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U.S. banking lobby groups said on Tuesday they had filed a lawsuit against the Federal Reserve over its stress testing framework, a major escalation in the industry’s ongoing battle with regulators.
The news comes just a day after the Federal Reserve announced plans to make “significant changes” to the annual stress tests of large U.S. banks to make the testing process more transparent and reduce volatility in the results.
“We applaud the board’s statement and view it as a first step toward transparency and accountability, but believe litigation is necessary to preserve our legal rights,” said Greg Bell, president and director of the Bank Policy Institute industry group. (Greg Baer) stated that the Bank Policy Institute is one of five Bank Policy Institutes.
This is a development story
