A federal judge has issued a preliminary injunction preventing President Trump from removing Federal Reserve Governor Lisa Cook while her lawsuit is ongoing. The order was made by US District Court Judge Jia Cobb, who was appointed by President Biden.
Lisa Cook filed a lawsuit against President Trump, the Federal Reserve Board of Governors, and Chairman Jerome Powell after she was dismissed from her position last month. In his letter to Cook, President Trump stated: “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.” He continued: “I have determined that there is sufficient cause to remove you from your position,” referencing a criminal referral for mortgage fraud made by housing regulator Bill Pulte.
Cook has acknowledged in court documents that she produced documents related to the accusations and suggested a clerical error may be responsible for some of the issues. Allegations include that Cook owns three properties and committed mortgage fraud on each one. According to Bill Pulte’s first criminal referral, Cook allegedly lied on a mortgage application and falsified bank statements when designating an Atlanta condo as her primary residence shortly after obtaining a loan on her Michigan home, which she also listed as her primary residence.
A second referral sent by Pulte late last month alleges that Cook misrepresented another property in Cambridge, Massachusetts. She initially claimed it was a second home but later described it as an investment or rental property in an ethics form submitted to the US government. Mortgage loans for second homes generally come with lower interest rates than those for investment properties due to differing risk assessments by lenders.
Judge Cobb ruled that these allegations did not meet the “for cause” standard required for removal. She also found that Cook had “demonstrated irreparable harm from her removal.”
It has been reported that Judge Cobb and Lisa Cook are members of the same sorority.
