Overview
- The White House announced Friday that President Trump signed a memorandum creating a three-person committee to investigate claims that Governor Lisa Cook made false statements on mortgage documents and to report whether there is cause to remove her under 12 U.S.C. 242.
- The panel, made up of the assistant to the president for economic policy, the EEOC chair and the acting director of the Office of Government Ethics, will hold a closed, transcribed White House hearing on November 5 limited to four hours and may request documents and testimony.
- The allegations began with former FHFA director Bill Pulte’s referral and led to no criminal charges; reporting shows some loan records point to a likely clerical error and federal watchdogs are probing Pulte’s handling of mortgage data.
- Cook denies wrongdoing and her lawyers say she welcomes a chance to clear her name but express grave doubts the process will be fair, and they are reviewing whether to participate and how to respond in writing before and after the hearing.
- The move follows a divided Supreme Court decision in June that blocked an earlier firing for lack of process and left open a lawful for-cause removal if proper notice and an opportunity to respond are given, a step that could reshape the Fed board if a vacancy results and a successor must be confirmed.