Banks Challenge Federal Reserve's Stress Test Processes in Lawsuit

Reported 1 day ago

In a recent lawsuit filed in Ohio, several banks and trade associations claim that the Federal Reserve does not allow sufficient public input in the design of bank stress tests. While the suit does not aim to eliminate existing testing requirements established after the 2008 financial crisis, it seeks to mandate public comments on the stress test scenarios and models used. The lawsuit comes after the Fed announced changes to the stress testing process, including averaging bank resilience over two years and opening scenario designs for public feedback, raising concerns that further legal action may be required if their demands are not fully met.

Source: YAHOO

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