Federal Reserve Governor's Legal Team Challenges Dismissal Over Mortgage Dispute

According to BlockBeats, the legal team representing Federal Reserve Governor Lisa Cook has argued that a mortgage dispute, which led U.S. President Donald Trump to seek her dismissal, may have originated from an "unintentional clerical error." This argument aims to counter allegations of fraudulent intent made by Trump and Federal Housing Finance Agency Director Mark Calabria. The lawyers assert that even if an error occurred, it was not deliberate deception, and no one suffered harm, which pertains to the legal standard of "materiality." The legal team stated that Cook might have incorrectly marked the purpose of a property in a mortgage application long before joining the Federal Reserve Board, but there was no intent or substantial impact, which does not constitute "just cause" for removal. The lawyers also highlighted that neither Trump nor Calabria explicitly accused Cook of benefiting from the error or that it was intentional. Previously, Federal Reserve Governor Lisa Cook filed a lawsuit against U.S. President Donald Trump, protesting his attempt to remove her from her position at the Federal Reserve.