Washington — President Trump has created a committee to look into allegations that Lisa Cook, a member of the Federal Reserve Board of Governors, made false statements on mortgage documents, the latest step in his renewed effort to fire Cook from her post at the central bank.
The president signed a memorandum, dated Wednesday, creating what he calls a “committee of inquiry” that will consist of three members: the assistant to the president for economic policy, the chairman of the Equal Employment Opportunity Commission and the head of the Office of Government Ethics.
After conducting its investigation of Cook, the committee will report to Mr. Trump whether there is “reason” to remove her from the Fed board. The three-member panel will hold an in-person hearing at the White House on Nov. 5 to “review 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 has the opportunity to submit a “written position statement” to the committee in response to the charges against her and may appear at the proceeding, the chairman’s memorandum states.
“Governor Cook may present arguments, written evidence, and written witness statements regarding the evidence and allegations,” it continues. “The Committee may also question Governor Cook about any representation she or her counsel makes during the hearing, or it may authorize its representatives, including Department of Justice staff, to conduct such questioning.”
Abbe Lowell and Norm Eisen, Cook’s attorneys, said she “welcomes the opportunity to present the facts so she can clear her name and demonstrate that there is no legal basis to terminate her.”
“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 serious doubts that this ‘hearing’ is legitimate and compliant with the law. But if it comes close to the mark, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no reason to remove her from the Federal Reserve Board,” they said in a statement. “We have engaged with the White House to assess whether the proposed process has the potential to be authentic and not simply a box-checking exercise.”
The president’s creation of the committee to investigate the allegations against Cook appears to be Mr. Trump’s latest attempt to ensure that any attempt to fire her can withstand legal scrutiny. The president first tried to oust Cook from the Fed last year after a senior official in his administration, Bill Pulte, claimed she made false statements on mortgage documents related to two properties before joining the central bank.
Cook challenged his removal, arguing that it violated federal law, which allows a president to remove a member of the Fed board “for cause.”
The Supreme Court ruled in June that Cook could continue in his position while his legal challenge to his alleged impeachment continued. In a Decision 5-4The high court found that Mr. Trump failed to provide Cook with the procedural protections she was entitled to under the law — particularly notice and the opportunity to respond to the allegations before her firing.
“This does not mean that a Federal Reserve governor is entitled to an audience with the President or a real legal trial,” Chief Justice John Roberts wrote for the majority. “Instead, all that is required is to inform ‘the officer of the charges against him’ and ‘to be given an opportunity to be heard in his defense’.”
Roberts continued: “We see no reason why this opportunity ‘could not be obtained on written materials alone,’ without an oral presentation.” All that is required is “the right to support one’s allegations by arguments however brief, and, if necessary, by evidence, however informal”, before a final decision is made.
Mr. Trump mounted another attempt to fire Cook after the Supreme Court ruled in his favor. In a letter to the Fed governor in August, the White House informed Cook that Mr. Trump was considering firing her over the mortgage fraud allegations and outlined the accusations against her. The White House also set a deadline for Cook to respond.
Cook has denied the accusations and argued in a response at the White House that she “never committed mortgage fraud.” Lowell, Cook’s attorney, said attempting to fire her based on mortgage fraud allegations would “ignore the facts and the law.”
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