Cook has denied committing fraud.
In a November letter to the Justice Department, her lawyers said the claims were based on “cherry-picked, incomplete snippets of the full documents”.
They said there was “one stray reference to primary residence” in a mortgage application for an apartment in Alabama, but noted that the file also contained “truthful and more specific disclosures about the property’s use”.
“There is no fraud, no intent to deceive, nothing whatsoever criminal or remotely a basis to allege mortgage fraud,” her lawyers wrote.
Arguing on behalf of Cook, Paul Clement said people in her position should have the chance to present their evidence and be shielded from having a decision made in advance.
He said the administration’s interpretation of the law would make the protection that Congress intended by inserting the “for cause” requirement “toothless”.
Some justices indicated that they shared those concerns.
The “position that there’s no judicial review, no process required, no remedy available, very low bar for cause that the president alone determines – that would weaken if not shatter the independence of the Federal Reserve,” Kavanaugh said.