Is Lisa Cook really Cooked?

Is there any doubt that Trump has his minions out there searching for any dirt on his enemies or those who don’t kiss his ring? The latest is the case of Lisa Cook who is being investigated for mortgage fraud. Cook’s case like those of Letitia James and Adam Schiff has been referred to the “Justice” Department where Pam (Blondie) Bondi has Trump sycophant Ed Martin leading the investigation of the three. You may recall that Martin was supposed to be US Attorney for the District of Columbia but couldn’t even get enough republican senators to support his nomination. The Five’s Jeanine Pirro now has that job. Martin was gifted the job of DOJ pardon attorney – whatever that is. It seems that his main duty is to pursue Trump’s enemies like Schiff and James.

Cook’s records were unearthed by William Pulte head of the Federal Housing Finance Agency which oversees Fannie Mae and Freddie Mac. Pulte tweets that “Ms. Cook appears to have “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under criminal statute.” The Wall Street Journal reported that Pulte then went full attack dog by tweeting that “the President has great cause to fire Lisa Cook” and mused that Federal Reserve Chair Jerome Powell might “be complicit with Cook’s alleged fraud.” He reiterated his insinuations that Mr. Powell is covering up Ms. Cook’s alleged fraud in a CNBC interview.” For some of us the attempt to link Powell to Cook strains credulity but is clearly an effort to push both of them off the Fed board.

There are some that have already branded Cook of being guilty of mortgage fraud and should resign from the board. Trump can only fire her for cause and there are some legal experts that question whether this rises to that charge. I am not a lawyers so I won’t speculate. However, I just caution to wait until all the evidence is in. Remember all of you insisting that Cook resign that Donald Trump was indicted and convicted of mortgage fraud by a New York court. The verdict found that Trump and his Trump Organization empire had illegally enriched themselves by defrauding banks as part of a decade-long scheme to secure favorable financing terms for some of his properties. Again I know that many think the charges were “trumped” up but the fact remains that the verdict has not been overturned – but the penalties were reduced. So let’s not prematurely assume either guilt or innocence.

Trump’s folks are salivating at the possibility and are saying that Cook’s resignation is inevitable. Cook says she won’t be bullied. I can’t figure out why her resignation is “inevitable.” If pursued, it will be an interesting case study in whether such an offensive will justify removal “for cause.” Trump clearly cannot fire her. However, she can be impeached by the senate. I wonder why that hasn’t been discussed. Trump’s attack dog in the senate is Bernie Moreno (R-Ohio – Go Bucks!). I am somewhat surprised that Moreno hasn’t started impeachment proceedings against Cook.

In Red State, one article written by someone who calls him/herself “streiff” screams “Cook Is Cooked. Real Estate Fraud Gets a Federal Reserve Governor a Federal Investigation”. The author (streiff) first rehashes charges by vita scrutinizer Christopher Rufo of Cook committing plagiarism and somehow rising to the rank of tenured full professor despite a “thin” vita. Its interesting that those allegations have never been subject to an academic investigation and as an academic, I can guarantee that the academy takes those charges seriously, provided they have merit. Well if “streiff” actually looked at Cook’s vita he/she/it would see that it is anything but thin. In fact, Cook may be the most qualified member of the Fed board.

Then “streiff” (he/she/it) says that if Cook is forced to resign and Powell leaves after his term as chairman ends in May, then “replacing Cook on the Board and Powell as chairman next May would give Trump complete control of U.S. monetary policy, which can then be coordinated with regulatory and trade reforms to boost the U.S. economy.” 

Sorry Mr/Mrs/Ms streiff (he/she/it) but you are wrong. Yes Cook would have to leave but Powell would have to leave the Board as well even though he could remain on the board as a governor. I wonder if Powell will resign once his term as chairman ends. Michael Barr stuck around after he left the post of vice chairman for supervision. The Red State author is assuming that whoever gets nominated to fill Kugler’s seat in January and whoever replaces Powell as chairman will be Trump’s puppets at the Fed. The author (streiff) is also assuming that current Trump appointees Waller and Bowman will also be under Trump’s thumb. However, Waller and Bowman voted with the rest of the Open Market Committee (and Powell) to hold the Fed funds rate steady until the last meeting despite withering criticism from the president. They only changed their votes because they likely wanted Trump to name them to replace Powell. I look for them to revert to independence once Trump names a new chairman. I know the Fed members cherish their independence. I would wager that Trump appointees will do the same.

What would be interesting is if Powell did not resign his board seat when he steps down. That would force Trump to appoint either Waller, Bowman or whoever replaces Kugler as chairman. If I were Powell, that is exactly what I would do and when that person who is already on the Board is confirmed, then I would resign. Take that Trump! By the way, the other Biden appointee is Phil Jefferson an economics professor from Davidson College. Well Dr. Jefferson had better watch out because you can bet that Pulte and Trump’s other attack dogs are trying to dig up dirt on him too.