The U.S. Department of Justice asked the Supreme Court to stay a preliminary injunction imposed by the U.S. District Court for the District of Columbia to allow Federal Reserve Gov. Lisa Cook to remain in her seat on the Fed Board.
The request is the Trump administration’s latest move in its effort to remove Cook “for cause” over mortgage fraud allegations, based on a criminal referral provided by Federal Housing Finance Agency Director Bill Pulte.
U.S. Judge Jia Cobb granted the preliminary injunction after finding the administration violated Cook’s Fifth Amendment right to due process and caused her “irreparable harm.” Cobb also contended that “the public interest and the balance of the equities also favor Cook” in a memorandum detailing her reasoning.
The Trump administration appealed the decision to the D.C. Court of Appeals, which upheld Cobb’s determination that Cook’s Fifth Amendment rights had been violated and she should be allowed to remain in her Fed Board seat, pending the conclusion of legal proceedings concerning the allegations against her.
Dodd Frank Update will have more on this developing story in the coming days.