US President Donald Trump has set up a committee to investigate Federal Reserve Governor Lisa Cook over unproven allegations that she made false statements on mortgage documents.
Cook has denied wrongdoing and has not been charged with a crime.
Her lawyers have questioned whether the inquiry will be fair, but said she is ready to present evidence to defend herself.
Trump sets November 5 hearing for Lisa Cook mortgage inquiry
The White House announced the inquiry in a memorandum dated October 7. The committee will examine allegations that Cook made “false statements in connection with one or more mortgage instruments. The panel includes Kevin Hassett, Trump’s top economic adviser; Keith Sonderling, acting director of the Office of Government Ethics; and Andrea Lucas, head of the Equal Employment Opportunity Commission. Mortgage lenders may offer different terms depending on whether a property is a primary residence or a second home. However, Cook’s lawyers have rejected claims of fraud. In a formal response submitted in August, they described the Atlanta property’s designation as an “entirely inadvertent oversight. Cook’s legal team has questioned whether the hearing will follow the law.
It will report to Trump on whether there is legal “cause” to remove Cook from the Federal Reserve Board. The allegations against Cook centre on whether the way she described her Atlanta condominium and her Michigan home misled lenders about how the properties would be used, according to The New York Times. They also said other records correctly identified the condominium as a vacation home. In a statement, her lawyers said they had “grave doubts that this ‘hearing’ is a legitimate one that would conform to the law. “But if it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve Board,” they added.
