WASHINGTON, D.C.— Dennis M. Kelleher, Co-founder, President, and CEO, issued the following statement regarding the unlawful firing of Federal Reserve (Fed) Governor Lisa Cook.
“President Trump’s brazen, baseless attempt to fire Fed Governor Lisa Cook is illegal and Fed Chair Jay Powell should immediately say so and publicly state that she is a member in good standing of the Fed. Moreover, this threat to the rule of law and the U.S. central bank should be publicly opposed by a bipartisan chorus of everyone who believes in the rule of law and the importance of a non-partisan, non-political central bank, including, importantly, Senate Banking Chair Tim Scott and the other Republican Senators on the Banking Committee.
“Moreover, the usually vocal titans of Wall Street, including JPMorgan Chase CEO Jamie Dimon, Goldman Sachs CEO David Solomon, Citigroup CEO Jane Fraser, Morgan Stanley CEO Ted Pick, Wells Fargo CEO Charlie Scharf, and the other so-called leaders of the financial industry must use all of their influence to stop Trump’s illegal and reckless attempt to put the Fed under the political control of the White House. Otherwise, they have no one to blame but themselves when monetary policy is thoroughly politicized, inflation rages, and financial and economic activities thrown into needless turmoil.
“At some point, the economic, corporate, financial, legal, nonprofit, and other leaders in the U.S. must recognize that Trump’s use of the virtually unlimited power of the federal government to go after his political opponents or critics—real or perceived—will destroy the country, including those leaders and what they claim to care about. All must remember the famous poem attributed to German pastor Martin Niemöller that highlights the inevitable consequences of inaction in the face of injustice:
First they came for the Socialists, and I did not speak out—Because I was not a Socialist. Then they came for the Trade Unionists, and I did not speak out—Because I was not a Trade Unionist. Then they came for the Jews, and I did not speak out—Because I was not a Jew. Then they came for me—and there was no one left to speak for me.
“That’s where Trump’s United States is going unless leaders speak out and now is the time to draw the line. As everyone knows, these are trumped up charges by a political ally of the President for the purpose of getting the Fed to act on monetary policy at the direction of the White House. The dire consequences of doing so are apparent to all. While the Wall Street titans apparently are all hoping that someone else will stand up or believe that the courts will act appropriately or that somehow everything will miraculously work out okay, there is no basis for that optimism, and all the evidence is to the contrary. Now is the time to stand up and speak out or go down in history as among the cowards who cashed in, kept quiet, and enabled the destruction of America’s core institutions.
“This is a particularly unconscionable level of cowardice for the Wall Street CEOs because they know better than almost anyone else that the damage from this action will extend far beyond Governor Cook and the Fed. The aftershocks will echo and reverberate around the world, preventing the Fed from doing its job, eliminating the U.S.’s position as the leader in financial markets, and threatening the financial future of every American family and business.
“Fed Chair Powell, Senators and Congress members, the CEOs on Wall Street and in Corporate America as well as their powerful trade groups and lobbyists in Washington, and all the other claimed leaders of America now have a choice: Either stand up against this action or remain silent, enable the devastating consequences, and suffer the judgement and opprobrium of history. Those with the standing, power, authority, legitimacy, and influence must act now and oppose this firing, the politicization of the central bank, and the destruction of America’s core institutions.”
###
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
