Trump Sets Nov. 5 White House Hearing on Firing Fed Governor Lisa Cook
A three-member 'committee of inquiry' will weigh mortgage-fraud allegations behind closed doors two days after the midterms. Cook's lawyers say they have 'grave doubts' the process is genuine.
President Trump has established a committee to look into allegations that Federal Reserve Governor Lisa Cook made false statements on mortgage documents, the latest step in his renewed effort to remove her from the central bank's board.
Trump signed a memorandum, dated Wednesday, creating what he called a "committee of inquiry." It will have three members: the assistant to the president for economic policy, the chair of the Equal Employment Opportunity Commission and the head of the Office of Government Ethics. After its investigation, the committee will report to Trump on whether there is "cause" to remove Cook from the Fed Board.
The panel will hold an in-person hearing at the White House on Nov. 5 to "consider the evidence and allegations" against Cook, according to the memorandum. The hearing will not be public but will be transcribed, the White House said. Cook may submit a written position statement and appear at the proceeding. "Governor Cook may present argument, written evidence, and written witness statements regarding the evidence and allegations," the memorandum says. The committee may question her, or authorize its representatives, including Justice Department personnel, to do so.
Cook's lawyers, Abbe Lowell and Norm Eisen, said she "welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her." But they said they have doubts. "In light of the President's repeated statements that he has already decided to fire Governor Cook — regardless of the facts and evidence — we have grave doubts that this 'hearing' is a legitimate one that would conform to the law," they said. They added that they are evaluating whether the process "has a possibility of being a genuine one and not simply a box checking exercise."
Trump first tried to oust Cook last year after Bill Pulte, a senior member of his administration, claimed she made false statements on mortgage documents for two properties before she joined the Fed. Cook challenged the removal, arguing it violated a federal law that allows a president to remove a Fed governor only "for cause."
In June, the Supreme Court ruled 5-4 that Cook could keep serving while her legal challenge continues. The majority found Trump had not given her the procedural protections she was entitled to, specifically notice and an opportunity to respond before she was fired. Chief Justice John Roberts wrote that a Fed governor is not "entitled to an audience with the President or a fullblown judicial trial," but that the law requires notice "of the charges made against him" and "an opportunity to be heard in his defense." He added that this opportunity could be "had on written materials only."
Trump tried again after that ruling. In an August letter, the White House told Cook that he was considering removing her and laid out the claims. Cook denied the accusations in a response, saying she has "never committed mortgage fraud." Lowell has said that attempting to remove her on these allegations would "ignore the facts and the law."
The new committee appears designed to help any second attempt withstand legal scrutiny. The Nov. 5 date falls two days after the midterm elections.
