Seeking Alpha’s roundup of announcements, statements and remarks that could impact markets, sectors or individual stocks.
- The U.S. Justice Department has launched a criminal investigation into whether Federal Reserve Governor Lisa Cook engaged in mortgage fraud.
The probe comes in the wake of allegations by Federal Housing Finance Agency Director Bill Pulte that Cook misrepresented her residency status on mortgage applications for at least two properties.
The Wall Street Journal reported Thursday morning that the DOJ has issued subpoenas as part of its investigation.
Cook’s lawyers said in a court filing on Tuesday that she had not engaged in mortgage fraud. Cook has asserted that the allegations are part of an effort to remove her as a voting member of the Federal Open Market Committee, which is scheduled to meet Sept. 16-17.
- Meanwhile, Pulte, in an interview with CNBC, refused to disclose how the mortgage fraud allegations came to light.
“I’m not going to explain our sources and methods, where we get tips from, who are whistleblowers,” Pulte told CNBC on Thursday. “It would be reckless for me to do that.”
- The U.S. State Department said it’s “troubled” by the Norwegian sovereign fund’s decision to divest its holdings in Caterpillar (NYSE:CAT) over concerns about the company’s dealings with the Israeli government.
“We are very troubled by the Norwegian sovereign wealth fund’s decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government,” a department spokesperson said via email, according to CNBC. “We are engaging directly with the Norwegian government on this matter.”
Norwegian Finance Minister Jens Stoltenberg told CNBC that his government was not directly involved in the divestiture decision.
“The government is not involved in assessing individual companies,” Stoltenberg said via email. “The decision to exclude companies is an independent decision made by the Executive Board of Norges Bank, in accordance with the established framework. It is not a political decision.”