LISA COOK[ING] THE BOOKS: Trump Firing of Federal Reserve Governor Who Committed Mortgage Fraud Ignites Legal Fight

Make no mistake, Federal Reserve Governor Lisa Cook committed financial crimes. Ironically, among them were lies on mortgage applications to secure a lower interest rate (something she refused to do for Americans – lower interest rates). If nothing else, shouldn’t Americans expect those in high, fiduciary positions of public trust. controlling American monetary policy to be honest, honorable and free from criminal history?

The evidence against Cook is incontrovertible: two mortgage documents, two weeks apart, in which she claims two different principal residences. The fraud was to garner better interest rates on the mortgages for both locations, as she indicated that each one was her primary residence in order to get those favorable rates

Cook — who was appointed by former President Joe Biden in 2022 and is the first Black woman to serve on the Fed’s Board of Governors — committed mortgage fraud. Cook has denied any wrongdoing.

The Federal Reserve acknowledged Cook’s potential legal action and said in a statement that the U.S. central bank will “abide by any court decision.”

Trump fired Lisa Cook on Monday evening: “I have determined that faithfully executing the law requires your immediate removal from office. Thank you for your attention to this matter” (Truth).

Lisa Cook responded, refusing to recognize that she had, indeed, been fired: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in an emailed statement. “I will not resign” (ABC).

She will continue her fight in court, according to her lawyer: “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” Cook’s lawyer, Abbe Lowell, said in a statement… In challenging the removal order, Cook could immediately seek an injunction reinstating her while litigation moves forward. No charges have been filed against her, though a Justice Department official last week signaled possible plans to investigate her. The allegations also relate to actions taken before Cook joined the Fed, which some legal experts say could undercut Trump’s ability to assert that he has cause to fire her (Bloomberg).

She has been accused of mortgage fraud: [Federal Housing and Finance Agency (FHFA) Director Bill Pulte] accused Cook of mortgage fraud for listing two of her properties as her permanent residence. “Lisa D. Cook, committed mortgage fraud by designating her out-of-state condo as her primary residence, just two weeks after taking a loan on her Michigan home where she also declared it as her primary residence,” the FHFA director wrote last week in a post on social platform X. He also noted he made the appropriate referrals to the Justice Department for investigation (The Hill).

Can Trump fire one of the governors of the Federal Reserve? Mike Davis of the Article III project: Yes, and if the president of the United States does not have the power under Article II of the Constitution to fire any executive branch officer in the government, then that scheme of the government is unconstitutional (Jennings).

Trump says he’s ‘always’ ready for a legal fight amid ousting of Fed Governor Lisa Cook

President Donald Trump doubled down Tuesday, saying he is “always” ready for a legal fight after Federal Reserve Governor Lisa Cook signaled she would pursue legal action over her ouster

By: Fox News, August 26, 2025:

In the wake of the unprecedented removal of a Federal Reserve governor, President Donald Trump doubled down on his decision Tuesday, saying he is “always” ready for a legal fight after the ousted governor, Lisa Cook, signaled she would pursue legal action.

“She seems to have had an infraction and she can’t have an infraction. And especially that infraction because she’s in charge of, if you think about it, mortgages. We need people that are 100% above board, and it doesn’t seem like she was,” Trump said, referencing Cook’s alleged misconduct in securing mortgage loans.

The Federal Reserve acknowledged Cook’s potential legal action and said in a statement that the U.S. central bank will “abide by any court decision.”

“Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System,” a Federal Reserve spokesperson wrote in a statement to Fox News Digital.
Chairman of the US Federal Reserve Jerome Powell and Fed Gov Lisa Cook

The Federal Reserve Board of Governors, commonly known as the Fed Board, is composed of seven members, or governors, who are nominated by the president and confirmed by the Senate.

Cook’s potential removal from the Fed Board leaves a seat open on the panel that guides the nation’s monetary policy. This gives Trump another opportunity to name someone closely aligned with his financial policy to the Fed.

When asked about replacing Cook on the Fed Board, Trump told reporters at the White House that he has some “very good people for that position.”
A photo of Federal Reserve Chairman Jerome Powell swearing in Lisa Cook

Federal Reserve Chairman Jerome Powell is seen swearing in Lisa D. Cook as a member of the Board of Governors of the Federal Reserve System in May 2022. (U.S. Federal Reserve)

Trump accused Cook — who was appointed by former President Joe Biden in 2022 and is the first Black woman to serve on the Fed’s Board of Governors — of mortgage fraud on Monday evening. Cook has denied any wrongdoing.

The allegations stem from Bill Pulte, a Trump appointee to an agency that regulates Fannie Mae and Freddie Mac. Pulte accused Cook of claiming two primary residences, one in Ann Arbor and another in Atlanta in 2021, with the goal of getting better mortgage terms.

On Aug. 15, Pulte sent the Justice Department a criminal referral regarding Cook in which he accused her of falsifying bank documents and property records.

As it stands, Trump says Cook is fired, effective immediately. But Cook and her lawyer, Abbe Lowell, argue that he has no legal authority to remove her. Her term on the Fed Board runs until January 2038.

Continued…..