Some of the nation’s biggest banks and industry groups are suing the Federal Reserve over the annual “stress tests” it uses to determine how much cash banks are required to keep on hand in case of economic turmoil.
The Bank Policy Institute, an industry group representing JPMorgan, Goldman Sachs, Citigroup and others, joined the American Bankers Association and other major groups to file the suit. The groups said they don't oppose stress tests but that the Fed's “lack of transparency” around how it conducts them translates to “significant and unpredictable volatility” for banks, according to the suit filed Tuesday in the U.S. District Court for the Southern District of Ohio.
