"The question was whether a social media post accusing Federal Reserve Governor Lisa Cook of mortgage fraud and calling for her resignation counted as official notice prior to termination. Under 12 USC § 242, members of the Board of Governors can only be removed "for cause," giving Cook a due process right to contest her removal. But Sauer argued that tagging Cook and giving her a chance to clap back was process enough."
"The "notice" came on August 20, when Trump posted a Bloomberg story detailing allegations by Bill Pulte, director of the Federal Housing Finance Agency, that Cook made false claims on a mortgage application to score a lower rate. "Cook must resign, now!!!" he screeched on Truth Social. The government says the post put the onus on Cook to come forward and clear her name. And since she failed to throw down in the comment section or slide into Trump's DMs, he was justified in firing her five days later for "deceitful and potentially criminal conduct in a financial matter.""
A legal dispute centers on whether a presidential social media post can constitute official notice under 12 USC § 242 for the removal of a Federal Reserve Governor. The Solicitor General contended that a Truth Social post linking a Bloomberg story alleging mortgage fraud by Lisa Cook, plus the opportunity to respond, satisfied notice requirements and justified removal for "deceitful and potentially criminal conduct." The government argued that Cook's failure to respond meant process had occurred. The trial judge rejected that view and scoffed at the notion that a social media post could serve as formal notice.
Read at Above the Law
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