Bank Stress Tests Lawsuit Against Federal Reserve
A group of banks and business groups are suing the Federal Reserve over the annual bank stress tests. They aim to resolve legal violations by subjecting the stress test process to public input. The Fed is looking to make changes to the stress tests to improve transparency and reduce volatility of capital buffer requirements.
Key Points
- Banks suing Fed over stress tests
- Fed looking to make changes to improve transparency
- Concerns about onerous capital requirements
Pros
- Aims to improve transparency of stress tests
- Seeks public input on stress test process
Cons
- May not satisfy concerns about capital requirements