ChainCatcher news, according to market sources, an insider has revealed that several large banks are planning to sue the Federal Reserve regarding the annual bank stress tests. The source stated that the lawsuit is expected to be filed this week, potentially as early as Tuesday morning local time. The Federal Reserve's stress tests are an annual routine that requires banks to hold sufficient buffer capital for bad loans and sets limits on stock buybacks and dividends.
After the market close on Monday this week, the Federal Reserve announced in a statement that it plans to adjust the bank stress tests, but did not specify the exact adjustments to the annual stress test framework. However, these adjustments may not be sufficient to alleviate banks' concerns about heavy capital requirements. The Federal Reserve stated, 'These proposed adjustments are not intended to have a substantial impact on overall capital requirements.'
Greg Bell, CEO of the Bank Policy Institute (BPI), which represents large banks such as JPMorgan Chase, Citigroup, and Goldman Sachs, welcomed the Federal Reserve's statement, saying in a statement, 'Today's statement from the Federal Reserve is a first step towards transparency and accountability.' However, Bell also hinted at the possibility of further action: 'We are closely examining this statement and considering other measures to ensure timely reforms that comply with both legal and policy requirements.'