BARR BACKS TRUMP ON REMOVING LISA COOK FROM FEDERAL RESERVE BOARD

The following information was released by the office of Kentucky Rep. Andy Barr:

Today, U.S. Congressman Andy Barr (R-KY), Chairman of the House Financial Services Subcommittee on Financial Institutions, backed President Trumps decision to remove Lisa Cook from the Federal Reserve Board of Governors. Barr released the following statement:

The Federal Reserve is the top bank regulator in the country. As a consequence, Fed Governors assume a duty to avoid even the appearance of impropriety in their personal financial matters. By removing for cause a Fed Governor who either intentionally committed mortgage fraud or demonstrated gross negligence in applying for a mortgage, President Trump is doing a service to the country. Fed independence doesnt mean that the Fed is wholly immune from accountability.

Federal Reserve Governor Lisa Cook has been accused of claiming two different homes as primary residences potentially enabling her to make lower downpayments and obtain lower interest rates for her mortgages.

As the Wall Street Journal noted in reporting on Cooks ouster, The Federal Reserve Act, first adopted in 1913, provides 14-year terms for Fed governors, unless sooner removed for cause by the President. The statute doesnt define cause, but laws establishing other independent agencies typically refer to neglect of duty, inefficiency or malfeasance as grounds for removal.