It’s a curious complaint, challenging Federal Reserve Governor Lisa Cook’s purported firing by President Trump. While there is more than enough to substantiate her position that she engaged in no mortgage fraud, the gravamen of the complaint isn’t that she’s innocent and falsely accused, but rather that regardless of the accusation, it would not constitute a basis for her removal from the Fed board of governors.
This case challenges President Trump’s unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would the first of its kind in the Board’s history. It would subvert the Federal Reserve Act (“FRA”), which explicitly requires a showing of “cause” for a Governor’s removal, which an unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not.
