- A group of banks and business groups are suing the Federal Reserve over the annual bank stress tests, saying the current process falls short of its goals.
- The suit comes from the Bank Policy Institute, which represents big banks like JPMorgan, Citigroup and Goldman Sachs, as well as the American Bankers Association, the Ohio Bankers League, the Ohio Chamber of Commerce and the U.S. Chamber of Commerce.
- The legal action follows the Fed saying it is looking to make changes to the bank stress tests.
A group of banks and business groups are suing the Federal Reserve over the annual bank stress tests.
The Bank Policy Institute, which represents big banks like JPMorgan
, Citigroup
and Goldman Sachs
, is joining the American Bankers Association, the Ohio Bankers League, the Ohio Chamber of Commerce and the U.S. Chamber of Commerce to file the suit, which they said aims to “resolve longstanding legal violations by subjecting the stress test process to public input as required by federal law.”
The groups said they don’t oppose stress testing, but that the current process falls short and “produces vacillating and unexplained requirements and restrictions on bank capital.”