Billionaire investor Bill Ackman is weighing in on the feud between President Donald Trump and Federal Reserve Governor Lisa Cook, calling on the latter to address allegations of mortgage fraud directly, while warning that the integrity of the American financial system remains at stake.
It’s ‘A Question of Fact,’ Not Politics
On Wednesday, in a post on X, Ackman referenced the “long history of Fed Governors” who stepped down over relatively minor “ethical or legal infractions,” in view of the “unimpeachable probity” required of people serving in such positions.
According to Ackman, the allegations against Cook similarly require a simple answer. He says, “It is either true or false that Governor Cook misrepresented her primary residence status on one or more mortgage applications,” while adding that the evidence put forth by William Pulte, the Director of the Federal Housing Finance Agency, “strongly suggests” that she has committed “mortgage fraud.”
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Ackman says, “It should be straightforward for Governor Cook to disprove the alleged fraud.” He questioned why legal action was even necessary, insisting that “it shouldn't require a team of lawyers and litigation.”
The matter, he says, hinges on a direct query, “Did she or didn't she sign an affidavit declaring that the subject properties were her primary residences? Yes or no.”
He also dismissed questions regarding Trump’s authority to remove Cook, saying that it’s “not that relevant in my view.” He says, what matters is whether a Federal Reserve Governor committed mortgage fraud or not. “It is not a political question. It is a question of fact.”
Ackman concluded by asking Cook to either “put forth the facts to clear her name” or resign from her position, in the interests of the integrity of the financial system. “The sooner this occurs, the better for her and our country.”
No ';Factual or Legal Basis'
On Tuesday, Cook's lawyer, Abbe Lowell, argued against her dismissal, saying that, “His [Trump’s] 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.”
Trump’s decision to fire Cook marks an unprecedented move in the 111-year history of the Federal Reserve, whose Governors serve 14-year terms, which is primarily aimed at shielding policy decisions at the institution from political pressures.
Sen. Elizabeth Warren (D-Mass.) criticized Trump’s decision, calling it an “authoritarian power grab” that blatantly violated the Federal Reserve Act.
Warren accused Trump of using Cook as a “scapegoat” to distract Americans from his own failures in not being able to bring costs down.
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