
The duo were said to have had several years remaining on the fixed terms they were appointed to serve at the agency, having been confirmed to the roles by Congress.
Spokespeople for the White House and NCUA have not yet commented on the matter.
According to the duo in separate statements, the dismissals violate the law, undermine the regulator, and hinder its ability to protect the financial system.
“The President’s unprecedented and unlawful decision to terminate two-thirds of the NCUA Board legally serving within their Senate-confirmed terms and without providing any cause should concern everyone who uses a federally insured financial institution like a credit union or a bank,” Harper said.
The lawsuit marks the latest challenge to Trump's efforts to abruptly remove senior officials at agencies Congress had intended to be independent of the President.
Recall that two Democrats removed from the Federal Trade Commission filed a similar suit in March, and a parallel dispute over removals at the National Labour Relations Board and the Merit Systems Protection Board has risen to the Supreme Court.
The credit union dismissals from earlier this month have left the regulator, which is supposed to operate as a bipartisan three-member panel, with a sole Republican official, Kyle Hauptman, serving as its chairman.
The lawsuit alleged that the dismissals were not only illegal, but may also cripple the agency, since the law requires a quorum of the majority of the board to exert its authorities, including supervising and drafting rules for credit unions.
