Federal Reserve Governor Lisa Cook, accused of mortgage fraud, is pushing back with a lawsuit against the president. Her fight could end up before the Supreme Court.
By James Sanders
Essence
https://www.essence.com/
This story was initially published on Monday, August 25. We are updating the story as it develops.
UPDATEE as of September 10
Firing Federal Reserve Governor Lisa Cook may not be as easy as Trump thought. On Tuesday, Judge Jia Cobb passed down a preliminary injunction stopping her immediate dismissal.
Justice Cobb’s directive comes weeks after Federal Housing Finance Agency Director Bill Pulte accused Cook of committing mortgage fraud—specifically having to do with embellishing applications to get favorable loan rates.
Cook is the first and only member of the Federal Reserve.
UPDATE as of August 26
Lisa Cook’s attorney Abbe David Lowell said in a statement Tuesday that the Fed Governor would be suing the president after he sought to remove her from her post at the reserve on Monday.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” per Lowell. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.”
ESSENCE previously reported that Cook was being accused by Trump and Director of the Federal Housing Finance Agency of mortgage fraud. If Cook proceeds with her suit, it could be decided by the supreme court.
The Congressional Black Caucus rebuked the president Tuesday in support of Cook.
“President Trump is attempting to oust Dr. Lisa Cook − the first Black woman to serve on the Federal Reserve Board − with no credible evidence of wrongdoing.” They cite the organization’s history as precedent for Trump’s decision. “In the 111-year history of the Federal Reserve, no president has ever attempted to remove a governor of the central bank until now,”
This story is developing.
