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U.S. banking lobbyists said Tuesday they have filed a lawsuit against the Federal Reserve over the central bank's stress testing framework, a major escalation between the industry and regulators.
The announcement comes one day after the Federal Reserve Announced plans “Big changes” to the annual stress tests of major US banks in a bid to make the process more transparent and the results less volatile.
“We appreciate the board’s announcement as a first step toward transparency and accountability, but we believe it is necessary to file this lawsuit to preserve our legal rights,” said Greg Baer, president and chair of the industry group at the Bank Policy Institute, one of five members. Plaintiffs in the case.
This is a developing story
