Compliance Blog: Examining the impact of Slaughter decision
A breakdown of this week’s Trump v. Slaughter decision and what it means for the future of the NCUA board is available on America’s Credit Unions’ Compliance Blog. Monday, the U.S. Supreme Court ruled the president can fire federal agency officials at will in a challenge brought by dismissed Federal Trade Commission (FTC) Commissioner Rebecca Slaughter.
The court’s decision explicitly overruled its 1935 decision in Humphrey's Executor v. United States, which set the precedent that Congress could create independent, bipartisan commissions and that presidents cannot remove members of those commissions without cause.
As the blog details, the effects of the ruling go far beyond the FTC, including a direct impact on the NCUA board. While the D.C. Circuit Court must still consider the impact of this decision when ruling on the challenge from dismissed NCUA board members Todd Harper and Tanya Otsuka, the Slaughter decision essentially ends their challenge to be reinstated.
The entry also examines the decision in Trump v. Cook, which dealt with the dismissal of Federal Reserve Board Governor Lisa Cook. The decision allows Cook to remain on the board while she challenges the president’s attempt to remove her.
The Compliance Blog is updated every Tuesday and Thursday.