Lawsuit Against Federal Reserve: Demand for More Transparency in Stress Tests

Economic and banking groups have filed a lawsuit against the Federal Reserve. The allegation: The central bank's annual stress tests are developed in a non-transparent manner. The main focus of the lawsuit is the desire to gain more insight into the establishment of the rules. Among the plaintiffs is the Bank Policy Institute. The groups' criticism is directed at the allegedly secret criteria of the stress tests, which lead to 'erratic and inexplicable requirements and restrictions on bank capital.' This lack of consistency negatively impacts the costs of financial services in the USA, according to the plaintiffs in their lawsuit filed on Tuesday in the state of Ohio.