US banking lobby sues Fed over stress testing framework

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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