Several large banks plan to file a lawsuit against the Federal Reserve due to dissatisfaction with the annual stress test requirements, claiming that the related regulations are too stringent. Former Federal Reserve Vice Chairman Alan Blinder analyzed that both parties may reach a settlement before going to court. (Background: Federal Reserve spokesperson: The era of ultra-low interest rates is over, Trump holds the key to a rate cut in 2025) (Additional context: Trump: No plans to replace Fed Chairman Powell, December rate cut probability exceeds 85%) According to a report from CNBC, several large banks plan to file a lawsuit this week due to dissatisfaction with the Federal Reserve's stress test regulations. The Federal Reserve's stress test is an annual routine procedure that requires banks to prepare sufficient capital buffers for bad loans and imposes restrictions on stock buybacks and dividend payments. This move aims to ensure the stability of the financial system, but bankers believe the Federal Reserve's demands are too stringent and create operational pressure. The Federal Reserve's statement did not alleviate the banks' concerns. After the market closed on Monday, the Federal Reserve issued a statement announcing plans to adjust the stress test framework but did not provide specific details. The Federal Reserve added that these adjustments would not have a substantial impact on overall capital requirements, suggesting that the banks' main concerns may still be unresolved. Greg Bell, CEO of the Bank Policy Institute (BPI), which represents large banks like JPMorgan Chase, Citigroup, and Goldman Sachs, welcomed this statement, seeing it as an important step toward transparency and accountability. However, Bell simultaneously hinted that large banks may take further action, emphasizing: 'We are carefully reviewing this statement and considering other actions to facilitate reforms that comply with both legal and policy standards.' Former Federal Reserve Vice Chairman predicts an out-of-court settlement. Regarding this matter, former Federal Reserve Vice Chairman Alan Blinder stated on the Squawk on the Street program that he believes the conflict between the Federal Reserve and the banks is more likely to end in an out-of-court settlement rather than escalating further to the courts. He pointed out: Neither the Federal Reserve nor the banking industry wants to see a time-consuming lawsuit affect market confidence. Related reports: Federal Reserve spokesperson: The era of ultra-low interest rates is over, Trump holds the key to a rate cut in 2025. Trump: No plans to replace Fed Chairman Powell, December rate cut probability exceeds 85%. Federal Reserve officials support continued interest rate cuts, Fed hawks also suggest: A December rate cut is reasonable. 'JPMorgan Chase, Citigroup, Goldman Sachs, and other Wall Street banks plan to jointly sue the Federal Reserve due to dissatisfaction with this regulation.' This article was first published in BlockTempo (the most influential blockchain news media).