Scott Bessent, the US treasury secretary, previously agreed to occupy two different houses at the same time as his “principal residence”, Bloomberg News reported on Wednesday, an agreement similar to one Donald Trump has called mortgage fraud in his unprecedented bid to fire Federal Reserve governor Lisa Cook.
The Bloomberg report cites Bessent’s mortgages with lender Bank of America and his pledge in 2007 to primarily occupy homes in New York and Massachusetts.
Mortgage experts told Bloomberg there was no sign of wrongdoing or proof of fraud in Bessent’s home-loan filings and said the issue highlights incongruities found in such documents.
Bank of America did not rely on Bessent’s pledges and never expected him to occupy both homes as his primary residences, Bloomberg reported, citing the mortgage documents.
“Nearly 20 years ago, Mr Bessent’s lawyers filled out paperwork properly, the bank has confirmed it was done properly, and this nonsensical article reaches the conclusion that this was all done properly,” Bessent’s lawyer Alex Spiro said in a statement.
The Republican president, who appointed Bessent to the Treasury post, and members of his administration have accused Cook, an appointee of Democratic former president Joe Biden, of committing mortgage fraud before taking office, a claim Cook denies.
Congress included provisions in the 1913 law that created the Fed to shield the central bank from political interference. Under that law, Fed governors may be removed by a president only “for cause,” though the law does not define the term nor establish procedures for removal. No president has ever removed a Fed governor, and the law has never been tested in court. Trump has sought to remove her for cause, citing the alleged fraud.
A US appeals court on Monday declined to allow Trump to fire her. The White House has said it will appeal the decision to the US supreme court. Trump’s Justice Department also has launched a criminal mortgage fraud inquiry into Cook, issuing grand jury subpoenas in Georgia and Michigan, Reuters previously reported.
A loan estimate for an Atlanta home purchased by Cook showed that she had declared the property as a “vacation home”, according to a document reviewed by Reuters. The property tax authority in Ann Arbor, Michigan, also said Cook had not broken rules for tax breaks on a home there that had been declared her primary residence.
Bloomberg in its report on Wednesday pointed to similar but not identical pledges made by an attorney on Bessent’s behalf on 20 September 2007, agreeing to make a Bedford Hills, New York, house his “principal residence” over the next year as well as another house in Provincetown, Massachusetts.
“There are people who think that President Trump is putting undue pressure on the Fed. And there are people like President Trump and myself who think that if a Fed official committed mortgage fraud, that this should be examined, and that they shouldn’t be serving as one of the nation’s leading financial regulators,” Bessent told Fox Business Network in an August 27 interview.